Find the Best Open Variable Mortgage Rates in Canada

Compare the best open variable mortgage rates from major banks, credit unions and mortgage brokers.

Today's top rates in:

5-Year Variable
4.75%
5-Year Fixed
4.77%
Today's 5 years Variable Mortgage Rates

Rates are based on a home value of $500,000

Updated 11:27 ET on Mar 11, 2025
TD-Canada-Trust logo
6.60%
Term
5 Yr Variable
Loan to value
Up to 95%
Insurance
Insured
Rate held until
Sep 01
logo_1080 logo
6.10%
Term
5 Yr Variable
Loan to value
Up to 95%
Insurance
Insured
Rate held until
Aug 02
Scotiabank logo
6.90%
Term
5 Yr Variable
Loan to value
Up to 95%
Insurance
Insured
Rate held until
Aug 02

Rates are based on a home value of $500,000

Updated 11:27 ET on Mar 11, 2025
National-Bank logo
6.45%
Term
5 Yr Variable
Loan to value
Up to 95%
Insurance
Insured
Rate held until
Sep 01
BMO logo
5.95%
Term
5 Yr Variable
Loan to value
Up to 95%
Insurance
Insured
Rate held until
Sep 11
RBC-Royal-Bank logo
5.95%
Term
5 Yr Variable
Loan to value
Up to 95%
Insurance
Insured
Rate held until
Sep 01

Rates are based on a home value of $500,000

Updated 11:27 ET on Mar 11, 2025
logo_14961 logo
6.45%
Term
5 Yr Variable
Loan to value
Up to 95%
Insurance
Insured
Rate held until
Sep 01
logo_1078 logo
5.95%
Term
5 Yr Variable
Loan to value
Up to 80%
Insurance
Uninsured
Rate held until
Sep 01
logo_17945 logo
5.95%
Term
5 Yr Variable
Loan to value
Up to 95%
Insurance
Insured
Rate held until
Sep 01

Today's Best Mortgage Rates in Canada

Evaluate Canada's best 5-year variable mortgage rates in one place. RATESDOTCAs Rate Matrix lets you compare pricing for all key mortgage types and terms.

Info icon

Rates are based on an average mortgage of $500,000 and subject to change based on filter criteria.

Updated 06:43 on May 04, 2025
Placeholder
Insured The rates in this column apply to borrowers who have purchased mortgage default insurance. This is required when you purchase a home with less than a 20% down payment. The home must be owner-occupied and the amortization must be 25 years or less.
80% LTV The rates in this column apply to mortgage amounts between 65.01% and 80% of the property value. The home must be owner-occupied and have an amortization of 25 years or less. You must have purchased it for less than $1 million. These rates are not available on refinances. Refinances require "Uninsured" rates.
65% LTV The rates in this column apply to mortgage amounts that are 65% of the property value or less. The home must be owner-occupied and have an amortization of 25 years or less. You must have purchased it for less than $1 million. These rates are not available on refinances. Refinances require "Uninsured" rates.
Uninsured The rates in this column apply to purchases over $1 million, refinances and amortizations over 25 years. More info on the differences between insured and uninsured rates.
Bank Rate Bank Rate is the mortgage interest rate posted by the big banks in Canada.
1-year fixed rate 4.99% 4.69% 4.69% 5.59%
5.49% cibc-mortgage logo
2-years fixed rate 3.89% 4.19% 4.19% 4.70%
4.79% cibc-mortgage logo
3-years fixed rate 3.79% 3.79% 3.79% 4.09%
4.39% cibc-mortgage logo
4-years fixed rate 4.29% 4.15% 4.15% 4.44%
4.29% cibc-mortgage logo
5-years fixed rate 3.79% 3.84% 3.89% 3.84%
3.99% cibc-mortgage logo
7-years fixed rate 5.19% 5.00% 5.00% 5.19%
5.00% royalbankofcanada logo
10-years fixed rate 5.24% 5.25% 5.25% 5.29%
6.09% National_Bank_of_Canada_logo logo
3-years variable rate 4.40% 4.30% 4.30% 4.40%
6.35% Scotiabank-Logo logo
5-years variable rate 4.00% 4.04% 4.04% 4.05%
4.25% royalbankofcanada logo
HELOC rate N/A N/A N/A N/A
N/A
Stress Test 5.25% 5.25% 5.25% 5.25%
N/A

Today's Best Mortgage Rates in Canada

Evaluate Canada’s best mortgage rates in one place. You can compare the most current mortgage rates and monthly payments from 175+ banks and lenders across Canada.

$
filter icon

Rates are based on an average mortgage of $500,000 and subject to change based on filter criteria.

Lender tooltip icon Insured tooltip icon Insurable tooltip icon Uninsured tooltip icon
Frank Mortgage
Frank Mortgage
3.79% grey tooltip icon
$2,573.49 / month
3.99% grey tooltip icon
$2,627.39 / month
3.89% grey tooltip icon
$2,600.37 / month
Compass Mortgage Group oa My Mortgage Power
Compass Mortgage Group oa My Mortgage Power
3.89% grey tooltip icon
$2,600.37 / month
3.99% grey tooltip icon
$2,627.39 / month
3.89% grey tooltip icon
$2,600.37 / month
MMG Mortgages
MMG Mortgages
3.94% grey tooltip icon
$2,613.86 / month
4.14% grey tooltip icon
$2,668.19 / month
3.94% grey tooltip icon
$2,613.86 / month
Northwood Mortgage Ltd.
Northwood Mortgage Ltd.
4.19% grey tooltip icon
$2,681.85 / month
4.49% grey tooltip icon
$2,764.59 / month
4.19% grey tooltip icon
$2,681.85 / month
BMO
BMO
4.25% grey tooltip icon
$2,698.30 / month
4.47% grey tooltip icon
$2,759.03 / month
4.47% grey tooltip icon
$2,759.03 / month
Innovation Federal Credit Union
Innovation Federal Credit Union
4.49% grey tooltip icon
$2,764.59 / month
4.49% grey tooltip icon
$2,764.59 / month
4.49% grey tooltip icon
$2,764.59 / month
Gibson Mortgages
Gibson Mortgages
4.99% grey tooltip icon
$2,905.18 / month
4.44% grey tooltip icon
$2,750.71 / month
4.29% grey tooltip icon
$2,709.29 / month
True North Mortgage
True North Mortgage
2.99% grey tooltip icon
$2,363.66 / month
2.99% grey tooltip icon
$2,363.66 / month
2.99% grey tooltip icon
$2,363.66 / month
Hypotheca
Hypotheca
3.74% grey tooltip icon
$2,560.11 / month
3.74% grey tooltip icon
$2,560.11 / month
3.74% grey tooltip icon
$2,560.11 / month
DUCA Financial
DUCA Financial
3.79% grey tooltip icon
$2,573.49 / month
3.79% grey tooltip icon
$2,573.49 / month
3.79% grey tooltip icon
$2,573.49 / month
Monster Mortgage
Monster Mortgage
3.79% grey tooltip icon
$2,573.49 / month
3.79% grey tooltip icon
$2,573.49 / month
3.79% grey tooltip icon
$2,573.49 / month
Nesto
Nesto
3.84% grey tooltip icon
$2,586.91 / month
3.84% grey tooltip icon
$2,586.91 / month
3.84% grey tooltip icon
$2,586.91 / month
The Mortgage Advisors
The Mortgage Advisors
3.87% grey tooltip icon
$2,594.98 / month
3.87% grey tooltip icon
$2,594.98 / month
3.87% grey tooltip icon
$2,594.98 / month
Interior Savings
Interior Savings
3.89% grey tooltip icon
$2,600.37 / month
3.89% grey tooltip icon
$2,600.37 / month
3.89% grey tooltip icon
$2,600.37 / month
City Wide Financial Corp
City Wide Financial Corp
3.89% grey tooltip icon
$2,600.37 / month
3.89% grey tooltip icon
$2,600.37 / month
3.89% grey tooltip icon
$2,600.37 / month
Prospera Credit Union
Prospera Credit Union
3.94% grey tooltip icon
$2,613.86 / month
3.94% grey tooltip icon
$2,613.86 / month
3.94% grey tooltip icon
$2,613.86 / month
Mortgage Brokers City Inc
Mortgage Brokers City Inc
3.94% grey tooltip icon
$2,613.86 / month
3.94% grey tooltip icon
$2,613.86 / month
3.94% grey tooltip icon
$2,613.86 / month
Profile picture of Lubna Umar
Written By Lubna Umar

Updated March 26, 2025

What is a 5-year open variable-rate mortgage?

An open 5-year variable has some key similarities and differences versus the more popular closed 5-year closed mortgage.

On the one hand, both are variable, or “floating-rate” mortgages, meaning the interest costs can fluctuate over the term if prime rate rises or falls. Unless you have a fixed-payment variable rate (usually just called a variable-rate mortgage, or VRM), these movements in prime could affect your monthly mortgage payments (that’s referred to as an adjustable-rate mortgage, or ARM).

In the case of a VRM, if prime rate rose, the amount of your monthly payment going towards interest cost would increase and the amount going towards principal would decrease, and vice versa if prime rate fell.

The thing that makes open variable mortgages unique is that they allow the borrower to repay as much of the loan as they like -- at any time without penalty. That said, the loan is still based on scheduled payments over the five-year term.

Closed mortgages, on the other hand, have restrictions on the amount you can repay on top of your scheduled mortgage payments.

Breaking a closed variable mortgage early can also entail prepayment charges. Those “penalties,” as it were, are typically three months’ interest.

Pros of a 5-year variable-rate open mortgage

If you’re debating whether a 5-year variable-rate open mortgage is for you, here are some advantages to consider.

  • Flexibility: When it comes to paying off your mortgage, having an open mortgage means you can make more frequent payments or make a large lump-sum payment without incurring any penalties. That makes the product well-suited for short-term financing needs with an uncertain time horizon.
  • Refinance at any time: For those who want the freedom to refinance their mortgage at any time, an open variable-rate mortgage provides just that. There is absolutely no penalty should you want to refinance early and because you can choose any lender, you have full access to the market’s best rates.

Cons of a 5-year variable-rate open mortgage

Open variables have some disadvantages as well.

  • Risk of rising rates in the future: Your interest costs could potentially surge if interest rates rise quickly. That’s because variable rates fluctuate as prime rate rises and falls.
  • Higher rates: Because open mortgages offer the ultimate flexibility when it comes to prepaying your mortgage, the interest rate is significantly higher compared to closed mortgages. As an example, if a closed variable rate is prime – 1.00%, an open variable could be two points higher, or prime + 1.00%.

The significant rate premium means you should never plan to hold an open variable for more than 3-9 months. Any more than that and you’d potentially be better off getting a low-cost closed variable, breaking the mortgage early and paying the 3-month interest charge.

Learn more about 5-year variable mortgages.

Variable Rate Outlook – 2021

As of this writing, in spring 2021, prime rate has remained unchanged at 2.45% since March 2020. Guidance from the Bank of Canada suggests no changes to its target overnight rate until mid-to-late 2022.

Those tempted by low floating-rate offers can have confidence that rate hikes are not on the horizon for at least the next year and a half, says the Bank of Canada. However, borrowers should be mindful that the most likely direction for rates is upwards, so be prepared to:

(A) see your rate rise in the coming years, or

(B) lock into a fixed rate at the first sign that rates will rise.

Note: There is little chance of obtaining the best fixed rates available when you are switching from a variable to a fixed. Among other reasons, that’s because lenders anticipate rising rates well ahead of most borrowers and price their fixed-rate offers accordingly.

A couple look happily toward each other and prepare to sign papers

Open variable rate alternatives

If the flexibility of being able to repay your mortgage at any time is important to you, another option is a Home Equity Line of Credit (HELOC).

A HELOC lets you borrow against your home equity. HELOC interest rates fluctuate because they are quoted as a discount or premium to the prime rate. Borrowers can repay their HELOC as quickly or slowly as they want, as only the interest cost must be paid each month.

HELOCs have cheaper rates but often higher set-up costs. Moreover, you cannot transfer a mortgage into a HELOC so legal fees generally apply. Some lenders do allow free transfers into an open variable mortgage.

Find out if a HELOC is right for you.

 

Lubna Umar

Lubna Umar,

Lubna Umar is an SEO Content Manager at RATESDOTCA. She has produced a wide variety of content, including academic essays, pieces of fiction and financial literacy guides. In her free time, she can be found exploring the caf culture in Toronto or any other major city.

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