The rates on a 5-year variable mortgage in Ontario vary greatly from one day to the next. Because of this, it’s often tough for buyers to know when to push the button and lock in their loan. Fortunately, there is plenty of information out there to help you make an informed decision so you can get the lowest rate possible and save the maximum amount of money.

History Of 5-Year Variable Mortgage Rates Ontario

Historically, 5-year variable mortgage rates have been a lot higher than they currently are. You can thank the global recession for that one. While Canada fared decently in the last economic downturn that gripped the world, the uncertainty that surrounds other housing markets and the relative strength of the Canadian dollar has helped drive interest rates down to propel buyers back into the housing market.

Current Rates

mortgage rate up and down

You probably haven’t seen rates as low as they are today and odds are you won’t be seeing them again in the future. Buyers looking to get a new loan, refinance their existing loan, or renew their mortgage are in a great position to get significant savings on their 5-year variable mortgage rate.

The current rate for a 5-year variable mortgage rate is in the low two-percents. That means the cost of borrowing money is extremely low. The low rates are helping buyers get homes that they wouldn’t otherwise be able to afford.

Future of 5-Year Variable Mortgage Rates in Ontario

Unfortunately, there’s nowhere for the rates to go but up. That means you can bet that the rate you’re paying at the end of the 5-year term will be higher than the rate you would be paying today. Because so many are certain that the rates will go up, many buyers are shying away from 5-year variable mortgage rates and looking at fixed rate options instead. However, some pessimists believe the markets won’t recover quite so quickly and that a 5-year variable rate mortgage will still be a good bet.


When rates are low, you may be tempted to overspend on a mortgage. Don’t think that just because rates are low now that they will always be low. Remember that as the markets recover in Ontario and around the world, interest rates will pick back up. That means the low rate that’s helping you afford your home now can easily become a high rate that pushes you out of your home in six years when it’s time to renew your mortgage.