Why are more Canadians choosing variable mortgages? Because for the first time since 2022, going variable is both cheaper and increasingly the default. Variable-rate mortgages now make up 36% of all mortgages outstanding, while 5-year fixed has slipped to 20%, per the Bank of Canada.

The reversal is sharper in new lending. CMHC reports variable reached 42% of newly extended loans at chartered banks by February 2026, against 11% fixed. The driver: variable rates fell below fixed in late 2025 for the first time in years. As of September 3, 2026, average fixed sits at 4.62% versus 3.95% variable, while the Bank of Canada holds at 2.25%.

But the national number can't tell you how much this matters to your household: that depends on your mortgage size.…

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