Today’s Best Variable Mortgage Rates in Canada
Editor’s Note: The Bank of Canada has lowered its overnight rate to 2.5%, a decrease of 0.25 percentage points. This was the first rate cut in six months. In its announcement, the BoC stated, “After remaining resilient to sharply higher US tariffs and ongoing uncertainty, global economic growth is showing signs of slowing.” Read more about the cut and how it could affect home buyers.
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The best variable mortgage rates at Canada’s Big 6 banks
Bank | Rate | Bank | Rate |
|---|---|---|---|
4.65% (4.67% APR) | 3.90% (3.93% APR) | ||
4.50% (4.52% APR) | 5.15% (5.40% APR) | ||
4.60% (4.64% APR) | 4.54% (4.561% APR) |
Not every Big Six bank works directly with mortgage brokers, so if you're comparing mortgage rates on your own, it can be helpful to consult both brokerage rates — like the ones in the table above — and those offered by Canada's major banks.
Click on a bank's name to see a full list of its current posted and discounted mortgage rates.
Is it a good idea to choose a variable mortgage rate right now?
There are a few reasons why variable mortgage rates are fairly attractive in 2025, including:
They're expected to fall another 25-50 basis points this year, far more than fixed rates are projected to decline.
They charge lower pre-payment penalties than fixed rates, so if you have to move or sell ahead of schedule it's less expensive.
If variable rates start rising in 2026 or 2027, you have the option of switching to a fixed rate.
One knock against variable rates is that they're currently higher than three- and five-year fixed rates. Qualifying for a variable might be more challenging, and until variable rates drop another 50 basis points, they'll generally result in higher mortgage payments.
Pros and cons of variable mortgage rates
Pros
- Historically, variable rates have saved borrowers more money compared to fixed mortgage rates.
- Variable–rate mortgages charge lower penalties if you have to break your mortgage to sell or move.
- If variable mortgage rates rise, you may be able to switch to a fixed interest rate for the rest of the term.
Cons
- If variable mortgage rates spike, your mortgage could become unaffordable.
- Breaking a variable-rate mortgage will still result in pre-payment penalties.
- You may not be able to port your mortgage without converting to a fixed rate first.
Things to consider when choosing a variable mortgage rate
Mortgage type. Variable-rate mortgages come in two types: fixed payment and variable payment. Variable payment tends to be riskier because the actual size of your mortgage payment will change when your rate rises or falls.
Term length. Variable-rate mortgages generally come in three- and five-year terms. Three-year terms often have higher mortgage rates.
Payment frequency. The more frequent your payments — bi-weekly instead of monthly, for example — the faster you can pay off your mortgage.
Broker or bank? A mortgage broker can compare a larger number of mortgage offers for you, which might help you find the best variable mortgage rate. It doesn’t hurt to talk to a broker and a bank or two when comparing mortgage rates.
5 ways to get the best variable mortgage rate
1. Boost your credit score. The best mortgage rates generally go to creditworthy borrowers, meaning those with a solid credit score of 680 and higher. Regularly paying your bills and credit card balances in full is one way to keep your credit score in good standing.
2. Pay down existing debt. The less debt you have, the less risk you pose to lenders, who will have more leeway to offer you a lower rate.
3. Increase your down payment. Proving you can save money and prioritize homeownership might signal to lenders that you’re worthy of a lower interest rate.
4. Shop around. Get rate quotes from banks and mortgage brokers to ensure you’re exploring all of your options.
5. Negotiate. You should always try to negotiate a lower rate than what your lender initially offers. Since variable mortgage rates are based on a lender’s prime rate, there might not be as much room to negotiate as there is with fixed rates.
If the uncertainty of a variable-rate mortgage isn't for you, you'll want to take a look at today's best three-year fixed mortgage rates and five-year fixed mortgage rates.
Variable mortgage rate news: September 2025
The Bank of Canada cut its overnight rate on September 17, 2025.
Variable mortgage rates will soon decrease by 0.25%.
If unemployment continues rising, home buyers may retreat back to the sidelines.
The Bank of Canada announced on September 17, 2025, that it was lowering its overnight rate 25 basis points to 2.5%. It was the Bank's first rate cut since March.
As of September 17, 2025, most variable mortgage rates are still in the 4% to 4.5% range. Once the cut works its way through Canadian banks, you'll see variable rate offers for around 3.7% at some brokerages.
The Bank is expected to deliver another rate cut this year, so variable rates are looking mighty tasty. Just remember that variable rates carry the risk of increasing. If you're not comfortable with that risk, consider a three-year fixed rate or a five-year fixed rate.
2025 variable mortgage rate forecast
The Bank of Canada reduced its overnight rate five times in 2024, and has cut twice more in 2025 so far.
With so much uncertainty facing the Canadian economy, primarily the tariff threat from the U.S. and a new federal government, the Bank of Canada is expected to lower the overnight rate another two or three times this year.
Each time the bank cuts, variable mortgage rates will shrink by the same amount. Three 25-basis point cuts, for example, would reduce variable mortgage rates by 0.75%.
Read more about the Bank of Canada's latest rate announcement.
The BoC makes policy interest rate announcements eight times a year. Find out how its latest decision might impact Canada's housing market.
What determines variable mortgage rates?
Prime rate. When a lender’s prime rate rises or falls, its variable mortgage rates move in the same direction and by the same amount.
The Bank of Canada. When the Bank’s overnight lending rate increases or decreases, prime rates follow suit, affecting variable mortgage rates.
Inflation. The Bank of Canada raises the overnight rate when inflation’s high, and lowers it if the economy needs a boost. That’s why variable rates are high during times of inflation.
Your financial situation. The variable mortgage rate you’re offered will be customized according to your debt service ratios, credit score and overall financial health.
Making your own variable mortgage rate forecast
If you want to carry out a little DIY mortgage rate forecasting, keep an eye on Canada’s inflation rate.
If inflation is trending upward, you can generally expect the Bank of Canada to respond by raising its overnight rate. When that happens, variable mortgage rates also increase. If inflation is declining, the Bank may choose to lower the overnight rate, which will result in lower variable rates.
The economy can be a tricky thing to read, and forecasts are frequently wrong, so never assume you know exactly where rates are heading.
Frequently asked questions
When will variable rates decrease?
When will variable rates decrease?
Variable mortgage rates started decreasing in June 2024, shrinking each time the Bank of Canada reduced its overnight rate. The Bank has cut rates three times in 2025.
What's a good variable mortgage rate today?
What's a good variable mortgage rate today?
In Sept. 2025, the best variable rates were around 4%. Getting a lower rate would probably require reaching out to a broker to find you a better deal than what Canada’s biggest banks are offering.
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Clay Jarvis
Clay Jarvis