facebook
Loading...
Call Us: 416-827-2626
Get your credit score.

Best 1-Year Fixed Mortgage Rates

Last Updated: 12 Dec, 2018
Sort by:
Lender Rate Term Amortization Monthly Payment
2.99% 1 Year, Fixed Insurable 25 years
Canadian Western Bank

Canadian Western Bank

2.99% 1 Year, Fixed Insurable 25 years
ATB Financial

ATB Financial

3.14% 1 Year, Fixed Insurable 25 years
ICICI Bank

ICICI Bank

3.19% 1 Year, Fixed Insured 25 years
Meridian Credit Union

Meridian Credit Union

3.24% 1 Year, Fixed Insured 25 years
Meridian Credit Union

Meridian Credit Union

3.24% 1 Year, Fixed Insurable 25 years
3.24% 1 Year, Fixed Insurable 25 years
3.29% 1 Year, Fixed Insurable 25 years
Alterna Bank

Alterna Bank

3.29% 1 Year, Fixed Insurable 25 years
3.39% 1 Year, Fixed Insurable 25 years
3.44% 1 Year, Fixed Insurable 25 years
Libro CU

Libro CU

3.45% 1 Year, Fixed Insurable 25 years
National Bank

National Bank

3.49% 1 Year, Fixed Insurable 25 years
3.49% 1 Year, Fixed Insurable 25 years
B2B Bank

B2B Bank

3.49% 1 Year, Fixed Insured 25 years
B2B Bank

B2B Bank

3.49% 1 Year, Fixed Insurable 25 years
B2B Bank

B2B Bank

3.49% 1 Year, Fixed Uninsured 30 years
3.49% 1 Year, Fixed Insurable 25 years
3.54% 1 Year, Fixed Insurable 25 years
TD Bank

TD Bank

3.54% 1 Year, Fixed Insured 25 years
Don't see your products yet? List your offers with us today! List Offers

What is a 1-year fixed rate?

The term “1-year fixed rate” is made up of two parts: the length of time and the type of mortgage.



The length of term is how long you agree to a certain set of conditions for your mortgage, and the type of mortgage dictates the interest rate you’ll pay. A fixed rate mortgage means that the interest rate won’t change throughout the duration of the term (in this case, one year).

When the term ends, your mortgage isn’t paid off. The end of a term means you’ll have to get a new term, with new conditions and interest rates.

 

 

Who is a 1-year fixed term best for?

There are a couple reasons to go for a 1-year fixed term:

1.       You expect to fully pay off your mortgage within a year, or move

2.       You want the ability to refinance in the next year without penalty

 

However, there are a few downsides to this as well:

1.       If rates are going up, you will have to renew into a higher rate years sooner than a longer term

2.       If you want to switch lenders at every renewal, you’ll have to pay more in switching costs

3.       If rates are going down, you would save more money with a variable rate

 

 

How popular is a 1-year fixed term?

In Canada, most homebuyers choose a fixed rate mortgage. Mortgage terms between 2 – 4 years are the second most popular option but are far behind 5-year fixed terms. 2 – 4-year terms are the most popular with homebuyers under the age of 55, at 23%. Those with a mortgage over the age of 55 overwhelmingly choose a 5-yearmortgage and are almost evenly split between a 2 – 4-year term and a 6 – 10-year term.

 

Mortgage Type

Mortgage Holders Under 55

Mortgage Holders
Over 55

1 year

6%

6%

2 – 4 year

23%

12%

5 year

65%

69%

6 – 10 year

6%

10%

11+ year

0%

2%

 

1-year mortgages are extremely unpopular in Canada, with only 6% of the population having them. They have the lowest interest rates out of all the fixed rates, but with the inconvenience of having to renew every year. Not only that, but if you have to renew every year into rising rates, you will pay more than a comparable variable term over the same amount of time, as variable rates have deeper discounts on prime rate.

With the fear of rising interest rates, many homebuyers and mortgage holders needing to renew will probably opt for a fixed mortgage. 

Posted at: 2018-12-13

A statement from the Canadian Mortgage and Housing Corporation today, December 13, shows that the demand for new mortgages was down in the 2nd quarter of 2018. It’s been a tough year for real estat...

Posted at: 2018-12-07

First Time Home Buyer Programs First-Time Home Buyers Tax Credit The First-Time Home Buyers Tax Credit (FTHC) is a non-refundable tax credit worth $750. A tax credit reduces the amount of tax you o...

Posted at: 2018-12-05

In the latest Bank of Canada interest rate announcement at 10 am Wednesday, December 05, 2018, they announced that interest rates wouldn’t be changed from 1.75%. Most experts agreed that the rates w...

Testimonials

Popular Content
Sitemap Updated On December 13, 2018. Copyright 2018. All Rights Reserved. RateShop.ca

x