3-Year Variable Mortgage Rates in Canada
The best 3-year variable mortgage rate in Canada today is 3.55%, on the insured shelf. That is prime minus 0.90%, with prime at 4.45%. Compare every 3-year variable rate we track below, by shelf and loan-to-value.
Which shelf are you actually shopping? Enter the numbers and we will filter the board to the rates you can really get.
Loan-to-value 90.0% · insured
Under 20% down, so default insurance is mandatory and the premium is added to the mortgage.
Lenders ask our rates only be disclosed to potential borrowers.
Login to browse all lender rates & offers for each term by program choice.
| Lender | Term | Category | Rate | APR | |
|---|---|---|---|---|---|
| Insured lender Sign in to see the lender | 3 yr variablePrime − 0.90% | Insured | 3.55% | — | Get this rate |
| Sign in to reveal | 3 yr variablePrime − 0.55% | Insured | 3.90% | — | Get this rate |
| Insurable lender Sign in to see the lender | 3 yr variablePrime − 0.40% | Insurable ≤80% | 4.05% | — | Get this rate |
| Sign in to reveal | 3 yr variablePrime − 0.40% | Insurable ≤80% | 4.05% | — | Get this rate |
| Sign in to reveal | 3 yr variablePrime − 0.25% | Insurable ≤75% | 4.20% | — | Get this rate |
| Sign in to reveal | 3 yr variablePrime − 0.25% | Insured | 4.20% | — | Get this rate |
No rates match that combination. Widen the filters — and remember the board is what we could verify this week, not every rate that exists.
Please Note: Some conditions may apply. Rates may vary from Province to Province. Rates are subject to change without notice. Posted rates may be high ratio and/or quick close, which differs from conventional rates. The mortgage rates are provided as guidance only, and the accuracy of these rates is not guaranteed. The rate provided by any financial institution listed, or any approval or decline you receive, will be based solely on your personal situation. You are strongly encouraged to speak with a licensed mortgage professional for the most accurate information and determine your eligibility.
Rates are the lowest we have collected for each combination and are not an offer or a commitment to lend by anyone. Every payment on this site uses semi-annual compounding, the Canadian standard.
What you are really buying with a variable
A variable rate is priced as a discount off prime. When the Bank of Canada moves, prime moves, and your rate moves with it — usually within a few days. What you get for that uncertainty is the cheapest exit in the market: three months' interest to break, no matter when.
Mid-length terms have been popular whenever the market expects rates to fall, since they avoid locking into a five-year at the top of a cycle.
Under 20% down
You put less than 20% down and default insurance is on the file. The lender carries no loss exposure, so these are the lowest rates on the board — but the premium is added to your mortgage.
20%+ down, up to $1.5M property value, 25-year amortization
You put 20% or more down and the file fits portfolio-insurance rules, so the lender can back-end bulk insure it at its own cost — on property values up to $1.5M. Priced between insured and uninsured, and tiered by loan-to-value.
Refinances, $1.5M+, 30-year amortization, rentals
The lender keeps the full risk: refinances, properties above $1.5M, amortizations past 25 years, and rentals. Rates sit highest here, typically 20 to 40 basis points above insured.
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How long a term should you take?
Term is how long the rate and the contract are locked, not how long you take to pay the mortgage off. They are different numbers and mixing them up is the commonest mistake on this subject.
| Term | What you are buying | Best for |
|---|---|---|
| 1 to 2 years | A short commitment at whatever the short end of the market costs today. You are back in the market soon, by design. | Somebody who expects their situation or the rate environment to change, and wants to be free to act. |
| 3 years | A middle position. Less exposure than five years, usually priced above the one-year. | A borrower who wants some certainty without signing away half a decade. |
| 5 years | The most commonly taken term in Canada, and usually the deepest discounting. | Somebody settled, who values a payment they can forget about. |
| 7 to 10 years | A long lock. Priced for it, and the break cost grows with the term. | A borrower who is certain they are staying and wants the rate risk gone entirely. |
A shorter term is not always cheaper. When the market expects rates to fall, short terms can price above long ones — read the board rather than assuming.
3-year variable mortgage questions
Is a 3-year variable mortgage right for me?
A variable makes sense if you can absorb a payment increase without stress and you may break the term early — variable penalties are three months' interest, versus an interest rate differential on a fixed that can run to five figures. It is a worse idea if a rate rise would genuinely hurt.
How is a 3-year term different from a 3-year amortization?
The term is how long this contract lasts — 3 years. The amortization is how long it would take to pay the mortgage off entirely, usually 25 or 30 years. At the end of the term you renew whatever is left. Almost nobody pays off a mortgage in one term.
What happens to my payment when prime moves?
It depends on the lender. Some adjust your payment; others keep the payment fixed and change how much of it goes to interest, which means a rate rise silently extends your amortization. Ask which kind you have — it matters a great deal in a rising market.
What is the penalty if I break it?
Three months' interest, on almost every variable in the market. On a $400,000 balance at 4.5% that is roughly $4,500.
Is a variable rate cheaper than a fixed rate?
Sometimes, and only in hindsight. A variable rate starts lower often enough, but what you pay over the whole term depends on where prime goes. The more reliable difference is the cost to break: a fixed mortgage is usually far more expensive to exit early.
Does choosing a variable rate let me borrow more?
No. Both are qualified at the stress-test rate — the higher of your contract rate plus 2% or 5.25% — so your maximum does not change.
Why is a 3-year rate sometimes higher than a 5-year?
Because terms are priced on what the market expects rates to do, not on length. When a fall is expected, lenders price short terms above long ones.
What is the difference between the term and the amortization?
The term is how long the contract and the rate are locked — typically one to five years. The amortization is how long the whole mortgage takes to repay, typically 25 years. You will sign several terms over one amortization.
Sources and how to read this board
Rates are collected from lender rate sheets and checked by the RateShop rate desk; the board's own as-of date is printed on it. The rules the shelves follow are set by OSFI Guideline B-20 (the qualifying rate and stress test), the Department of Finance mortgage insurance rules ($1.5M price cap, 25-year amortization on insured files) and the three insurers — CMHC, Sagen and Canada Guaranty. Variable rates move with the Bank of Canada policy rate, through prime.
The math is free. Acting on it is the point.
When you are ready to do something with these numbers, we will introduce you to a licensed broker who can put the file in front of lenders. Nothing here obliges you to.
