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Find the Best 1-Year Fixed

Mortgage Rates in Canada

Compare the latest 1-year fixed mortgage rates from major banks, credit unions and mortgage brokers.

Today's top rates in:

5-Year Variable
4.85%
5-Year Fixed
4.24%
Select one of the following to get started!

Compare 1-year fixed mortgage rates from lenders across Canada

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The Best Mortgage Rates in Canada

Evaluate Canada’s best 1 year fixed mortgage rates in one place. You can compare the most current 1 year fixed mortgage rates and monthly payments from 175+ banks and lenders across Canada

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Rates are based on an average mortgage of $500,000 and subject to change based on filter criteria.

Lender tooltip icon Insured tooltip icon Insurable tooltip icon Uninsured tooltip icon
Lendwire Inc.
Lendwire Inc.
4.04% grey tooltip icon
$2,640.95 / month
4.24% grey tooltip icon
$2,695.56 / month
4.24% grey tooltip icon
$2,695.56 / month
Lendwire Inc
Lendwire Inc
4.04% grey tooltip icon
$2,640.95 / month
4.24% grey tooltip icon
$2,695.56 / month
4.24% grey tooltip icon
$2,695.56 / month
MMG Mortgages
MMG Mortgages
4.14% grey tooltip icon
$2,668.19 / month
4.44% grey tooltip icon
$2,750.71 / month
4.44% grey tooltip icon
$2,750.71 / month
Rocket Mortgage
Rocket Mortgage
4.55% grey tooltip icon
$2,781.28 / month
4.75% grey tooltip icon
$2,837.28 / month
4.55% grey tooltip icon
$2,781.28 / month
Innovation Federal Credit Union
Innovation Federal Credit Union
4.57% grey tooltip icon
$2,786.86 / month
4.57% grey tooltip icon
$2,786.86 / month
4.57% grey tooltip icon
$2,786.86 / month
BMO
BMO
4.60% grey tooltip icon
$2,795.23 / month
4.79% grey tooltip icon
$2,848.54 / month
4.79% grey tooltip icon
$2,848.54 / month
Nuborrow
Nuborrow
5.49% grey tooltip icon
$3,049.05 / month
5.49% grey tooltip icon
$3,049.05 / month
5.49% grey tooltip icon
$3,049.05 / month
True North Mortgage
True North Mortgage
2.99% grey tooltip icon
$2,363.66 / month
2.99% grey tooltip icon
$2,363.66 / month
2.99% grey tooltip icon
$2,363.66 / month
Interior Savings
Interior Savings
3.99% grey tooltip icon
$2,627.39 / month
3.99% grey tooltip icon
$2,627.39 / month
3.99% grey tooltip icon
$2,627.39 / month
Sudbury Credit Union
Sudbury Credit Union
3.99% grey tooltip icon
$2,627.39 / month
3.99% grey tooltip icon
$2,627.39 / month
3.99% grey tooltip icon
$2,627.39 / month
City Wide Financial Corp
City Wide Financial Corp
3.99% grey tooltip icon
$2,627.39 / month
3.99% grey tooltip icon
$2,627.39 / month
3.99% grey tooltip icon
$2,627.39 / month
Prospera Credit Union
Prospera Credit Union
4.09% grey tooltip icon
$2,654.55 / month
4.09% grey tooltip icon
$2,654.55 / month
4.09% grey tooltip icon
$2,654.55 / month
ATB Financials
ATB Financials
4.09% grey tooltip icon
$2,654.55 / month
4.09% grey tooltip icon
$2,654.55 / month
4.09% grey tooltip icon
$2,654.55 / month
Monster Mortgage
Monster Mortgage
4.14% grey tooltip icon
$2,668.19 / month
4.14% grey tooltip icon
$2,668.19 / month
4.14% grey tooltip icon
$2,668.19 / month
Centum Clinton Wilkins
Centum Clinton Wilkins
4.14% grey tooltip icon
$2,668.19 / month
4.14% grey tooltip icon
$2,668.19 / month
4.14% grey tooltip icon
$2,668.19 / month
Nesto
Nesto
4.14% grey tooltip icon
$2,668.19 / month
4.14% grey tooltip icon
$2,668.19 / month
4.14% grey tooltip icon
$2,668.19 / month
Centum Home Lenders Ltd.
Centum Home Lenders Ltd.
4.14% grey tooltip icon
$2,668.19 / month
4.14% grey tooltip icon
$2,668.19 / month
4.14% grey tooltip icon
$2,668.19 / month
First Foundation
First Foundation
4.19% grey tooltip icon
$2,681.85 / month
4.19% grey tooltip icon
$2,681.85 / month
4.19% grey tooltip icon
$2,681.85 / month

Today's Best Mortgage Rates in Canada

Evaluate Canada’s best 1-year fixed mortgage rates in one place. RATESDOTCA’s Rate Matrix lets you compare 1 year fixed mortgage rates and pricing against all other key mortgage types and terms.

Rates are based on an average mortgage of $500,000

Insured 80% LTV 65% LTV Uninsured Bank Rate
1-year fixed rate 5.04% 4.19% 4.19% 6.63%
6.29%
2-year fixed rate 4.64% 4.09% 4.09% 4.64%
5.59%
3-year fixed rate 4.14% 4.14% 4.14% 4.39%
4.89%
4-year fixed rate 4.29% 4.14% 4.14% 4.54%
4.74%
5-year fixed rate 3.99% 3.99% 3.99% 4.19%
4.59%
7-year fixed rate 4.44% 4.39% 4.39% 5.90%
5.50%
10-year fixed rate 5.09% 4.74% 4.74% 5.90%
7.14%
3-year variable rate 4.60% 4.95% 4.95% 4.95%
6.85%
5-year variable rate 4.40% 4.55% 4.45% 4.45%
4.65%
HELOC rate N/A N/A N/A N/A N/A
Stress test 5.25% 5.25% 5.25% 5.25% N/A
Image of Shivani 2.png

Written By Shivani Kaul

Content Manager

Updated

Today's top 1-year fixed mortgage ratesUpdated 14:43 ET on Jan 08, 2025

Rates are based on a home value of $500,000

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7.74%
Term
1 Yr Fixed
Loan to value
Up to 95%
Insurance
Insured
Rate held until
May 18
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6.84%
Term
1 Yr Fixed
Loan to value
Up to 95%
Insurance
Insured
Rate held until
Apr 18
card image
7.29%
Term
1 Yr Fixed
Loan to value
Up to 95%
Insurance
Insured
Rate held until
May 18

Rates are based on a home value of $500,000

card image
7.34%
Term
1 Yr Fixed
Loan to value
Up to 95%
Insurance
Insured
Rate held until
May 28
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5.99%
Term
1 Yr Fixed
Loan to value
Up to 95%
Insurance
Insured
Rate held until
May 18
card image
6.64%
Term
1 Yr Fixed
Loan to value
Up to 95%
Insurance
Insured
Rate held until
May 18

What is a 1-year fixed mortgage rate?

A mortgage with a locked-in interest rate, meaning the rate will not change during the term of the mortgage is known as a fixed-rate mortgage. A 1-year fixed rate mortgage is the mortgage rate that remains unchanged for a period of 12 months. The homeowner will not have to worry about changes in the overnight rates by the Bank of Canada for that one-year period or any changes in the economy that impact mortgage interest rates.

As per the Canada Mortgage and Housing Corporation (CMHC)’s Residential Mortgage Industry Report, the fixed-term lending rate has been lower than the variable rate since the third quarter of 2022. Moreover, since June 2022, federally regulated financial institutions have lent more funds for new and renewed mortgages under fixed-rate agreements than variable-rate agreements.

However, fixed-rate mortgages of 5 years or more are no longer the most popular option. Since September 2022, new and renewed mortgages under fixed-rate agreements between 3 and 5 years, and between 1 and 3 years have been borrowers’ preferred choice. Borrowers’ expectations that the policy interest rate will decrease from its 15-year high in the next few years, coupled with minimal rate differences between the different agreement lengths, are driving factors behind this shift.

Why are 1-year fixed rates popular?

One-year fixed mortgages are the shortest fixed-rate mortgages a prospective homeowner can get. Current 1-year fixed mortgages are popular for many reasons: 

  • The rates are usually lower than other terms. 
  • They're a good option for homeowners who don't expect to have a mortgage beyond 12 months. 
  • It allows for refinancing flexibility without penalty. 
  • Allows homeowners to capitalize on a falling interest rate environment: they can easily refinance if variable rates drop further the following year.

For the risk-averse person, a 1-year fixed mortgage rate in Canada allows a borrower to avoid the risk of a rate increase during the mortgage term. But there are risks, of course. 

Suppose you have a $400,000 mortgage with a 25-year amortization schedule, and you take a 1-year fixed mortgage with an interest rate of 5.65%. A year passes, and now rates are 200 basis points higher. When your mortgage renews, your payments will increase by $472 or $118 per month per $100,000 borrowed. 

Most Canadians choose longer terms (the most popular term is five years) and put up with a slightly higher rate to avoid such problems at renewal. The amount of paperwork that accompanies new mortgage negotiations is also inconvenient for most.