Five-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 constantly evolving, influenced by various economic and financial factors. Mortgage rates, particularly 5-year variable rates, play a crucial role in property buyers' decisions. This article provides an overview of the current rates offered by the major Canadian banks, analyzes recent trends, and offers informed guidance 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 percentage point reduction, i.e., an effective rate of 4.20%. (rbcroyalbank.com)

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

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

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

• National Bank of Canada (NBC): Prime rate of 4.70%, with a 0.50 percentage point 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 seen notable fluctuations. In April 2025, several banks increased their fixed rates in response to the rise in bond yields. For example, TD Bank raised its 5-year fixed rate by 45 basis points, bringing it to 5.59%. This trend has been followed by other financial institutions, reflecting a general rise 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. Assessing 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. Shop Around: 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 prepayments without penalties, providing valuable flexibility in case of unexpected inflows.

4. Stay Informed about the Bank of Canada's Decisions: Announcements regarding 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 considering your risk tolerance, you can choose the mortgage that best aligns with your financial goals.