Today’s Mortgage Rates updated as of April 15, 2026 12:38 pm
5-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 5-year term
Typically offers more flexibility than fixed rates
May reduce interest costs if rates decline or stay stable
Requires comfort with interest-rate risk
A 5-year variable mortgage rate is tied to a lender’s prime rate and can change during the term as interest rates move. This option offers flexibility and potential interest savings, but it also comes with exposure to rising rates.
At Citadel Mortgages, we help Canadians understand how 5-year variable mortgages work, the risks involved, and when this option makes sense compared to fixed-rate alternatives.
A 5-year variable mortgage is a mortgage term where:
The interest rate fluctuates based on changes to the prime rate
Payments may change, or amortization may adjust (depending on the lender)
The mortgage term lasts five 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 may offer lower initial rates but expose borrowers to interest-rate changes during the term.
Variable mortgage rates change when lenders adjust their prime rate, which is influenced by:
Bank of Canada policy rate decisions
Inflation trends
Broader economic conditions
Interest-rate decisions are guided by the Bank of Canada, which plays a central role in Canada’s interest-rate environment.
A 5-year variable mortgage may be suitable if you:
Are comfortable with interest-rate fluctuations
Want flexibility and potentially lower long-term interest costs
Have room in your budget to absorb rate increases
Plan to refinance, sell, or restructure during the term
Borrowers who need payment certainty may prefer fixed-rate mortgages.
Potential for lower interest costs over time
Greater flexibility than fixed mortgages
Often lower penalties to break than fixed rates
Can benefit if interest rates decline
Payments or amortization can change
Exposure to rising interest rates
Less predictability for long-term budgeting
Today’s Mortgage Rates updated as of April 15, 2026 12:38 pm
5-Year Variable Mortgage
Rate fluctuates with prime
Greater flexibility
More interest-rate risk
5-Year Fixed Mortgage
Stable payments
No rate fluctuation
Less flexibility
You can compare both options on our Best Mortgage Rates in Canada page.
Before choosing a 5-year variable mortgage, consider:
Your tolerance for payment changes
Whether your lender uses adjustable or static payments
How rising rates would impact your monthly budget
Your long-term mortgage strategy
Borrowers seeking flexibility with structure may explore alternative solutions.
“A 5-year variable mortgage can be a powerful strategy when rates are stable or declining, but borrowers must be financially prepared for rate increases and understand how their lender adjusts payments.”
Rates change based on adjustments to the Bank of Canada’s policy rate, typically a few times per year.
Yes, as payments or interest costs can increase if rates rise. However, they offer potential savings if rates drop or stay low.
Most lenders allow this option, though terms and conditions may apply.
It can be, particularly for those comfortable with potential payment fluctuations and aiming for lower initial rates.
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 focused 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, depending on their goals.
A 5-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.