Compare Today’s Lowest 1-Year Fixed Mortgage Rates
Your Guide to Getting the Best 1-Year Fixed Mortgage Rates
If you are searching for the best 1-year fixed mortgage rates, comparemortgages.ca is the top choice for borrowers across Canada. We have the resources and understanding of mortgages that can help you complete the process of securing a mortgage in Canada.
Compare 1-Year Fixed Mortgage Rates
Below is a table displaying the best rates from the five largest banks in the country. You can easily compare the rates offered by major Canadian lenders and banks, including TD Bank, RBC, CIBC, HSBC, and Scotiabank. We take care of the research to guarantee you the lowest possible rates upfront every time.
Compare Big Bank Rates
Securing Canada’s most favourable mortgage or loan terms starts with comparing rates from big banks. Interest rates and promotional offers can vary significantly, potentially leading to substantial savings over the life of your loan.
Take Action Today:
- Explore Multiple Options: Don’t settle for the first offer. Research rates from various top lenders and banks across Canada to identify the most competitive options.
- Consider Your Financial Needs: Assess your budget, financial goals, and risk tolerance to determine the loan term and type that best suits you.
- Make an Informed Decision: With comprehensive rate comparisons, make a confident choice that matches your financial needs.
Comparing rates can translate to significant savings and a more favourable financial future.
Compare the Best 1-Year Fixed Mortgage Rates
Securing a fixed-rate mortgage, such as a 1-year mortgage, offers the benefits of a steady, predictable monthly payment until the term ends. Fixed-rate mortgages provide peace of mind since, as a borrower, you know exactly how much you will pay each month until the end of your term.
It is important to note that the mortgage term and amortization differ. Mortgage terms are most often 2, 3, 5, or 10 years, depending on the interest rate chosen, though there are also 1, 6, and 7-year fixed mortgage rates available depending on the financial institution. The amortization is how long it will take to pay off your mortgage in full and is usually 25 or 30 years, depending on your down payment amount.
To ensure you can meet your monthly repayment obligations as a borrower, you must meet the approval criteria set by the Bank of Canada’s benchmark qualifying rate of 5.25% or your contracted mortgage rate +2%, whichever is higher. This ensures that the mortgage you choose is manageable and sustainable throughout the term.
Benefits of Fixed-Rate Terms
Fixed-rate terms offer the benefit of knowing exactly how much you will pay each month toward your mortgage, providing borrowers peace of mind. This allows you to budget accordingly without fear of any unexpected rate increases during your term.
A 1-year mortgage term may make sense for your situation as it ensures your payments are consistent for the duration of the year, even if there are changes to interest rates over your term. Meanwhile, choosing a 1-year term allows you to realize potential savings should interest rates decrease by the end of your term.
Popularity of the 1-Year Fixed-Rate Mortgage
While the 5-year fixed-rate mortgage has long reigned as the most popular choice among Canadians, there has been a shift recently to shorter-term fixed-rate mortgages becoming the more popular choice. The length of the term you choose should be based on how much risk you are willing to take, and you should factor in how any possible rate increases will affect your finances and mortgage payments at renewal.
Choosing a 1-year fixed mortgage rate can be a great choice for borrowers who believe that rates will decrease within the next year, allowing them to benefit from a lower rate at renewal. If you plan to sell within the year, choosing a 1-year term can also be beneficial since the penalties to break your mortgage will be much lower with a shorter fixed-rate term.