Analysis of five-year variable mortgage rates in Canada as of October 14, 2025.

Five-year variable-rate mortgages in Canada are a constant topic of interest for real estate buyers. As of October 14, 2025, these rates vary by financial institutions and are influenced by various economic factors. This article examines the current rates offered by the major Canadian banks, explains how variable rates work, analyzes recent trends, and offers guidance to potential buyers.

What is a variable-rate mortgage?

A variable-rate mortgage is a type of loan where the interest rate can fluctuate during the term, typically based on the bank's prime rate. Unlike a fixed rate, where the interest rate remains constant, a variable rate can rise or fall, which directly affects the amount of the monthly payments. This variability can offer savings if interest rates fall, but also carries the risk of higher payments if rates rise.

Five-year variable-rate mortgages as of October 14, 2025

Here is an overview of five-year variable-rate mortgages offered by some of the major Canadian banks:

• Royal Bank of Canada (RBC) : RBC offers a variable rate of 4.20%, i.e., the prime rate minus 0.50%. (rbcroyalbank.com)
• National Bank of Canada : Specific information on current variable rates is not available in the sources consulted. It is recommended to contact the bank directly to obtain the most recent rates.
• Scotiabank : Precise details on current variable rates are not available in the sources consulted. It is advised to consult the bank's official site or contact a representative for up-to-date information.
• TD Bank : Specific information on current variable rates is not available in the sources consulted. To obtain the most recent rates, it is recommended to contact the bank directly.
• Bank of Montreal (BMO) : Precise details on current variable rates are not available in the sources consulted. It is advisable to consult the bank's official site or contact a representative for up-to-date information.
• CIBC : Specific information on current variable rates is not available in the sources consulted. To obtain the latest rates, it is recommended to contact the bank directly.
• Desjardins : Precise details on current variable rates are not available in the sources consulted. It is advised to consult the bank's official site or contact a representative for up-to-date information.

It is important to note that these rates can vary depending on various factors, including the borrower's credit profile, the mortgage amount, and the specific terms of each financial institution.

Recent trends in variable mortgage rates

In September 2025, the Bank of Canada lowered its policy rate by 0.25 percentage points, bringing it to 2.50%. (banqueducanada.ca) This reduction led to a corresponding drop in banks' prime rate, which fell to 4.70%. (nesto.ca) This decrease in the prime rate had a direct impact on variable mortgage rates, making them more attractive to borrowers.

Forecasts indicate that the policy rate could still fall by the end of 2025, potentially reaching 2.25%. (nesto.ca) If these forecasts come true, variable mortgage rates could continue to decline, thus offering additional opportunities for homebuyers.

Tips for homebuyers

1. Assess your risk tolerance: Variable rates can offer savings if interest rates fall, but they also carry the risk of higher payments if rates rise. It is essential to assess your financial capacity to absorb potential rate increases.
2. Compare offers: Rates and terms vary from one institution to another. It is therefore recommended to compare offers from several banks and lenders to find the one that best fits your needs.
3. Consider conversion options: Some variable-rate mortgages offer the ability to convert to a fixed rate without penalty. This option can be advantageous if interest rates begin to rise.
4. Consult a financial advisor: A professional can help you understand the implications of a variable rate and determine whether it is the best option for your financial situation.

Conclusion

Five-year variable-rate mortgages in Canada present interesting opportunities for homebuyers, especially in the current environment of falling interest rates. However, it is crucial to fully understand the associated risks and to make an informed decision based on your personal financial situation. By staying informed about market trends and consulting experts, buyers can navigate the Canadian mortgage landscape effectively.