Compare the best variable open mortgage rates for free.

Hoping to find a variable open mortgage with zero fees? Unfortunately, that's not realistic anywhere in Canada. Every mortgage comes with some combination of costs, and a variable open mortgage is no different when it comes to closing.

Where this product does stand apart is on the back end. Since you're not locked into a term or a rate, there's no prepayment penalty to worry about at all, not even the simplified version that applies to closed variable mortgages.

Most fees fall under your closing costs, which typically run between 1.5% and 4% of your home's purchase price. These usually include:

• Mortgage default insurance: Required if your down payment is under 20%, this insurance (from CMHC, Sagen, or Canada Guaranty) protects the lender if you default. Premiums are usually rolled into your monthly payments, though you can pay them upfront instead.
• Provincial sales tax (PST): Homebuyers in Ontario, Quebec, and Saskatchewan pay sales tax on their default insurance premium at closing.
• Interest adjustment costs: If your closing date falls mid-month, you may owe interest for the days before your first regular payment kicks in.
• Appraisal fee: Lenders typically require a home appraisal before approving your mortgage, and this cost usually falls on the buyer.

You'll also want to budget for other closing-related costs, like legal fees, land transfer tax, and property tax adjustments.

No prepayment penalties, ever

This is the whole point of a variable open mortgage. You can increase your payments, make lump-sum payments, or pay off the entire balance at any time, without owing a penny in penalties. Combine that with a rate that moves with the market, and you get the most flexible mortgage structure available in Canada.

That flexibility isn't free, though. Because the lender is taking on more uncertainty with no penalty to fall back on, this is generally the most expensive of the four basic mortgage structures (fixed or variable, open or closed) in terms of the rate you'll pay.

LowestRates.ca can help you compare today's best variable open mortgage rates from top lenders across Canada. Just use the mortgage quoter at the top of the page.

No single lender offers the best rate to every borrower. Variable open rates move with the lender's prime rate, but the specific discount, or in some cases premium, applied to prime depends on your own financial profile.

Lenders tend to offer their best rates to borrowers who:

• Have a total debt service ratio of 44% or less, and a gross debt service ratio of 39% or less
• Can pass the mortgage stress test
• Have a strong credit score
• Can put down a sizable down payment
• Have stable, verifiable income

Meeting these benchmarks widens the pool of lenders competing for your business, which usually means a better rate.

Keep in mind that variable open rates sit well above closed variable rates and often above fixed closed rates too, since you're paying for both rate flexibility and unlimited prepayment freedom at once. So the more useful question isn't just "what's the lowest variable open rate," but "is the flexibility worth the premium for how long I actually plan to hold this mortgage."

Both can help you land a competitive variable open mortgage rate. Which one makes more sense depends on more than just the rate itself.

Brokers

Brokers work with multiple lenders at once, so they can shop your application around and compare rates on your behalf. They're usually paid by the lender rather than charging you directly, and their volume relationships can sometimes get you a better deal than approaching a bank branch on your own. Since variable open mortgages are a less common product, a broker's familiarity with which lenders even offer them can save you time.

Banks

Going directly to a bank works well if you value an existing relationship or brand familiarity. If you're already a customer, the bank may have faster access to your financial history, which can speed up approval. Keep in mind banks only offer their own products, so comparing rates means checking multiple banks yourself, and not every bank offers variable open terms as a standard product. Banks also tend to have stricter approval criteria, which can be a hurdle for self-employed borrowers or those with less conventional income.

Finding the best mortgage product

Rather than committing to one path before seeing your options, compare rates from both banks and brokers side by side. LowestRates.ca lets you do exactly that, so you can find the variable open mortgage that fits your needs.

A variable open mortgage is a niche product, and it's usually not the right fit for a typical long-term homeowner. It tends to make the most sense as a short-term, tactical choice rather than a default option.

It can work well for borrowers who plan to sell their home soon, expect a windfall like an inheritance or business sale, or are actively paying down debt aggressively and want the freedom to throw extra money at their mortgage without any restriction. It's also sometimes used strategically by borrowers who believe rates are about to drop further and want to avoid being locked into a term while they wait to switch into a better closed product.

Because of the rate premium, most lenders and brokers suggest holding a variable open mortgage for a matter of months rather than years. The longer you hold one, the more that premium adds up, and the less the flexibility tends to be worth it.

For most homebuyers planning to stay in their home for the full term and make steady payments, a variable closed or fixed closed mortgage will usually cost less overall, since both offer meaningful prepayment privileges without the full rate premium of an open product.

To see how variable open mortgage rates stack up against your other options, use LowestRates.ca to start comparing today.