1-Year Fixed Mortgage Rates

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Mortgage Amount If you are buying a home, the mortgage amount is the home price, minus your down payment, plus CMHC insurance if your down payment is less than 20%. If you are renewing or refinancing your mortgage, your mortgage balance is the value of your the mortgage.
Type Please tell us which type of mortgage rate you want. A fixed mortgage rate is one that stays the same throughout the duration of your mortgage term. A variable mortgage rate is attached to Prime, which means it will fluctuate if Prime goes up or down. An open mortgage is one that can be prepaid anytime without penalty, but comes with higher rates. And a cash back mortgage gives you the option to borrow some extra cash when you buy your home. Term The mortgage term is the amount of time a home buyer commits to the rules, conditions and interest rate agreed upon with the lender. The term can be anywhere from six months to 10 years, with a 5-year mortgage term being the most common duration. Location Please ensure your location is correct in order to find the best rates available in your area.
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  years
Type Please tell us which type of mortgage rate you want. A fixed mortgage rate is one that stays the same throughout the duration of your mortgage term. A variable mortgage rate is attached to Prime, which means it will fluctuate if Prime goes up or down. An open mortgage is one that can be prepaid anytime without penalty, but comes with higher rates. And a cash back mortgage gives you the option to borrow some extra cash when you buy your home. Term The mortgage term is the amount of time a home buyer commits to the rules, conditions and interest rate agreed upon with the lender. The term can be anywhere from six months to 10 years, with a 5-year mortgage term being the most common duration. Location Please ensure your location is correct in order to find the best rates available in your area.

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Type Please tell us which type of mortgage rate you want. A fixed mortgage rate is one that stays the same throughout the duration of your mortgage term. A variable mortgage rate is attached to Prime, which means it will fluctuate if Prime goes up or down. An open mortgage is one that can be prepaid anytime without penalty, but comes with higher rates. And a cash back mortgage gives you the option to borrow some extra cash when you buy your home. Term The mortgage term is the amount of time a home buyer commits to the rules, conditions and interest rate agreed upon with the lender. The term can be anywhere from six months to 10 years, with a 5-year mortgage term being the most common duration. Location Please ensure your location is correct in order to find the best rates available in your area.
More options
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  years

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Location Please ensure your location is correct in order to find the best rates available in your area.
Rate Provider Hold until Prepayment options Payment
2.09% MortgagePal.ca
Sep 22
No pre-approval
20 % Lump Sum 20 % Regular $ Get this rate
2.09% CanWise Financial
Lic. 12530
Sep 22
No pre-approval
15 % Lump Sum 15 % Regular $ Get this rate
2.25% Coast Capital Aug 23
No pre-approval
20 % Lump Sum 100 % Regular $ Get this rate
2.29% VIVID Mortgage Verico
Jun 24
No pre-approval
20 % Lump Sum 20 % Regular $ Get this rate
2.79% MCAP Sep 22 20 % Lump Sum 20 % Regular $ Get this rate
2.84% CIBC Aug 23 10 % Lump Sum 100 % Regular $ Get this rate
2.89% Bank of Montreal Aug 23 20 % Lump Sum 20 % Regular $ Get this rate
2.89% Laurentian Aug 23 15 % Lump Sum 15 % Regular $ Get this rate
2.99% TD Bank Sep 22 15 % Lump Sum 100 % Regular $ Get this rate
3.14% HSBC Aug 23
No pre-approval
20 % Lump Sum 20 % Regular $ Get this rate
3.14% RBC Royal Bank Sep 22 10 % Lump Sum 100 % Regular $ Get this rate
3.14% National Bank Aug 23 10 % Lump Sum 100 % Regular $ Get this rate
3.14% PC Financial May 25
No pre-approval
0 % Lump Sum 0 % Regular $ Get this rate
3.19% Tangerine Jun 24 25 % Lump Sum 25 % Regular $ Get this rate
3.29% Scotiabank Jul 24 15 % Lump Sum 15 % Regular $ Get this rate
No pre-approval
Lump Sum N/A Regular N/A Get this rate

1-year Fixed Mortgage Rates

Historical 1-Year Fixed Mortgage Rates From 1980 - Today


1-year fixed mortgage rates defined

The mortgage term, in this case one year, is the length of time your mortgage rate is in effect. If you select a 1-year fixed rate, you will be able to select a new mortgage type, provider and associated mortgage rate at no penalty come the end of the year.

The mortgage term you choose depends on your expectations of future interest rates. For example, if you think mortgage rates will go up, you may want a longer 5-year term to lock in the current low rate. However, if you feel interest rates will fall, or you want to renegotiate your mortgage in a year's time, you would consider a 1-year mortgage rate.


Comparing 1-year fixed mortgage rates

Most consumers are uncertain which direction mortgage rates will take in the near future. Further, many are unsure if variable or fixed mortgage rates will better serve their financial situation; so, you can select a 1-year fixed rate and observe the market.

Since 1-year fixed mortgage rates are almost always lower than 5-year fixed rates, in falling or flat interest rate environments, some consumers continually lock in to a 1-year fixed mortgage rate year after year. However, a similar strategy can be achieved through variable mortgage rates, which are usually lower than 1-year fixed mortgage rates and can always be converted to a fixed mortgage rate at no charge.

1-Year Fixed vs. Longer Term Mortgage Rates From 2006 - Today

Some home owners opt for a 1-year fixed mortgage rate because they plan to move in a year. The problem with this strategy is that unless the home owner is moving in exactly one year, they will incur a penalty for breaking their mortgage early. Thus, a variable mortgage rate often makes sense in this case as the interest rate is often lower, and the refinance penalty, three months interest, will be lower than refinancing a fixed mortgage.


Popularity of the 1-year fixed mortgage rate

Though fixed rate mortgages are very common, representing 66% of all mortgages, the 1-year mortgage term is one of the least popular terms, representing only 6% of the Canadian market. The popularity of 1-year mortgage rates in Canada does not vary dramatically by age.

6% of Canadians have a 1-year term1
TERM Length Age Group
18-34 35-54 55+ All Ages
1 YR 5% 7% 6% 6%
2-4 YR 27% 18% 12% 20%
5 YR 66% 65% 69% 66%
6-10 YR 3% 9% 10% 7%
>10 YR 0% 0% 2% 1%

References and Notes

  1. Annual state of the Residential Mortgage Market in Canada, CAAMP, 2010

Current Mortgage Rates