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

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

Introduction

The Canadian real estate market is continually evolving, influenced by various economic and financial factors. Mortgage rates, particularly 5-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 sound advice for borrowers.

5-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 % reduction, i.e., an effective rate of 4.20 %. (rbcroyalbank.com)

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

• Bank of Montreal (BMO) : Prime rate of 4.70 %, with a 0.05 % reduction, 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 % reduction, i.e., an effective rate of 4.20 %.

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

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

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

Recent Trends

Over the past few months, variable mortgage rates have shown notable fluctuations. In April 2025, several banks increased their fixed rates in response to rising bond yields. For example, TD Bank raised its 5-year fixed rate by 45 basis points, bringing it to 5.59%. This trend was followed by other financial institutions, reflecting a general rise in borrowing costs. (conseiller.ca)

However, variable rates have shown some stability, with minor adjustments depending 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 related to market fluctuations. Make sure you are comfortable with the possibility of future rate increases.

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

3. Consider Prepayment Options: Some mortgages allow prepayments without penalties, offering valuable flexibility in case of unexpected income.

4. Stay Informed About Bank of Canada Decisions: Announcements concerning the policy rate directly influence variable rates. Stay informed to anticipate potential increases or decreases.

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

The 5-year variable mortgage rates offered by the major Canadian banks currently show 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 your risk tolerance into account, you can choose the mortgage that best aligns with your financial goals.