Is 3.75% A Good Mortgage Rate In Canada?
A 3.75% mortgage rate is a good rate for a variable mortgage and an improbable one for a fixed mortgage in Canada right now. At prime of 4.70% it equals prime minus 0.95, which sits in the cheaper half of what borrowers reported in October 2026. Every fixed rate advertised around October 28 was higher, from about 4.34% up past 5%.
The word "good" needs a product attached. A 3.75% variable and a 3.75% fixed would be two different stories, and only one of them exists. This post sets 3.75% against the variable board, the advertised fixed rates, and the payment gap, and then says who is likely to see it.
What 3.75% Means At The New Prime
At 4.70% prime, 3.75% is a discount of 0.95. That is better than the typical renewal letter and shallower than the deepest broker quote in October. The board's range ran from prime minus 0.65 to prime minus 1.10, the latter including a broker quote on October 28 at 3.35% against the old 4.45% prime.
Most variable rows were quoted when prime was 4.45%, so a posted 3.75% back then was prime minus 0.70. The RBC renewal row shows the problem: a 5-year variable at 3.75% from RBC on October 23 is about 4.00% now, if the discount holds. The number is the same on paper and 0.25 away in practice. See prime rate in Canada for how that happened.
3.75% Against Advertised Fixed Rates
The comparison below uses $500,000 over 25 years. The fixed rates are advertised around October 28 from aggregator reports and the big banks' own specials; none is a quote for you.
| Option | Rate | Monthly payment | More than 3.75% |
|---|---|---|---|
| Variable at prime minus 0.95 | 3.75% | $2,562.78 | base |
| RBC renewal row, if the discount holds | 4.00% | $2,630.10 | $67.32 |
| Lowest advertised 5-year fixed, insured | 4.49% | $2,764.59 | $201.81 |
| BMO and CIBC 5-year specials | 4.84% | $2,862.65 | $299.87 |
| RBC 5-year special | 4.89% | $2,876.79 | $314.01 |
The 3.75% payment is $201.81 below the cheapest advertised fixed and $314.01 below RBC's special. Over five years of payments that is $12,108.35 against the cheapest fixed, which is what a variable pays you for taking rate risk.
Is 3.75% A Good Fixed Rate?
It would be exceptional, and no 3.75% fixed row is on the board. Around October 28 the lowest advertised 3-year fixed was about 4.44% and the lowest 5-year fixed about 4.34% to 4.59%. On the board, most 3-year rows ran 4.14% to 4.89%, with one 4.14% row carrying extra fees. The lowest was a writer who said they had a 3.90% 3-year fixed on October 23, unverified and with no lender named. Treat any fixed offer near 3.75% with scepticism and ask what it includes: a short term, an unusual product, or a rate without the fees that make it work. A cash-back mortgage or a rate that needs a balance transfer to get it deserves reading carefully.
For a 3-year fixed near the advertised floor, is 4.43% a good three-year fixed works through payments for one reported row, and the hub at what is a good mortgage rate in Canada lays out the bands.
Who Gets 3.75% Today
The board gives a hint. Rows at or deeper than prime minus 0.95 came from fresh approvals, a broker quote and one renewal offer with no lender named: a BMO approval at 3.45%, a Scotiabank approval at 3.40%, a broker quote at 3.35% and a 3.35% renewal offer on October 21. Quotes on a purchase with 25% down came in at 3.55% and 3.60%, prime minus 0.90 and 0.85. Rows nearer prime minus 0.70 came from an RBC renewal offer, an investment property and a broker pre-approval. None of this is a rule. A 5-year variable of 3.75% at the old prime was a shallow discount; as 3.75% at the new prime it is a better-than-typical one.
That is a function of the file, not the calendar: credit, loan-to-value, insured or uninsured, property type and where the application comes in. Aggregators advertised uninsured 5-year variables around 3.64% to 4.29% against the old prime. If that range moved up with prime it would be about 3.89% to 4.54%, so a 3.75% on an uninsured file would sit below it. The insured or uninsured guide explains the split.
The Risk Behind A Good Variable Rate
A variable rate can rise. BMO expects another 25 point hike in January 2027, CIBC sees likely one more and not above 2.75% overnight, and Desjardins also expects one more. Those are their views. If prime rose by 25 points more and the discount held, 3.75% would become 4.00% and the payment on $500,000 would go from $2,562.78 to $2,630.10.
The penalty to leave is usually three months' interest. On $500,000 at 3.75% that is $4,687.50. A fixed rate, by comparison, is usually the greater of three months' interest or an interest rate differential, which the big banks often compute from posted rates and can be much larger. The fixed or variable guide and is prime minus 1% a good variable rate take the comparison further.
3.75% Next To Fixed Offers On The Board
The 3-year fixed rows on the board give a closer comparison than the posted rates. On October 28 a borrower reported 4.44% from RBC, another 4.44% available at BMO, and a broker offered 4.59% with National Bank. At 4.44% on $500,000 the payment is $2,750.71, which is $187.93 more than the 3.75% variable. At 4.59% it is $2,792.44, $229.66 more.
A 3-year term and a 5-year variable are not the same commitment. The fixed payment is certain for three years, then the lender reprices the balance at whatever rates are then. The variable is reset every time prime moves and then stays variable for five. Neither is the safe option in a universal sense. The 3.75% gives up certainty for about $187.93 a month, and that is the whole trade.
When 3.75% Stops Being Good
Good is relative to the next best option on the same file. If the same lender would give prime minus 1.10, then prime minus 0.95 leaves $39.96 a month on the table at $500,000. If a fixed rate at 4.34% were available on the same file, the premium for certainty would be $160.29 a month. Both depend on a quote that is not yet in hand, so the useful step is to collect those two quotes, not to judge 3.75% alone.
What To Ask A Broker
Do not ask whether 3.75% is good. Ask what the lender's discount is on your file and whether it was written against 4.45% or 4.70% prime. If the quote is a fixed 3.75%, ask what the fine print says. Then ask for the best variable and the best fixed for the same file, with the payment shown for each at the amortization you plan to use.
A licensed mortgage broker can do the price comparison across lenders. Request cheaper rates and put the discount you hold, or the renewal letter's number, in the message so the broker knows what to beat. If the letter is the thing in your hand, the renewal timing guide covers the dates.
Questions
Is 3.75% a good mortgage rate in Canada?
For a variable rate, yes: at prime of 4.70% it is prime minus 0.95. No fixed rate that low was advertised around October 28; the lowest 5-year fixed was about 4.34% to 4.59%.
What was the RBC 3.75% variable renewal row?
A 5-year variable reported October 23, 2026, written against 4.45% prime. If the discount holds it is about 4.00% now.
How much cheaper is 3.75% than a 4.49% fixed?
On $500,000 over 25 years, about $201.81 a month: $2,562.78 against $2,764.59.
Can a variable rate at 3.75% go up?
Yes, whenever the lender changes prime. BMO, CIBC and Desjardins have each said they expect one more increase after October 28.