Compare the best 1-year fixed mortgage rates for free.

On average, Canadians save thousands of dollars per year by comparing rates with us.

Find the best 1-year fixed mortgage rate in just 3 minutes.

30,768 Canadians

have compared rates and saved money over the last 24 hours

What our users say:

November 23
5 stars amazing
5 stars amazing
Chris Companion
November 15
Excellent
Very happy to communicate with you
Muksitur Choudhury
November 12
Easy, simple and saves you money
Easy, simple and saved money - what more could you ask for?
Mark
November 11
Take a time and understand the situation
You took enough time to discuss the situation and made it best possible way
Suryakant Patel
November 11
Thank you I find out a little bit…
Thank you I find out a little bit cheaper rate
Someone in Canada
November 11
process was easy and professional
The process was easy and professional
James Robichaud
November 8
Everyone is great
Everyone is great. They got back as soon as I made the request. They did all to ...
customer
November 7
Super fast and helpful service from a…
Super fast and helpful service from a great broker
VAN LE
November 6
They were able to give me great service…
They were able to give me great service fairly quickly
Matthew DeWitt
November 5
Quick and easy results too save money
Quick and easy results too save money
John
November 4
Very helpful!!
Very helpful!!
Skylar Roberge
November 4
Excellent
Fast and efficient
JeanMarc Marchand
November 3
LowestRates.ca ROCKS
quick, easy and best of all saves people money I have referred at least a dozen ...
Rich Simo
November 1
The young man was very courteous and…
The young man was very courteous and professional. We didn't qualify due to low...
Teresa Penning
October 29
Good service by Barrett Sinider
Good service by Barrett Sinider
Kamran Butt

How comparing mortgage quotes works. Hint: it’s free!

Compare

Next, we’ll show you quotes from 50+ Canadian banks and brokers. It’s free, with no commitment.

Save

When you find the best quote, secure your rate by talking to a licensed broker or agent.

The best current mortgage rates in Canada

Check out today's best mortgage rates in Canada by type and term.

Rates are based on an average mortgage of $300,000
 Insured ?

The rates in this column apply to borrowers who have purchased mortgage default insurance. This is required when you purchase a home with less than a 20% down payment. The home must be owner-occupied and the amortization must be 25 years or less.

80% LTV ?

The rates in this column apply to mortgage amounts between 65.01% and 80% of the property value. The home must be owner-occupied and have an amortization of 25 years or less. You must have purchased it for less than $1 million. These rates are not available on refinances. Refinances require "Uninsured" rates.

65% LTV ?

The rates in this column apply to mortgage amounts that are 65% of the property value or less. The home must be owner-occupied and have an amortization of 25 years or less. You must have purchased it for less than $1 million. These rates are not available on refinances. Refinances require "Uninsured" rates.

Uninsured ?

The rates in this column apply to purchases over $1 million, refinances and amortizations over 25 years. More info on the differences between insured and uninsured rates.

Bank Rate ?

Bank Rate is the mortgage interest rate posted by the big banks in Canada.

 
1-year fixed rate
Insured
4.99%
80% LTV
5.6%
65% LTV
5.6%
Uninsured
5.99%
7.49%
 
2-year fixed rate
Insured
6.09%
80% LTV
5.64%
65% LTV
5.64%
Uninsured
6.34%
7.09%
 
3-year fixed rate
Insured
5.64%
80% LTV
5.69%
65% LTV
5.69%
Uninsured
5.79%
6.7%
 
4-year fixed rate
Insured
5.49%
80% LTV
5.59%
65% LTV
5.59%
Uninsured
5.54%
6.49%
 
5-year fixed rate
Insured
5.34%
80% LTV
5.49%
65% LTV
5.49%
Uninsured
5.49%
5.84%
 
7-year fixed rate
Insured
5.49%
80% LTV
5.44%
65% LTV
5.44%
Uninsured
6%
6.7%
 
10-year fixed rate
Insured
6.14%
80% LTV
6.14%
65% LTV
6.14%
Uninsured
6%
7.25%
 
3-year variable rate
Insured
6.1%
80% LTV
6.5%
65% LTV
6.5%
Uninsured
6.1%
8.6%
 
5-year variable rate
Insured
5.95%
80% LTV
6.1%
65% LTV
6.1%
Uninsured
6.1%
6.95%
 
HELOC rate
Insured
7.2%
80% LTV
7.2%
65% LTV
7.2%
Uninsured
7.2%
N/A
 
Stress test
Insured
6.99%
80% LTV
7.44%
65% LTV
7.44%
Uninsured
7.49%
N/A

1-year fixed-rate mortgages in Canada: what you need to know.

Most mortgage shoppers think in terms of the best 4-year or 5-year deal. Why sign up for a 1-year fixed-rate mortgage — even one with a fantastic interest rate — when you’ll only enjoy the benefit for 12 months?

Well, a 1-year mortgage is a no-brainer if that’s all you need to pay off your house. But there are other reasons to consider a short-term mortgage. A 1-year fixed-rate mortgage can be used in place of a variable-rate mortgage, for example. This can be handy when a 1-year fixed mortgage has a lower interest rate than its variable counterpart.

Moreover, you’ll be able to renew whatever mortgage best meets your current needs — fixed or variable, open or closed, short term or long term.

If you’re looking for comparisons of 1-year fixed mortgage rates, here’s how LowestRates.ca can help.

Most Canadian consumers choose 3 or 5-year mortgages. As a result, these are the mortgage terms we compare in our digital marketplace.

We will connect you to a broker who can compare 1-year fixed mortgage rates from the top lenders in Canada, including the country’s largest banks for you.

We recommend applying for a 3-year mortgage in this instance; the rates on a 3-year mortgage are more comparable to the rates on a 1-year mortgage than they are for a longer-term mortgage (5 years, for example). 

It takes three minutes or less to get mortgage quotes on LowestRates.ca. We offer the ability to compare mortgage rates, whether you’re in the market to get your first mortgage or if you’re renewing or refinancing your current one.

Intrigued? Then read on. We’ll answer your questions about 1-year fixed mortgages — then we’ll help you find the best current 1-year fixed mortgage rates.

Your questions about 1-year fixed-rate mortgages, answered.

When should you consider a 1-year fixed-rate loan?

A 1-year fixed-rate mortgage is a very specialized mortgage product. A year tends to fly by — particularly during an exciting time like purchasing and moving into a new home. So, choosing a 1-year fixed rate will have you thinking about your renewal very quickly. Because of that, 1-year fixed rates are typically considered by borrowers who only plan on staying in their home for a year or those who believe rates will fall within the next year (which can be hard to predict). If you’re interested in a short-term mortgage, a more common option is a 3-year fixed rate. It offers the low rate of a shorter term, but also provides a little more length, meaning you won’t have to shop for a new mortgage so soon after purchasing your home.

Are 1-year fixed-rate mortgages better than other mortgage terms?

One-year fixed rate mortgages are best for a very particular type of borrower — those who, for whatever reason, only need a mortgage for a year. If you only have a year left on your mortgage, then 1-year fixed rates are the best option for you. However, if you’re a more recent homebuyer, you might be better served with the security offered by a longer-term mortgage, since your rate will be locked in for a longer period.

What is a good 1-year fixed mortgage rate?

A good mortgage rate is all about perspective, and is based on what a borrower qualifies for. Lenders use several factors to determine what rates to offer borrowers. These factors determine what a lender considers the creditworthiness of a borrower to predict how likely they are to repay their mortgage. Lenders will look at a homebuyer’s credit history and credit score, income and employment, and their debt service ratios, among other things. Having a stable income and good credit history will help borrowers qualify for a good mortgage rate.

How is the 1-year fixed mortgage rate set?

Fixed mortgage rates are influenced by the Government of Canada’s bond market. Banks and lenders use both mortgages and bonds to generate profits and they use their profits from bond investments to fund their mortgages. They will calculate the interest they earn on bonds to determine what interest rates to offer for their fixed rate mortgages. The relationship between bond prices and mortgage rates is a delicate economic balance that is constantly fluctuating, which is the reason that fixed rates tend to change over time.

How much can you save comparing 1-year fixed rates in Canada with LowestRates.ca?

LowestRates.ca has helped our users save $1 billion in interest and fees. Because mortgages are used to pay off such expensive investments (homes), saving just a few basis points (fractions of a percent) on a mortgage can end up saving a homeowner thousands of dollars over the life of their mortgage. Even a savings of less than $50 per month ends up being a savings of tens of thousands of dollars over a mortgage that is amortized over 25+ years. That’s why it’s important to compare mortgage rates, whether you’re purchasing your first home or renewing an existing mortgage.

Mortgage news

Read More Like This