Updated June 8, 2026 Best 1 Year Fixed Mortgage Rates One-year fixed rates provide maximum flexibility for borrowers who expect to sell, refinance, or believe rates will drop soon. While monthly payments are predictable during the term, you'll face renewal annually. Best 1-Year Fixed 5.04% Apply Now → Best 5-Yr Fixed 4.04% Apply Now → Best Variable 3.50% Apply Now → Get Your Free Quote Calculate Payments Compare Best 1 Year Fixed Mortgage Rates Get personalized rates for your city See local market data and mortgage tips Enable Location Updated June 8, 2026 Today's Best Mortgage Rates Compare discounted rates from Canada's top lenders. These are actual rates you can get - not posted bank rates. Prime Rate 4.45% Apply Now → Best 5-Yr Fixed 4.04% Apply Now → Best Variable 3.50% Apply Now → Featured Mortgage Rates Best discounted rates available today – sorted by lowest rate Term Lender Best Rate 5-Year Variable National Bank 3.50% Get This Rate 3-Year Fixed National Bank 3.89% Get This Rate 4-Year Fixed National Bank 3.99% Get This Rate 5-Year Fixed National Bank 4.04% Get This Rate 2-Year Fixed National Bank 4.24% Get This Rate 7-Year Fixed National Bank 4.54% Get This Rate 1-Year Fixed MCAP 4.69% Get This Rate 10-Year Fixed MCAP 4.69% Get This Rate Ready to Lock In Your Rate? Get pre-approved in minutes. No obligation, no credit impact. Get Approved Today * Rates shown are discounted rates for insured mortgages. Rates may vary based on credit profile, down payment, and property type. Subject to change without notice. OAC. How 1-Year Fixed Compares to Other Terms 2-Year Fixed 4.24% -0.8% 3-Year Fixed 3.89% -1.15% 5-Year Fixed 4.04% -1% Variable 3.50% -1.54% Who Should Choose a 1 Year Fixed Mortgage Rates? Ideal For: Borrowers expecting to sell within 1-2 years Those anticipating significant rate drops Buyers in transitional life situations Investors with short holding periods Key Considerations Annual renewal means more frequent paperwork and potential rate volatility at each renewal. Legal and administrative costs accumulate faster with shorter terms. Frequently Asked Questions About 1-Year Fixed Mortgages What is the best 1-year fixed mortgage rate in Canada today? The best 1-year fixed mortgage rate available today is 5.04%. This is a discounted broker rate, significantly lower than posted bank rates. Compare offers from multiple lenders to ensure you're getting the lowest available rate for your situation. Is a 1-year fixed mortgage a good idea? A 1-year fixed mortgage is ideal if you plan to sell soon, expect rates to drop, or are in a transitional period. The trade-off is annual renewal paperwork and potentially higher rates than longer terms. It's also a good option if you want to reassess your mortgage strategy each year. What happens when my 1-year term expires? At renewal, you can renegotiate your rate with your current lender, switch to a different term (such as 3 or 5-year fixed), or transfer your mortgage to another lender—often with no cost if the new lender covers transfer fees. Start shopping 120 days before maturity for the best options. Are 1-year fixed rates higher than 5-year fixed rates? Typically yes—the current 1-year fixed is 5.04% vs. 4.04% for a 5-year fixed. Lenders price shorter terms higher because they bear more renewal risk. However, the total interest paid over 5 years with consecutive 1-year terms can sometimes be lower if rates decline. What is the penalty for breaking a 1-year fixed mortgage? The penalty is the greater of 3 months' interest or the Interest Rate Differential (IRD). With a 1-year term, IRD penalties are minimal since the remaining term is short. This makes 1-year terms attractive if there's any chance you'll need to break early. Can I renew my 1-year fixed into a variable rate? Yes, at renewal you can switch to any available product—variable rate (currently 3.50%), 3-year fixed (3.89%), or 5-year fixed (4.04%). This flexibility is one of the biggest advantages of choosing a shorter mortgage term. Who should choose a 1-year fixed mortgage? A 1-year fixed works best for borrowers expecting to sell within 12-18 months, those waiting for rates to drop before locking in longer, people going through a separation or job change, or investors who want to reassess their portfolio annually. It's not ideal if you want long-term payment certainty. How does a 1-year fixed compare to a variable rate mortgage? The 1-year fixed at 5.04% gives you payment certainty for 12 months, while the variable at 3.50% (Prime 4.45% minus 0.95%) can change with Bank of Canada decisions. Variable rates have lower break penalties (3 months' interest only). Choose fixed for certainty, variable for flexibility and potential savings. Get Your Personalized 1-Year Fixed Rate The rates above are starting points. Your actual rate depends on credit score, down payment, and property type. Speak with a mortgage expert to find your best option. Get Your Free Quote Calculate Payments Verico MortgagePal Inc, Mortgage Brokerage Lic#12685. Regulated by the Financial Services Regulatory Authority of Ontario (FSRA). 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