1-Year Fixed Mortgage Rates in Canada 2026
This Page’s Content Was Last Updated: April 2026
This Page’s Mortgage Rates Were Last Updated: April 15, 2026 10:58 AM ET
Today’s Lowest 1-Year Fixed Mortgage Rates in Canada
Today’s Mortgage Rates updated as of April 15, 2026 10:58 am
For a property located in
1-year fixed*
*Insured mortgage rates only. Conditions apply. Rates are current as of today and subject to change without notice. Applicable to high-ratio purchase and renewal transactions with loan-to-value (LTV) ratios greater than 80.01% and up to 95%. Certain programs may also be available for insured files at 65% LTV and below, subject to insurer and lender guidelines on OAC.
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TL;DR – What You Need to Know About 1-Year Fixed Mortgage Rates in 2026
Set by the Bank of Canada
Influences lenders’ prime rates
Affects variable mortgages and lines of credit
Changes can increase or decrease monthly payments
🏦 1-Year Fixed Mortgage Rates in Canada
A 1-year fixed mortgage rate offers a guaranteed interest rate and payment for 12 months, giving homeowners and buyers short-term stability without committing to a longer fixed term. This option is often used when flexibility is important or when borrowers want to reassess the mortgage market sooner.
At Citadel Mortgages, we help Canadians understand when a 1-year fixed mortgage makes sense, how it compares to longer terms, and what to plan for at renewal so there are no surprises.
📌 What Is a 1-Year Fixed Mortgage?
A 1-year fixed mortgage is a mortgage term where:
The interest rate is fixed for one year
Monthly payments remain consistent
You are protected from short-term rate increases
At the end of the 12-month term, the mortgage must be renewed, refinanced, or paid out based on market conditions and lender options.
According to the Financial Consumer Agency of Canada, fixed-rate mortgages provide payment stability for the length of the term, but renewal conditions depend on the market at that time.
📉 Why 1-Year Fixed Mortgage Rates Change
Even though your rate is fixed during the term, new 1-year fixed mortgage rates change frequently due to:
Interest rate policy decisions
Inflation expectations
Short-term funding costs for lenders
Short-term mortgage rates are influenced by economic conditions and monetary policy set by the Bank of Canada, which plays a key role in Canada’s interest-rate environment.
👤 Who Is a 1-Year Fixed Mortgage Best For?
A 1-year fixed mortgage may be suitable if you:
Expect interest rates or your financial situation to change soon
Plan to refinance or restructure within 12–24 months
Want flexibility without committing to a long-term rate
Are renewing and prefer a short reassessment window
Borrowers who need long-term payment certainty may prefer longer fixed terms.
⚖️ Pros and Cons of a 1-Year Fixed Mortgage
✅ Pros
Guaranteed payment for 12 months
Short commitment period
Flexibility at renewal
Protection from near-term rate increases
⚠️ Cons
Renewal risk if rates rise
More frequent mortgage decisions
Fixed-rate penalties may apply if broken early
Compare 1 Year Fixed Mortgage Rates In Canada
This Page’s Mortgage Rates Were Last Updated: April 15, 2026 10:58 AM ET
🔁 1-Year Fixed vs Other Mortgage Terms
1-Year Fixed Mortgage
Maximum flexibility
Highest renewal frequency
5-Year Fixed Mortgage
Balanced stability and flexibility
Variable Mortgage
Payments may fluctuate
Greater exposure to interest-rate changes
You can compare longer-term options on our Best Mortgage Rates in Canada page:
💡 How to Choose the Right 1-Year Fixed Mortgage
Before choosing a 1-year fixed mortgage, consider:
How long you plan to stay in the property
Whether refinancing or selling is likely
Your tolerance for renewal risk
Penalties and renewal rules
Understanding your mortgage renewal options ahead of time helps avoid surprises and unnecessary costs.
🧠 Expert Insight from Citadel Mortgages
“A 1-year fixed mortgage is a short-term planning tool, not a long-term solution. Its value comes from flexibility — but only when borrowers understand their renewal options before committing..”
— Citadel Mortgages Lending Team
Frequently Asked Questions About 1-Year Fixed Mortgage Rates
What happens at the end of the 1-year term?
You can renew, refinance, or switch to another lender based on your needs.
Are 1-year fixed rates higher than longer terms?
Not necessarily. Rates for 1-year terms can be competitive, depending on market conditions.
Can I break a 1-year fixed mortgage early?
Yes, but early repayment penalties may apply
Is a 1-year fixed mortgage a good choice for first-time buyers?
Yes, especially if you want flexibility while planning your long-term finances.
Can I refinance after a 1-year fixed mortgage?
Yes, provided you qualify and lender rules allow it at the time of refinancing.
Are 1-year fixed mortgage rates lower than 5-year rates?
Not always. Short-term fixed rates may be higher or lower depending on market expectations.
Do penalties apply if I break a 1-year fixed mortgage early?
Yes. Fixed-rate mortgages typically include penalties if broken before maturity.
🏦 Explore More Citadel Mortgage Calculator Tools
Simplify your financial planning with our full calculator suite:
🌟 Why Choose Citadel Mortgages?
When you work with Citadel Mortgages, you benefit from:
Access to banks, credit unions, and alternative lenders
Clear explanations of renewal risk and penalties
Mortgage advice focused on planning, not just rates
Support before, during, and after renewal
Some borrowers also explore long-term mortgage planning strategies, such as a 2-in-1 mortgage structure, depending on their goals:
🚀 Apply for a 1-Year Fixed Mortgage
A 1-year fixed mortgage offers short-term certainty without a long-term commitment. Citadel Mortgages helps you compare options, understand renewal risks, and secure a mortgage aligned with your plans.
This option is well-suited for borrowers who want flexibility, expect changes in the market or their financial situation, and prefer not to lock into a long-term commitment.