Best 5-year variable mortgage rates in Ontario.
Today’s best 5-year variable rate in Ontario is 3.44%. We compare 5-year variable rates across 100+ Canadian lenders for Ontario and lock your best on one application, with no bureau pull to start.
The best 5-year variable rate in Ontario today is approximately 3.44% — about $3,165/month on Ontario’s average price of $797,486 with 20% down over a 25-year amortization. A 5-year variable is the term for borrowers who expect rates flat-to-lower and want the cheapest exit. Ontario has the deepest lender competition in Canada — every monoline (MCAP, First National, RFA, B2B Bank), every Big-6, and 25+ credit unions actively bid.
Insured vs uninsured: the lowest 5-year variable rates are usually insured pricing: a purchase with less than 20% down, backed by CMHC, Sagen or Canada Guaranty. Uninsured files (20%+ down, homes over $1.5M, refinances) typically price higher. APR is shown only where the lender publishes one that differs from the rate.
Rates illustrative; your file (credit, income, LTV) sets your personalized rate. See all Ontario rates →
Ontario mortgage payments by term
| Term | Best rate | Est. monthly payment* |
|---|---|---|
| 5-Year Fixed | 4.14% | $3,405/mo |
| 5-Year VariableLowest | 3.44% | $3,165/mo |
| 3-Year Fixed | 3.99% | $3,352/mo |
| 3-Year Variable | 3.55% | $3,202/mo |
| 2-Year Fixed | 3.99% | $3,352/mo |
| 1-Year Fixed | 4.19% | $3,422/mo |
| 4-Year Fixed | 4.14% | $3,405/mo |
| 7-Year Fixed | 4.49% | $3,528/mo |
| 10-Year Fixed | 5.34% | $3,835/mo |
What a 5-year variable costs on a typical Ontario home
Worked on Ontario’s average price of $797,486 (Ontario province-wide average residential price, Ontario Real Estate Association (via CREA)) at today’s best 5-year variable rate of 3.44%, a 25-year amortization and Canadian semi-annual compounding. The term figures cover the 5-year term only, and assume the rate stays at 3.44% throughout: a variable rate moves with prime.
| Minimum down (insured) | 20% down (uninsured) | |
|---|---|---|
| Down payment | $54,749 (6.9%) | $159,497 (20.0%) |
| Default insurance premium (added to the mortgage) | $29,709 | None |
| Ontario sales tax on the premium (cash at closing) | $2,377 | None |
| Mortgage amount | $772,446 | $637,989 |
| Monthly payment | $3,832/mo | $3,165/mo |
| Interest paid over the 5-year term | $123,217 | $101,769 |
| Principal repaid over the term | $106,714 | $88,138 |
| Balance owing at renewal (year 5) | $665,733 | $549,851 |
| Payment you must qualify at (5.44% stress-test rate) | $4,688/mo | $3,872/mo |
Ontario Land Transfer Tax (LTT) on this price: $12,425, or $8,425 for an eligible first-time buyer. Paid in cash at closing, on top of the down payment.
Qualifying: lenders test your income at 5.44% (the higher of your rate + 2% or 5.25%), not at 3.44%, so the qualifying payment above is the one your income must support, together with property tax, heating and other debts. Run your own numbers in the affordability calculator.
Is a 5-year variable right for you in Ontario?
Who it suits. Borrowers comfortable with some payment movement in exchange for a usually-lower starting rate and a far cheaper break cost. It suits people who might move, refinance, or sell within the term, and those who believe the Bank of Canada's next moves are cuts rather than hikes.
What drives the rate. A 5-year variable moves with your lender's prime rate, which tracks the Bank of Canada's overnight policy rate. When the Bank cuts, your rate (and often your payment) falls within weeks; when it hikes, it rises. The variable-versus-fixed gap (the 'spread') widens and narrows with the market's rate outlook.
Breaking it early. The break penalty is only three months' interest, typically a fraction of a fixed mortgage's IRD, which is the single biggest reason mobile or uncertain borrowers choose variable.
The most popular variable term; its share swings with the rate cycle. You accept payment uncertainty in exchange for a cheaper exit and upside if rates fall.
What’s specific to Ontario
The Ontario rate market. Ontario has the deepest lender competition in Canada — every monoline (MCAP, First National, RFA, B2B Bank), every Big-6, and 25+ credit unions actively bid. This typically produces the sharpest discount-rate offers in the country.
Top Ontario lenders to compare. Ontario’s 5-year variable pricing is shaped by a distinct lender mix: TD, RBC, Scotiabank, MCAP, First National and others all bid for files here, and we shop the whole panel on one application. Foreign-buyer rules: Non-Resident Speculation Tax (NRST) of 25% applies to foreign buyers province-wide; combined with the federal foreign-buyer ban (extended to 2027), foreign purchases are largely paused.
Closing costs. On top of the rate, budget for ontario land transfer tax (ltt) — tiered tax of 0.5%–2.5% on purchase price, calculated at closing on the entire amount. First-time buyers can claim up to $4,000 in Ontario LTT rebate; Toronto purchases stack an additional municipal $4,475 FTHB rebate. Run the full number in our Ontario land transfer tax calculator.
A worked example for Ontario
On Ontario’s average price of $797,486 with 20% down ($159,497), the mortgage is $637,989. At today’s best 5-year variable rate of 3.44% over a 25-year amortization, that’s about $3,165/month using Canadian semi-annual compounding. That payment moves with prime over the term. Model your own price in the payment calculator.
Whatever your situation in Ontario
First home, renewal, refinance, self-employed or bruised credit: there's a 5-year variable path for your file, with the same 100+ lender network.
First-time buyers
5% down to your first Ontario home, with FHSA + RRSP HBP optimization.
Refinancing
Tap your Ontario 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, with A-lender, alt-A and private compared.
Bruised credit
B-lender and private paths now, with a mapped exit back to A-pricing.
New to Canada
Newcomer programs at the big banks; international credit accepted.
6 reasons to lock your Ontario 5-year variable rate through a broker
Why Ontario borrowers shop the whole market instead of signing their bank's first 5-year variable offer.
100+ lenders compete, not one
An Ontario bank shows you a single 5-year variable rate sheet. We put your file in front of 100+ lenders who bid for it, then pass on the volume pricing we hold as a brokerage.
Broker-channel pricing
The wholesale rate brokers access is typically 15-30 bps below a bank's posted rate. You can't get it by walking into a branch.
Built for the Ontario market
Ontario has the deepest lender competition in Canada — every monoline (MCAP, First National, RFA, B2B Bank), every Big-6, and 25+ credit unions actively bid.
Your rate held 90-120 days
A pre-approval locks today's 5-year variable rate while you shop, and many lenders honour a drop if rates fall before you close.
No bureau pull to start
We can shop your Ontario 5-year variable rate and pre-qualify you without a hard credit check, so comparing costs you nothing.
Rate Beat offer (conditions apply)
Rate-beat offer: if you bring a written, current 5-year variable offer from one of the six largest banks for the same product, term and amount, we will try to beat it or pay you $500 (keep it, or we'll donate it to your favourite charity). Conditions apply; see mortgagesquad.ca/rate-beat-guarantee. Our advice is free, because the lender pays our commission on funding.
Why shop your Ontario 5-year variable rate with us
- 100+ lenders on one application: banks, monolines, and Ontario credit unions like TD and RBC.
- Broker-channel rates 15-30 bps below posted, only a brokerage can access.
- Ontario-specific guidance: land transfer tax, rebates, and local lender fit built in.
- FSRA-licensed advice in 15+ languages.
Ontario 5-year variable rates — FAQ
What is the best 5-year variable mortgage rate in Ontario right now?
Are Ontario 5-year variable rates different from the rest of Canada?
Is a 5-year variable a good idea in Ontario?
How does breaking a 5-year variable mortgage work?
What land transfer tax will I pay in Ontario?
Can I lock this Ontario rate before I buy?
Lock your best Ontario 5-year variable rate.
Free, no bureau pull to begin. We shop 100+ lenders and hold your rate while you shop for the home.