3-year variable mortgage rates in Canada.
Today’s best 3-year variable rate in our network is 3.55% — about $2,811/month on a $700,000 home with 20% down. A 3-year variable is a shorter-commitment variable for borrowers who want flexibility and a quick re-shop.
Who has the best 3-year variable rate?
Radius Financial, at 3.55%. A niche term: useful, but offered by fewer lenders than the 5-year variable.
Rates illustrative; your file (credit, income, LTV) sets your personalized rate. See the full live board →
What would my payment be?
About $2,811/month. On a $700,000 home with 20% down, the mortgage is $560,000. At today’s best 3-year variable rate of 3.55% over a 25-year amortization, using Canadian semi-annual compounding, that’s the payment. That payment moves with prime over the term.
| Term | Best rate | Est. monthly payment* |
|---|---|---|
| 5-Year Fixed | 4.14% | $2,988/mo |
| 5-Year VariableLowest | 3.00% | $2,650/mo |
| 3-Year Fixed | 3.99% | $2,943/mo |
| 3-Year Variable | 3.55% | $2,811/mo |
| 2-Year Fixed | 3.99% | $2,943/mo |
| 1-Year Fixed | 4.19% | $3,004/mo |
| 4-Year Fixed | 4.14% | $2,988/mo |
| 7-Year Fixed | 4.49% | $3,096/mo |
| 10-Year Fixed | 5.29% | $3,350/mo |
Is a 3-year variable right for you?
Borrowers who like the variable structure but want to revisit the whole mortgage in three years rather than five. It suits people expecting rate cuts who also anticipate a change (selling, refinancing, or restructuring) inside three years.
What drives the rate, and what breaking it costs
What drives the rate. Like the 5-year variable, it moves with prime and the Bank of Canada, but the shorter term means you renegotiate sooner. Availability is thinner than the 5-year variable, so the lender mix that offers it matters.
Breaking it early. Three months' interest, the same cheap-exit advantage as any variable, paired here with an even shorter commitment.
Canadian variable rates accrue interest on your declining balance daily and move with your lender's prime rate. The rate you’re offered is then set by your credit, your down payment / loan-to-value, whether the mortgage is insured, and the property. We compare 3-year variable pricing across 100+ lenders on one application, then hold your best rate for 90-120 days. Run the numbers in our payment calculator and check the rate forecast.
Fixed or variable?
Fixed keeps your rate and payment the same for the term. Variable moves with prime and costs less to break (3 months’ interest). The 3-year variable you’re comparing is a variable-rate product.
Fixed vs variable vs adjustable: what's the difference?
| Feature | Fixed rate | Variable (VRM) | Adjustable (ARM) |
|---|---|---|---|
| Rate movement | Locked for the term | Moves with prime; payment stays flat | Moves with prime; payment adjusts too |
| Payment stability | 100% predictable | Payment fixed; amortization floats | Payment rises and falls with prime |
| Break penalty | Greater of IRD or 3 months interest | 3 months interest only | 3 months interest only |
| Rate follows | GoC 5-year bond yield | Bank of Canada overnight rate → prime | Bank of Canada overnight rate → prime |
| Best for | Budget certainty; holding full term | Expects rate cuts; may break early | Comfortable with payment swings |
Do insured mortgages get lower rates?
Yes. With under 20% down your mortgage is insured, and insured files routinely land 0.20–0.40% below conventional — more than any bank vs broker gap.
Insured vs conventional: rate tiers by down payment
| Tier | Down payment | Max purchase | Rate vs insured | Insurance cost |
|---|---|---|---|---|
| Insured (high-ratio) | 5–19.99% | $1.5M (Dec 2024+) | Lowest rates | 0.60–4.00% of mortgage + ON PST 8% |
| Insurable (low-ratio) | 20–34.99% | No cap | +0.05–0.15% | Optional; lender may insure back-end |
| Conventional (uninsured) | 35%+ | No cap | +0.20–0.40% | None |
A broker shops insured pricing first and captures the deeper discount when your file qualifies — the rate gap alone often eclipses the CMHC premium cost over the term. CMHC insurance explained →
What does it cost to break a 3-year variable early?
3 months' interest. No IRD, no surprises — which makes variable the easiest Canadian mortgage to move.
How the penalty is calculated
3 months interest
Balance × rate ÷ 12 × 3. On $500,000 at prime (4.45%), that’s ~$5,563. Unlike fixed IRD, this is fully predictable from day one.
No IRD on variable
Variable mortgages never carry IRD. The penalty is always just 3 months interest — making variable the most portable option if you expect to sell or refinance mid-term.
Porting a variable
Most variable mortgages are portable within a 30–60 day window. Porting avoids the break penalty entirely — ask your broker whether your product qualifies before you list.
Why get your 3-year variable rate through a broker?
Because 100+ lenders compete for your file instead of one. We can help you save money.
100+ lenders compete, not one
A bank shows you one 3-year variable rate sheet. We put your file in front of 100+ lenders — banks, monolines and credit unions.
Broker pricing
The rate we get is typically 15-30 bps below a bank's posted rate. Only a brokerage can reach it.
Flexible by design
You get maximum flexibility but give up the longer rate hold a 5-year term provides.
Your rate held 90-120 days
A pre-approval locks your 3-year variable rate while you shop, and many lenders honour a drop before closing.
Both options modelled
We model fixed and variable on your numbers before you commit. No credit pull to start.
Bring us a written offer from a big bank. We’ll try to beat it. If we can’t, we pay you $500. Conditions apply. See the conditions
Whatever your situation
First home, renewal, refinance, self-employed or bruised credit: there’s a 3-year variable path for your file.
First-time buyers
5% down with FHSA + RRSP HBP optimization.
Refinancing
Tap your home equity for renovations, debt consolidation, or investing.
Renewing
Don't auto-renew. Compare your bank's offer against the market.
Self-employed
Business-for-self files priced right — A-lender, alt-A and private.
Bruised credit
B-lender and private paths now, with a mapped exit to A-pricing.
New to Canada
Newcomer programs at the big banks; international credit accepted.
Best 3-year variable rates — FAQ
What is the best 3-year variable mortgage rate in Canada right now?
The best 3-year variable rate in our 100+ lender network is approximately 3.55% as of Oct 24, 2026 — about $2,811/month on a $700,000 home with 20% down over 25 years. Your personalized rate depends on your file — income, credit, loan-to-value, and property type. We shop every lender on one application to find your lowest.
Is a 3-year variable rate a good idea?
Borrowers who like the variable structure but want to revisit the whole mortgage in three years rather than five. It suits people expecting rate cuts who also anticipate a change (selling, refinancing, or restructuring) inside three years. You get maximum flexibility but give up the longer rate hold a 5-year term provides.
What drives 3-year variable rates?
Like the 5-year variable, it moves with prime and the Bank of Canada, but the shorter term means you renegotiate sooner. Availability is thinner than the 5-year variable, so the lender mix that offers it matters.
How much does it cost to break a 3-year variable mortgage?
Three months' interest, the same cheap-exit advantage as any variable, paired here with an even shorter commitment.
Can I lock this rate before I buy?
Yes. Most lenders offer a 90-120 day rate hold on a pre-approval, so a rising market can't catch you, and many honour a lower rate if they drop. Start a pre-approval (no bureau pull to begin) and we'll hold your best 3-year variable rate.
Lock your best 3-year variable rate.
Free, no credit pull to begin. We shop 100+ lenders and hold your rate while you shop for the home.