5-Year Variable Mortgage Rates in Canada: State of Play as of October 14, 2025

Five-Year Variable Mortgage Rates in Canada: Status as of October 14, 2025

Introduction

The Canadian real estate market is constantly evolving, influenced by various economic and financial factors. Mortgage rates, particularly five-year variable rates, play a crucial role in real estate buyers' decisions. This article provides an overview of the current rates offered by the major Canadian banks, analyzes recent trends, and offers prudent advice for borrowers.

Five-Year Variable Mortgage Rates as of October 14, 2025

Here are the five-year variable mortgage rates offered by the six largest Canadian banks:

• Royal Bank of Canada (RBC): Prime rate of 4.70%, with a 0.50% discount, i.e., an effective rate of 4.20%. (rbcroyalbank.com)

• Toronto-Dominion Bank (TD): Prime rate of 4.85%, with a 0.15% discount, i.e., an effective rate of 4.70%. (td.com)

• Bank of Montreal (BMO): Prime rate of 4.70%, with a 0.05% discount, i.e., an effective rate of 4.65%. (bmo.com)

• Canadian Imperial Bank of Commerce (CIBC): Prime rate of 4.70%, with a 0.50% discount, i.e., an effective rate of 4.20%.

• Scotiabank: Prime rate of 4.70%, with a 0.50% discount, i.e., an effective rate of 4.20%.

• National Bank of Canada (NBC): Prime rate of 4.70%, with a 0.50% discount, i.e., an effective rate of 4.20%. (bnc.ca)

Note: Rates are subject to change and may vary based on market conditions and borrower profiles.

Recent Trends

Over the past months, variable mortgage rates have experienced notable fluctuations. In April 2025, several banks raised their fixed rates in response to rising bond yields. For example, TD Bank raised its five-year fixed rate by 45 basis points, bringing it to 5.59%. This trend was followed by other financial institutions, reflecting an overall increase in borrowing costs. (conseiller.ca)

However, variable rates have shown some stability, with minor adjustments based on the Bank of Canada's decisions regarding the policy rate. Currently, the prime rate in Canada is 4.70%, directly influencing variable mortgage rates. (wowa.ca)

Tips for Borrowers

1. Assess Your Risk Tolerance: Variable rates can offer initial savings, but they carry a risk tied to market fluctuations. Make sure you are comfortable with the possibility of future rate increases.

2. Compare Offers: Rates and terms vary from one bank to another. Take the time to compare offers and negotiate the most advantageous terms for your situation.

3. Consider Early Repayment Options: Some mortgages allow early repayments without penalties, offering valuable flexibility in case of unexpected cash inflows.

4. Stay Informed of Bank of Canada Decisions: Announcements regarding the policy rate directly influence variable rates. Stay informed to anticipate potential rises or falls.

5. Consult a Mortgage Advisor: A professional can help you navigate the different options and choose the product best suited to your needs and financial situation.

Conclusion

Five-year variable mortgage rates offered by the major Canadian banks currently display subtle variations, reflecting the dynamics of the financial market. It is essential for borrowers to stay informed, compare offers, and consult experts to make informed decisions. By carefully evaluating your options and taking into account your risk tolerance, you can choose the mortgage that best aligns with your financial goals.