icon

Find the Best 1-Year Fixed Open Mortgage Rates in Canada

Compare the best rates from major banks, credit unions and 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 open mortgage rates from lenders across Canada

Sonnet
TD Canada Trust Logo
National Bank of Canada logo
Desjardins
Home Trust.png

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

$

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
Compass Mortgage Group oa My Mortgage Power
Compass Mortgage Group oa My Mortgage Power
3.99% grey tooltip icon
$2,627.39 / month
4.14% grey tooltip icon
$2,668.19 / month
4.14% grey tooltip icon
$2,668.19 / 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
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
4.04% grey tooltip icon
$2,640.95 / month
4.44% grey tooltip icon
$2,750.71 / month
4.40% grey tooltip icon
$2,739.64 / month
Rocket Mortgage
Rocket Mortgage
4.39% grey tooltip icon
$2,736.87 / month
4.54% grey tooltip icon
$2,778.49 / month
4.39% grey tooltip icon
$2,736.87 / month
BMO
BMO
4.52% grey tooltip icon
$2,772.93 / month
4.71% grey tooltip icon
$2,826.04 / month
4.71% grey tooltip icon
$2,826.04 / 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
Gibson Mortgages
Gibson Mortgages
4.99% grey tooltip icon
$2,905.18 / month
4.44% grey tooltip icon
$2,750.71 / month
4.29% grey tooltip icon
$2,709.29 / 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
Monster Mortgage
Monster Mortgage
3.87% grey tooltip icon
$2,594.98 / month
3.87% grey tooltip icon
$2,594.98 / month
3.87% grey tooltip icon
$2,594.98 / month
The Mortgage Advisors
The Mortgage Advisors
3.87% grey tooltip icon
$2,594.98 / month
3.87% grey tooltip icon
$2,594.98 / month
3.87% grey tooltip icon
$2,594.98 / month
Nesto
Nesto
3.94% grey tooltip icon
$2,613.86 / month
3.94% grey tooltip icon
$2,613.86 / month
3.94% grey tooltip icon
$2,613.86 / 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

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 4.94% 4.19% 4.19% 6.20%
5.84%
2-year fixed rate 4.29% 4.09% 4.09% 4.44%
5.29%
3-year fixed rate 3.87% 4.04% 4.04% 4.24%
4.64%
4-year fixed rate 4.09% 3.99% 3.99% 4.44%
4.54%
5-year fixed rate 3.94% 3.99% 3.99% 3.99%
4.24%
7-year fixed rate 4.39% 4.29% 4.29% 5.85%
5.25%
10-year fixed rate 5.04% 4.59% 4.59% 5.89%
7.04%
3-year variable rate 4.30% 4.40% 4.40% 4.70%
6.60%
5-year variable rate 4.15% 4.20% 4.20% 4.20%
4.45%
HELOC rate N/A N/A N/A N/A N/A
Stress test 5.25% 5.25% 5.25% 5.25% N/A
Icon - Human

Written By Lubna Umar

Updated

Today's top 1-year fixed mortgage ratesUpdated 09:47 ET on Feb 06, 2025

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

card image
7.74%
Term
1 Yr Fixed
Loan to value
Up to 95%
Insurance
Insured
Rate held until
Jun 21
card image
6.84%
Term
1 Yr Fixed
Loan to value
Up to 95%
Insurance
Insured
Rate held until
May 22
card image
7.29%
Term
1 Yr Fixed
Loan to value
Up to 95%
Insurance
Insured
Rate held until
Jun 21

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
Jul 01
card image
5.99%
Term
1 Yr Fixed
Loan to value
Up to 95%
Insurance
Insured
Rate held until
Jun 21
card image
6.64%
Term
1 Yr Fixed
Loan to value
Up to 95%
Insurance
Insured
Rate held until
Jun 21

What is a 1-year fixed open mortgage rate?

One-year fixed terms are one of the shortest commitments among mortgage terms. While 1-year terms in general offer borrowers more flexibility due to the shorter commitment period, a 1-year fixed open mortgage provides the ultimate in repayment flexibility, as it can be repaid in part or fully at any time.

One-year terms aren't very popular with Canadian mortgage shoppers, as only about 5-6% of borrowers choose one, according to Mortgage Professionals Canada. One-year fixed open mortgages make up an even smaller piece of that pie.

Like 6-month open mortgages, 1-year fixed open mortgages can be a good short-term mortgage solution, with borrowers typically intending to renew into a longer mortgage term afterwards. Since it’s an open mortgage, a borrower can repay any amount of the loan at any time without penalty.

But that payment flexibility comes with a price. One-year open mortgage terms are priced significantly higher than comparable closed short-term mortgages.

This rate premium is largely due to the absence of a prepayment penalty. Because borrowers can repay the loan at any time, the loan is riskier for lenders to fund since they don’t know if they’ll receive the full interest cost over the term or if the loan will be repaid sooner. That creates “prepayment risk,” meaning the lender earns less profit at a given rate, versus a closed mortgage.

Advantages of a 1-year fixed open mortgage

These are some advantages for a shorter term mortgage.

  • No prepayment penalties: An open mortgage means borrowers can increase their regular payments or make lump-sum payments with no risk of prepayment penalties.
  • Stable interest rate: Fixed rates stay the same throughout their term and aren’t affected by the prime rate.

Disadvantages of a 1-year fixed open mortgage

There are also some disadvantages to consider.

Higher interest rates: Due to the prepayment flexibility of an open mortgage rate, interest rates tend to be significantly higher vs. comparable closed terms.

Renewal hassle: With such a short term, renewing just after a year can be a hassle, although most renew into a longer term.

Renewal risk: If you choose a short fixed term, you run the risk of renewing into higher interest rates when your term is up.

Lubna Umar

Lubna Umar is an SEO Content Manager at RATESDOTCA. She has produced a wide variety of content, including academic essays, pieces of fiction and financial literacy guides. In her free time, she can be found exploring the café culture in Toronto or any other major city.

Featured in
  • Financial Post

Latest mortgage articles

Why do mortgage rates change in Canada?
Why do mortgage rates change? And what’s behind the difference between fixed and variable Canadian mortgage rates? Let's dig deep.
3 mins read
Ask the Expert: How Trump's tariffs will affect your Canadian mortgage
If history repeats itself, our economy is in for a bumpy ride. Now is the time to tread carefully - and don't make any major buying decisions alone.
5 mins read
BoC cuts policy rate by 25 basis points amid trade tensions: what does this mean for Canadians?
The Bank of Canada has cut its key interest rate by 25 basis points, lowering it to 3%, as it navigates trade tensions, inflationary concerns, and a cooling housing market.
5 mins read

Subscribe to our newsletter

Stay on top of our latest offers, relevant news and tips!

Thanks for joining!

You'll be hearing from us shortly - stay tuned.