1-Year VARIABLE Mortgage Rates at Major Canadian Banks – September 2025

1-Year VARIABLE Mortgage Rates – Major Canadian Banks (September 2025)

Here is an overview of current 1-year variable mortgage rates offered by Canada's major banks as of September 2025:

• Royal Bank of Canada (RBC): 5.79%
• TD Bank: 5.84%
• Scotiabank: 5.74%
• Bank of Montreal (BMO): 5.80%
• CIBC: 5.82%

These rates are subject to change and may vary based on the borrower's profile and market conditions.

Impact of Recent Bank of Canada Changes

In 2025, the Bank of Canada made several adjustments to its key interest rate in response to evolving inflation and overall economic conditions. Following a period of stability earlier in the year, the Bank of Canada reduced its key rate during summer 2025, from 5.00% to 4.75%, then to 4.50% in September 2025.

Consequences for Variable Rates:
- Variable mortgage rates are directly influenced by the Bank of Canada’s key rate.
- The recent rate cuts have led to a slight decrease in variable rates offered by major banks, making mortgages a bit more affordable for borrowers.
- However, banks remain cautious and maintain a safety margin due to ongoing economic uncertainty.

Conclusion

1-year variable mortgage rates are currently slightly lower than last year, thanks to the Bank of Canada’s recent adjustments. It remains important to compare offers and consult an advisor to choose the best option for your situation.

For any questions about mortgage financing, contact your mortgage advisor or broker.