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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
Rates are based on an average mortgage of $500,000 and subject to change based on filter criteria.
Lender
|
Insured
|
Insurable
|
Uninsured
|
|---|---|---|---|
Lendwire Inc.
|
4.04%
$2,640.95 / month
|
4.24%
$2,695.56 / month
|
4.24%
$2,695.56 / month
|
Lendwire Inc
|
4.04%
$2,640.95 / month
|
4.24%
$2,695.56 / month
|
4.24%
$2,695.56 / month
|
MMG Mortgages
|
4.14%
$2,668.19 / month
|
4.44%
$2,750.71 / month
|
4.44%
$2,750.71 / month
|
Rocket Mortgage
|
4.55%
$2,781.28 / month
|
4.75%
$2,837.28 / month
|
4.55%
$2,781.28 / month
|
Innovation Federal Credit Union
|
4.57%
$2,786.86 / month
|
4.57%
$2,786.86 / month
|
4.57%
$2,786.86 / month
|
BMO
|
4.60%
$2,795.23 / month
|
4.79%
$2,848.54 / month
|
4.79%
$2,848.54 / month
|
Nuborrow
|
5.49%
$3,049.05 / month
|
5.49%
$3,049.05 / month
|
5.49%
$3,049.05 / month
|
True North Mortgage
|
2.99%
$2,363.66 / month
|
2.99%
$2,363.66 / month
|
2.99%
$2,363.66 / month
|
Interior Savings
|
3.99%
$2,627.39 / month
|
3.99%
$2,627.39 / month
|
3.99%
$2,627.39 / month
|
Sudbury Credit Union
|
3.99%
$2,627.39 / month
|
3.99%
$2,627.39 / month
|
3.99%
$2,627.39 / month
|
City Wide Financial Corp
|
3.99%
$2,627.39 / month
|
3.99%
$2,627.39 / month
|
3.99%
$2,627.39 / month
|
Prospera Credit Union
|
4.09%
$2,654.55 / month
|
4.09%
$2,654.55 / month
|
4.09%
$2,654.55 / month
|
ATB Financials
|
4.09%
$2,654.55 / month
|
4.09%
$2,654.55 / month
|
4.09%
$2,654.55 / month
|
Monster Mortgage
|
4.14%
$2,668.19 / month
|
4.14%
$2,668.19 / month
|
4.14%
$2,668.19 / month
|
Centum Clinton Wilkins
|
4.14%
$2,668.19 / month
|
4.14%
$2,668.19 / month
|
4.14%
$2,668.19 / month
|
Nesto
|
4.14%
$2,668.19 / month
|
4.14%
$2,668.19 / month
|
4.14%
$2,668.19 / month
|
Centum Home Lenders Ltd.
|
4.14%
$2,668.19 / month
|
4.14%
$2,668.19 / month
|
4.14%
$2,668.19 / month
|
First Foundation
|
4.19%
$2,681.85 / month
|
4.19%
$2,681.85 / month
|
4.19%
$2,681.85 / month
|
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 |
Updated
Rates are based on a home value of $500,000
Rates are based on a home value of $500,000
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.
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:
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.