Today’s Best Variable Mortgage Rates in Canada
The best variable mortgage rates at Canada’s Big 6 banks
Bank | Rate | Bank | Rate |
|---|---|---|---|
4.15% (4.17% APR) | 3.95% (3.98% APR) | ||
4.15% (4.17% APR) | 4.90% (4.91% APR) | ||
4.45% (4.49% APR) | 4.24% (4.261% 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.
Variable mortgage rate news: January 2026
Variable mortgage rates aren’t expected to experience much movement in January. They may actually be stuck at their current levels for most of the year.
It all depends on what the Bank of Canada decides to do with its overnight rate, which directly influences variable rates.
The Bank signaled in December that its overnight rate is at “about the right level” to fight inflation and support the economy, which should rule out any imminent rate cuts or increases. So long as the Bank maintains its overnight rate, variable mortgage rates won’t budge.
That’s almost certain to happen on January 28, when the Bank’s next rate decision is scheduled. Assuming the Bank announces a rate hold, the lowest variable mortgage rates in Canada should continue hovering around 3.4% until at least mid-March.
2026 variable mortgage rate forecast
The future of variable rates in 2026 depends on how the Bank of Canada approaches its overnight rate. (A reduction in the overnight rate means lower variable mortgage rates.)
In December, the BoC stated that the overnight rate is at a level that supports the Canadian economy and limits inflation, which implies no further rate cuts. So long as the Bank holds the overnight rate, variable mortgage rates will not change to a significant degree.
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.
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 2026, including:
After multiple Bank of Canada rate cuts in 2025, variable rates are as low as they’ve been in more than three years. In some cases, they're significantly lower than fixed rates.
Variable rates often trigger 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.
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.Â
Term length. Variable-rate mortgages generally come in three- and five-year terms. Three-year terms often have higher mortgage rates.Â
Payment frequency. The more frequent your payments — bi-weekly instead of monthly, for example — the faster you can pay off your mortgage.Â
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.Â
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.
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 mortgage rates decrease?
When will variable mortgage rates decrease?
In December 2025, the Bank of Canada indicated that it is pausing overnight rate cuts. That means variable rates could stay put for much of 2026, unless economic conditions deteriorate more than expected.
What's a good variable mortgage rate today?
What's a good variable mortgage rate today?
As of January 2026, variable mortgage rates can be found for under 3.5% at some mortgage brokerages and direct lenders.
8Twelve has partnered with over 65 Canadian mortgage lenders to provide competitive rates on over 7,000 mortgage products. 8Twelve can quickly match you with a lender and mortgage type that meets your needs — even if your financial situation is unique.
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Clay Jarvis
Clay Jarvis
Clay Jarvis