Today’s Mortgage Rates updated as of October 7, 2025 1:54 pm
5-year fixed*
5-year Variable*
*Insured loans. Other conditions apply. Rate in effect as of today.
A 3-year variable mortgage rate offers interest rates that fluctuate based on the prime lending rate, with terms lasting three years. Unlike fixed rates, the payments or interest portion may change if the lender’s prime rate moves up or down. This mortgage option is ideal for Canadians who are comfortable with some risk and want the potential for lower rates during their term.
Whether you’re a first-time homebuyer, refinancing, or renewing your mortgage, understanding current trends and available options helps you make informed financial decisions.
This guide focuses on helping you navigate the Ontario mortgage market, offering insights into current rates, strategies for securing the best deal, and regional trends.
Mortgage brokers play a pivotal role in helping Canadians find tailored financing options, providing expert advice, and navigating the often complex mortgage market.
For more detailed information on mortgage types, costs, and rights, consult the Government of Canada – Financial Consumer Agency of Canada (FCAC).
Choosing a 3-year variable mortgage rate has unique advantages:
Learn more about today’s best mortgage rates in Canada.
| Lender | 3-Year Variable Rate (%) | Features |
|---|---|---|
| Big 5 Banks (Average) | 5.15% – 5.45% | Standard variable-rate terms |
| Online Lenders | 5.05% – 5.35% | Competitive rates with flexible options |
| Credit Unions | 5.10% – 5.40% | Personalized service, lower fees |
Variable rates are tied to the lender’s prime rate, which changes based on the Bank of Canada’s policy rate decisions. Here’s how it works:
| Metric | 3-Year Variable | National Average |
|---|---|---|
| Average Rate (2024) | 5.25% | 5.50% – 6.50% |
| Typical Loan Size | $365,000 | $390,000 |
| Approval Time | 3–7 Business Days | 3–7 Business Days |
At Citadel Mortgages, we specialize in connecting clients with flexible and competitive mortgage options.
Wide Lender Network:
Personalized Advice:
Expert Guidance:
Hassle-Free Process:
Using a mortgage broker that has access to some of the lowest mortgage rates in Canada, is key to ensure you have the best approval rate.
While 33% of non-homeowners believe they’ll never own*, our Citadel mortgage brokers are 100% confident they can make it happen. How? With our expert advice and guidance.
(5-years interest savings with Citadel Mortgages)**
(Interest savings with Citadel Mortgages)
(5-years interest savings with Citadel Mortgages)**
(Interest savings with Citadel Mortgages)
To qualify for the best 3-year variable mortgage rates, borrowers must meet these requirements:
A 3-year variable mortgage is best suited for:
Market Watchers:
Flexible Borrowers:
Short-Term Planners:
Perfect for homeowners planning to sell, refinance, or reassess their options within three years.
We compare mortgage rates from top lenders, including BMO mortgage rates, CIBC mortgage rates, RBC mortgage rates, TD Bank Mortgage Rates, and MCAP mortgage rates, alongside our exclusive Citadel Smart Home Plan mortgage rates. Let us simplify the process and help you secure approval quickly and stress-free!
At Citadel Mortgages, we recognize how important it is to stay informed about changing mortgage interest rates. Whether you’re purchasing your first home, refinancing, or renewing your mortgage, we’re here to guide you through the process with solutions that suit your financial needs, even in fluctuating rate environments.
From fixed to variable rates, we offer tailored solutions that help you secure the most competitive interest rates for your situation.
Our team monitors the Canadian mortgage market to provide insights on current rates, helping you make informed decisions.
We focus on finding solutions, even if you’ve faced credit challenges or financial setbacks.
Income constraints shouldn’t hold you back. We specialize in making homeownership accessible for Canadians in various financial situations.
Enjoy a smooth experience with quick approvals and clear communication every step of the way.
Secure today’s interest rates to avoid surprises if rates increase before your mortgage closes.
Consolidate high-interest debt into a single, lower-interest mortgage payment, saving you money and simplifying your finances.
Choose flexible payment terms that fit your budget, whether you prefer the stability of a fixed rate or the potential savings of a variable rate.
Refinance your mortgage to tap into your home’s equity for renovations, debt consolidation, or investment opportunities.
| Feature | 3-Year Variable | 3-Year Fixed | 5-Year Variable |
|---|---|---|---|
| Term Length | 3 Years | 3 Years | 5 Years |
| Interest Rate | Lower Potential | Stable | Similar Potential |
| Payment Stability | Fluctuates | Stable | Fluctuates |
| Flexibility | High | Moderate | High |
| Best For | Market Watchers | Medium-Term Stability | Long-Term Planners |
Staying updated on the Bank of Canada’s target overnight rate helps homeowners and buyers:
The Bank of Canada schedules eight interest rate announcements annually, providing updates on monetary policy.
With the Bank of Canada targeting inflation control, many Canadians face the dilemma of choosing between fixed and variable mortgage rates.
| Feature | Fixed Rate | Variable Rate |
|---|---|---|
| Payment Stability | Consistent payments for the term | Payments fluctuate with the prime rate |
| Interest Costs | Slightly higher but predictable | Lower initially but may increase |
| Risk Tolerance | Ideal for risk-averse borrowers | Suitable for those comfortable with rate changes |
| Market Outlook | Best if rates are expected to rise | Best if rates are expected to fall |
Rates typically change in response to adjustments in the Bank of Canada’s prime rate.
Yes, as payments or interest costs can increase if rates rise. However, they may offer savings if rates drop or remain stable.
Many lenders allow this option, though terms and conditions vary.
It depends on your risk tolerance. If you’re comfortable with potential rate changes, it can offer significant savings.
Use our mortgage calculator to gain a clearer picture of what you can expect in terms of monthly payments, interest costs, and amortization schedules. Simply input your loan amount, interest rate, and amortization period to get started. This tool provides estimates to help you make informed decisions as you explore different mortgage options.
A 3-year variable mortgage rate offers a unique blend of flexibility and potential savings, making it an excellent option for Canadians comfortable with fluctuating rates. This term is ideal for market watchers, short-term planners, and those looking to capitalize on potential rate decreases.
While variable rates come with inherent risks, the potential for lower payments and interest costs can be advantageous, particularly in a stable or declining interest rate environment. Understanding your financial situation, risk tolerance, and market trends is essential when choosing this type of mortgage.
At Citadel Mortgages, we specialize in helping Canadians navigate the complexities of mortgage rates and terms. Whether you’re looking for a 6-month fixed rate, a 5-year variable, or something in between, our team is here to provide personalized guidance and access to the best rates in Canada.
At Citadel Mortgages, we pride ourselves on offering expert, client-focused mortgage solutions that stand out in the industry. Here’s why you should choose us:
Our mortgage brokers are licensed and certified across multiple provinces, providing exceptional advice and service tailored to your unique needs. Our mortgage brokers are committed to delivering the highest standards of professionalism and expertise.
Unlike traditional commission-based models, our mortgage agents are evaluated based on client satisfaction and the quality of their advice. This ensures that you receive impartial guidance on the best mortgage options for your situation.
Citadel Mortgages offers competitive rates that help you save money over the life of your mortgage. Our team works diligently to find the most favorable terms to suit your financial goals.
We are dedicated to transforming the mortgage industry by offering a transparent, seamless process. Our 100% digital platform ensures that you can manage your mortgage application from start to finish with ease and confidence.
At Citadel Mortgages, our mission is to provide a positive, empowering, and transparent property financing experience. We simplify the mortgage process to make it as straightforward and stress-free as possible.
For personalized advice and the best mortgage rates in Toronto, contact our licensed and knowledgeable mortgage experts at Citadel Mortgages.
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