Five-year variable terms offer flexibility and potential savings but require tolerance for rate changes.
Direct answer
A 5-year variable mortgage has a five-year contract term while its interest rate moves with prime. The term length does not make the rate fixed. Compare the prime adjustment, whether payments change, trigger provisions, conversion pricing, and the cost of leaving early before relying on the initial discount.
A five-year variable mortgage usually creates a closed five-year commitment while the interest rate moves with lender prime. The contractual term controls maturity and exit rules; it does not guarantee the rate or payment for five years.
Compare the prime adjustment, payment type, compounding, prepayment privileges, and break penalty as one package. The deepest discount is not enough if the payment mechanics do not fit the household.
Many lenders permit conversion to a fixed term, but the offered rate may be the lender's current conversion rate rather than the sharpest market rate. The remaining fixed term may also need to meet a minimum length.
Treat conversion as a contractual option, not a guaranteed escape at a competitive price. Stress-test the variable mortgage as if you might need to hold it through volatility.
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Live rate snapshot
Showing the first 8 cards from 17 matching rates for Purchase · 5-year variable · $999,999 · $75,000 down.
ATB Financial
Standard
3.60%
5-year term
APR
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Client Rates · Our featured offers · 5 Year Variable High Ratio.
Marathon Mortgage
Insured
3.60%
5-year term
APR
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Marathon advertised starting rate; 5 year adjustable; insured/insurable; Prime minus 0.85%.
ATB Financial
ATB Standard
3.65%
5-year term
APR
Call for APR
Our featured offers
Manulife
Manulife Bank Select Hi - Ratio Program
3.65%
5-year term
APR
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Prospera
Standard
3.65%
5-year term
APR
Call for APR
Prospera
Standard
3.65%
5-year term
APR
Call for APR
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Prime-based discounts with scenario matching.
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Use trigger rate tools to plan for shifts.
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Compare effective costs with fixed options.
Reviewed rate context
This page is maintained by Pragmatic Mortgage Lending for Canadian borrowers comparing rate categories, lender fit, and product trade-offs. Rate tables can change without notice, so final advice still depends on the live lender file and approval conditions.
Reviewed by the Pragmatic Mortgage Lending broker team. Updated July 16, 2026.
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Some lenders allow conversion, but pricing depends on their conversion policy.
Payments may change whenever prime changes or at specific lender intervals.
