Today’s Mortgage Rates updated as of April 20, 2026 12:07 pm
3-Year Variable*
*Insured mortgage rates only. Conditions apply. Rates are current as of today and subject to change without notice. Applicable to high-ratio purchase and renewal transactions with loan-to-value (LTV) ratios greater than 80.01% and up to 95%. Certain programs may also be available for insured files at 65% LTV and below, subject to insurer and lender guidelines on OAC.
Interest rate can rise or fall during the 3-year term
Typically offers more flexibility than fixed rates
May result in lower interest costs if rates decline
Requires comfort with interest-rate risk
A 3-year variable mortgage rate is tied to the lender’s prime rate and can change during the term as interest rates move. This option is designed for borrowers who value flexibility and are comfortable with some level of payment or rate fluctuation.
At Citadel Mortgages, we help Canadians understand how variable mortgage rates work, the risks involved, and when a 3-year variable mortgage makes sense compared to fixed-rate options.
A 3-year variable mortgage is a mortgage term where:
The interest rate fluctuates based on changes to the prime rate
Payments may change, or the amortization may adjust (depending on the lender)
The mortgage term lasts three years
At the end of the term, the mortgage must be renewed, refinanced, or paid out based on market conditions and your financial goals.
According to the Financial Consumer Agency of Canada, variable-rate mortgages can offer lower initial rates but expose borrowers to interest-rate changes during the term.
Variable mortgage rates move when lenders adjust their prime rate, which is influenced by:
Changes to the Bank of Canada’s policy rate
Inflation trends
Broader economic conditions
Interest-rate decisions are guided by the Bank of Canada, which plays a central role in shaping Canada’s interest-rate environment.
A 3-year variable mortgage may be suitable if you:
Are comfortable with interest-rate fluctuations
Want flexibility and potentially lower interest costs
Expect interest rates to remain stable or decline
Plan to refinance, sell, or restructure within a few years
Borrowers who need payment certainty may prefer fixed-rate mortgages.
Potential for lower interest costs over time
Often lower penalties to break compared to fixed rates
Greater flexibility
May benefit if rates decline
Payments or amortization can change
Exposure to rising interest rates
Less predictability than fixed mortgages
Today’s Mortgage Rates updated as of April 20, 2026 12:07 pm
3-Year Variable Mortgage
Rate fluctuates with prime
Greater flexibility
More interest-rate risk
3-Year Fixed Mortgage
Stable payments
No rate fluctuation
Less flexibility
You can compare fixed and variable options on our Best Mortgage Rates in Canada page.
Before choosing a 3-year variable mortgage, consider:
Your tolerance for payment changes
How rising rates would impact your budget
Whether your lender uses adjustable or static payments
Your long-term mortgage strategy
Borrowers seeking both flexibility and structure may explore alternative options.
“A variable mortgage can be a powerful tool when used correctly, but it requires discipline. Borrowers should be financially prepared for rate increases and plan ahead before choosing this option.”
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.
They often start lower, but this can change depending on market conditions.
Yes. Depending on the lender, payments or amortization may adjust when rates change.
Typically, yes — but lender terms vary.
Simplify your financial planning with our full calculator suite:
When you work with Citadel Mortgages, you benefit from:
Access to banks, credit unions, and alternative lenders
Clear explanations of variable-rate risk and lender policies
Mortgage advice based on strategy, not just rates
Support before, during, and after renewal
Some borrowers also explore long-term mortgage planning strategies, such as a 2-in-1 mortgage structure, depending on their goals:
A 3-year variable mortgage offers flexibility and potential savings for the right borrower. Citadel Mortgages helps you compare options, understand risks, and choose a mortgage aligned with your plans.