Select Page
Home | Best Mortgage Rates | Best 1-Year Fixed Mortgage Rates

Best 1-Year Fixed Mortgage Rates helps you find the current best 1 Year Fixed mortgage rates in Canada in one easy to use location The term in this mortgage rate, that is, 1 year is the period of time the mortgage rate is effective.

Filter Mortgage Rates

  • $
  • $
  • $

Compare the Best 1 Year Fixed Mortgage Rates in Canada

Most consumers in Canada are not certain how the mortgage rates will change in near future. Additionally, most consumers are also not sure whether the fixed or the variable rates will serve their financial needs better. As such, selecting the 1 year fixed rate gives you the opportunity to observe the market.

It’s certain that the 1 year fixed mortgage rates are usually lower as compared to the 5 year fixed mortgage rates in flat or falling interest rate surroundings. Some consumers continue to lock into the 1 year fixed mortgage rates year after another. You can achieve the same strategy via the variable mortgage rates since they are usually lower compared to a 1 year fixed mortgage rates and can also be converted to the fixed mortgage rate without any charge.

How popular is 1 Year Fixed Mortgage Rates in Canada

About 1 out of 16 borrowers pick the 1 year mortgages in Canada, meaning that it is the least popular, in spite of the popularity of fixed rate mortgages. Fixed rate mortgages have a popularity of about 66% in the market while the 1 year fixed rate mortgages have only 6% dominance in the Canadian market. Its popularity also doesn’t vary much with time.

In order to get the 1 year mortgage rate term, most lenders would require you to prove that you are in a position to make payment with reference to a qualifying rate, such as a 5 year fixed rate.

Pros & Cons of a 1-year Fixed Mortgage Rate

The 1 year fixed mortgage rates is among the shortest mortgage term commitments and people chose it due to four main advantages:

  • It is much lower as compared to other terms.
  • Those who select the 1 year fixed mortgage rate only expect a mortgage not longer than twelve months.
  • It gives them refinancing flexibility since they can renegotiate it sooner without incurring penalties.
  • Because its selectors have it in mind that the variable-rate discounts are likely to record an improvement in 12 months’ time.

1 year mortgage also does have some disadvantages:

  • Renewal within a year will simply means that one may have to incur the switching costs frequently if they change the lenders.
  • If the rates jump, one is has no protection at renewal as they would be in the case of a long fixed term.

Pros & Cons of getting a Private Mortgage & Loans

What Are Private Mortgage Loans? Private mortgage loans are granted by private lenders unlike banks or conventional financial institutions. These short term loans do not require homeowners to pay the mortgage principal. Simply put, you only have to make the interest...

read more

How much mortgage do I qualify for?

How much do I qualify for? If you’re ready to purchase a new home, one of the first things you want to find out is how much you’re qualified to borrow. Lenders have restrictions on the amount of money that a lender can borrow that is based on the borrower’s...

read more

Reasons to Consider Mortgage Refinancing

There are many reasons to consider mortgage refinancing to replacement your existing mortgage loan with another lender under different terms. A borrower in Canada may consider refinancing his or her loan for diverse reasons. If you’re not sure whether you should go...

read more

Shop before you Renew

        At mortgage renewal time, it is important to keep in mind that all financial institutions are about making a profit. Unfortunately, according to the Canada Mortgage and Housing Corporation (CMHC), between 60-70% of Canadians...

read more