Lender | Rates |
---|---|
Butler Mortgage Check More Rates 4.7/5(772 reviews) | 6.34% |
6ix Mortgage Group Check More Rates 4.8/5(60 reviews) | 6.34% |
Pine Check More Rates 5.0/5(101 reviews) | 6.45% |
DUCA Check More Rates | 6.59% |
Mortgage Alliance Check More Rates | 6.74% |
ICICI Check More Rates | 6.74% |
Dominion Lending Check More Rates | 6.79% |
Laurentian Check More Rates | 7.04% |
BMO Promo Rates | 7.17%
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YNCU Check More Rates | 7.19% |
Alterna Savings Check More Rates | 7.24% |
First Ontario Check More Rates | 7.29% |
HSBC Check More Rates | 7.34% |
RFA Check More Rates | 7.44% |
Equitable Check More Rates | 7.44% |
RBC Check More Rates | 7.49% |
CMLS Check More Rates | 7.49% |
Canadian Western Check More Rates | 7.49% |
Caisse Alliance Check More Rates | 7.59% |
Tangerine Check More Rates | 7.59% |
Lendwise Check More Rates | 7.59% |
Community Trust Check More Rates | 7.69% |
First National Check More Rates | 7.69% |
Meridian Check More Rates | 7.79% |
Manulife Check More Rates | 7.89% |
National Bank Check More Rates | 7.89% |
TD Check More Rates | 7.94% |
Desjardins Check More Rates | 7.99% |
Scotiabank Check More Rates | 8.04% |
Bridgewater Bank Check More Rates | % |
As of December 11, 2023,
Based on a basket of 11 lenders in Canada:
The basket of 11 lenders includes: CIBC, BMO, TD, Scotiabank, RBC, National Bank, HSBC, Desjardins, nesto, Tangerine, First National
For those looking to get a short-term mortgage, 1-year fixed mortgages are one of the shortest mortgage terms available in Canada. It means that the interest rate and regular mortgage amount will remain the same for one year. After that, you’ll need to renew at current mortgage rates, refinance, or pay off your mortgage in full. When should you consider a 1-year fixed mortgage, and what are the pros and cons? This page will explain all you need to know about 1-year fixed mortgages in Canada.
A 1-year fixed mortgage is just what it sounds like: a mortgage with a term of one year and an interest rate that does not change for the duration of the term. This means that, unlike other types of mortgage loans, you will have the same monthly payment for 12 months. Other common fixed mortgage term lengths that you can choose from include 5-year and 3-year fixed mortgages.
Different mortgage terms will have their own mortgage rates. Generally, the longer the term, the higher the rate will be. Historically, 1-year fixed rates have been lower than 3-year and 5-year fixed rates. However, it’s still possible for 1-year fixed mortgage rates to be higher than even 5-year fixed mortgage rates. Due to their short term lengths, a 1-year fixed mortgage can sometimes be seen as an alternative to a variable mortgage rate.
One of the biggest advantages of a 1-year fixed mortgage is that it offers predictability. You'll know exactly how much your mortgage payments will be for the next year, which can help you budget and plan ahead. Additionally, because your interest rate will not change, you'll be able to lock in a low rate if rates are currently low. However, the short term length means that the rate you’re locking in won’t be locked for long. Your mortgage renewal will quickly come up, where you’ll then need to renew for another term.
There are many reasons why a borrower might only want a 1-year mortgage term. This includes those that are:
According to the Government of Canada, 10% of fixed rate mortgages in Canada have a term length of less than 1 year, while 23.5% of mortgages have a term length ranging from 1 year to less than 3 years. In comparison, 46% of fixed rate mortgages have a term of 5 years or more. While 5-year fixed rate mortgages are the most common mortgage choice in Canada, there is still a sizable market for those looking for a short-term mortgage.
1-Year Mortgage | 5-Year Mortgage | |
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Posted Conventional Rates by Canada’s Major Banks
Year | Jan | Feb | Mar | Apr | May | June | July | Aug | Sept | Oct | Nov | Dec |
2016 | 3.14% | 3.14% | 3.14% | 3.14% | 3.14% | 3.14% | 3.14% | 3.14% | 3.14% | 3.14% | 3.14% | 3.14% |
2017 | 3.14% | 3.14% | 3.14% | 3.14% | 3.14% | 3.14% | 3.14% | 3.14% | 3.14% | 3.24% | 3.24% | 3.24% |
2018 | 3.24% | 3.34% | 3.34% | 3.34% | 3.49% | 3.49% | 3.49% | 3.49% | 3.49% | 3.49% | 3.64% | 3.64% |
2019 | 3.64% | 3.64% | 3.64% | 3.64% | 3.64% | 3.64% | 3.64% | 3.64% | 3.64% | 3.64% | 3.64% | 3.64% |
2020 | 3.64% | 3.64% | 3.64% | 3.29% | 3.29% | 3.19% | 3.19% | 3.09% | 3.09% | 3.09% | 3.09% | 3.09% |
2021 | 3.09% | 2.79% | 2.79% | 2.79% | 2.79% | 2.79% | 2.79% | 2.79% | 2.79% | 2.79% | 2.79% | 2.79% |
2022 | 2.79% | 2.79% | 2.79% | 3.09% | 3.29% | 3.79% | 4.74% | 5.19% | 5.19% | 6.09% | 6.09% |
Source: Bank of Canada