Best 5-year variable mortgage rates in Ontario.
Today’s best 5-year variable rate in Ontario is 3.00% — about $3,019/month on a $797,486 home with 20% down. A 5-year variable is the term for borrowers who expect rates flat-to-lower and want the cheapest exit.
Who has the best 5-year variable rate in Ontario?
Marathon Mortgage Corp, at 3.00%. The lowest rates are usually insured pricing.
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 →
What would my payment be?
About $3,019/month. That’s Ontario’s average price of $797,486 with 20% down ($159,497), a $637,989 mortgage at today’s best 5-year variable rate of 3.00%, over 25 years with Canadian semi-annual compounding. That payment moves with prime over the term. Model your own price in the payment calculator.
| Term | Best rate | Est. monthly payment* |
|---|---|---|
| 5-Year Fixed | 4.14% | $3,405/mo |
| 5-Year VariableLowest | 3.00% | $3,019/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 does a 5-year variable cost on a typical Ontario home?
With the minimum down ($54,749), you pay about $3,656/month and $107,133 in interest over the 5-year term. Lenders test your income at 5.25%.
See the full 5-year cost: down payment, insurance, interest and balance
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 3.00%, a 25-year amortization and Canadian semi-annual compounding. The term figures cover the 5-year term only, and assume the rate stays at 3.00% 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 | $3,656/mo | $3,019/mo |
| Interest paid over the 5-year term | $107,133 | $88,485 |
| Principal repaid over the term | $112,201 | $92,670 |
| Balance owing at renewal (year 5) | $660,246 | $545,319 |
| Payment you must qualify at (5.25% stress-test rate) | $4,603/mo | $3,802/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 5.25% (the higher of your rate + 2% or 5.25%), not at 3.00%, 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, and what breaking it costs
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?
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.
Ontario lenders and closing costs
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.
Why get your Ontario 5-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
An Ontario bank shows you one 5-year variable rate sheet. We put your file in front of 100+ lenders, including TD and RBC.
Broker pricing
The rate brokers get is typically 15-30 bps below a bank's posted rate. You can't get it at a branch.
Built for Ontario
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. Land transfer tax, rebates and local lender fit are built in.
Your rate held 90-120 days
A pre-approval locks your 5-year variable rate while you shop, and many lenders honour a drop before you close.
No credit pull to start
We shop your Ontario 5-year variable rate and pre-qualify you without a hard credit check. FSRA-licensed advice in 15+ languages.
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 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.
Ontario 5-year variable rates — FAQ
What is the best 5-year variable mortgage rate in Ontario right now?
The best 5-year variable rate in our 100+ lender network for Ontario is approximately 3.00% as of Oct 24, 2026, which is about $3,019/month on the Ontario average price of $797,486 with 20% down over 25 years. Your personalized Ontario rate depends on your file — income, credit, loan-to-value, and property type. We shop every lender on one application to find your lowest.
Are Ontario 5-year variable rates different from the rest of Canada?
The headline rate is set nationally, but what you can actually get in Ontario differs: the provincial lender mix, Financial Services Regulatory Authority (FSRA) regulation, and local credit unions all shape pricing and qualification. 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.
Is a 5-year variable a good idea in Ontario?
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. You accept payment uncertainty in exchange for a cheaper exit and upside if rates fall.
How does breaking a 5-year variable mortgage work?
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.
What land transfer tax will I pay in Ontario?
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. Toronto purchases pay BOTH Ontario LTT AND Toronto Municipal LTT. Below $3 million the two schedules match, so the tax is effectively doubled. Above $3 million they diverge sharply: since 1 April 2026 the municipal tax runs its own luxury brackets — 4.4% from $3M, 5.45% from $4M, 6.5% from $5M, 7.55% from $10M and 8.6% above $20M — against a flat provincial 2.5%. On a $5 million purchase that is about $160,000 municipal against $111,000 provincial.
Can I lock this Ontario 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 Ontario 5-year variable rate.
Lock your best Ontario 5-year variable rate.
Free, no credit pull to begin. We shop 100+ lenders and hold your rate while you shop for the home.