Quick answer: As of July 5, 2026, public market benchmarks show 5-year variable rates 3.25%. Variable rates can start lower than fixed rates, but payments or interest costs may change when lender prime rates change.
July 2026 benchmark snapshot
| Product | Public benchmark | Best-fit borrower |
|---|---|---|
| 3-year fixed | 3.84% | Wants stability with earlier renewal flexibility |
| 5-year fixed | 3.94% | Wants longer payment certainty |
| 5-year variable | 3.25% | Comfortable with prime-rate movement |
How variable pricing works
Variable mortgages are usually priced as prime plus or minus a discount. The Bank of Canada overnight rate influences lender prime, but each lender sets product details differently.
Who should be careful with variable
Variable may not fit borrowers who need absolute payment certainty or have limited budget room if rates rise. It can fit borrowers with stronger cash-flow flexibility and comfort with rate changes.
How to compare this rate properly
- Confirm whether the rate is insured, insurable, or uninsured.
- Compare prepayment privileges, portability, and penalty calculations.
- Use the Mortgage Wave calculator to test payment comfort.
- Get a personalized quote before relying on a public benchmark.
Related MortgageWave resources
Ontario rates hub
Compare all current researched best rates.
Payment calculator
Estimate monthly cost using Canadian compounding.
Renewal help
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Personalized quote
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FAQs
Public benchmarks show some variable offers 3.25%, below common 5-year fixed benchmarks in July 2026. Lower starting cost is not guaranteed lower total cost.
Your payment or interest allocation may change depending on the lender and product structure.
Many lenders allow conversion to a fixed term, but conditions and rates depend on the lender at the time.
Rates are public market benchmarks only, subject to change without notice, OAC, and not a guarantee of approval or lender availability.