1-Year Fixed Mortgage Rates Canada | Best Mortgage Rates 2024
Find the Best Mortgage Rates in Canada
Today’s Mortgage Rates updated as of December 12, 2024 8:10 pm
For a property located in
5-year fixed*
5-year Variable*
(Prime -1.15%)
*Insured loans. Other conditions apply. Rate in effect as of today.
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What Are 1-Year Fixed Mortgage Rates?
A 1-year fixed mortgage rate locks in your interest rate for a term of one year. This short-term option is ideal for borrowers seeking stability for the next 12 months while keeping their options open for renewal, refinancing, or market shifts.
Whether you’re a first-time homebuyer, refinancing, or renewing your mortgage, understanding current trends and available options helps you make informed financial decisions.
This guide focuses on helping you navigate the Canadian mortgage market, offering insights into current rates, strategies for securing the best deal, and regional trends.
Mortgage brokers play a pivotal role in helping Canadians find tailored financing options, providing expert advice, and navigating the often complex mortgage market.
For more detailed information on mortgage types, costs, and rights, consult the Government of Canada – Financial Consumer Agency of Canada (FCAC).
Why Choose a 1-Year Fixed Mortgage Rate?
Choosing a 1-year fixed mortgage rate comes with unique benefits, including:
1. Short-Term Stability
- Locks in your interest rate and payments for 12 months, protecting you from market fluctuations.
2. Flexibility
- Ideal if you anticipate significant life changes, such as moving, selling your home, or refinancing soon.
3. Opportunity to Reassess
- After one year, you can revisit the mortgage market and explore new rates, terms, or lenders.
Learn more about today’s best mortgage rates in Canada.
Current 1-Year Fixed Mortgage Rates in Canada
| Lender | 1-Year Fixed Rate (%) | Features |
|---|---|---|
| Big 5 Banks (Average) | 5.70% – 5.90% | Standard fixed-rate terms |
| Online Lenders | 5.60% – 5.80% | Competitive rates, fewer fees |
| Credit Unions | 5.65% – 5.85% | Personalized service, flexible options |
Read about how fixed and variable rates compare on the Government of Canada website.
Mortgage Statistics for Short-Term Rates
| Metric | 1-Year Fixed | National Average |
|---|---|---|
| Average Rate (2024) | 5.75% | 5.50% – 6.50% |
| Typical Loan Size | $360,000 | $390,000 |
| Approval Time | 3–5 Business Days | 3–7 Business Days |
Why Choose Citadel Mortgages for a 1-Year Fixed Rate?
At Citadel Mortgages, we specialize in short-term mortgage solutions tailored to your unique financial needs.
What Sets Us Apart?
Extensive Lender Network:
- Compare rates from leading banks, credit unions, and private lenders.
Expert Guidance:
- Receive personalized advice to navigate the mortgage process with ease.
Flexible Options:
- Explore solutions that align with your short-term and long-term goals.
Fast Approvals:
- Get approved quickly with a seamless and efficient process.
At Citadel Mortgages, we specialize in finding tailored mortgage solutions for every client. Here’s why we’re the top choice for homeowners in Canada:
- Wide Lender Network:
- Access competitive rates from banks, credit unions, and private lenders.
- Expert Advice:
- Stay informed on short-term rate trends and opportunities.
- Personalized Solutions:
- Get a mortgage plan that aligns with your short-term and long-term goals.
- Streamlined Process:
- Quick approvals and dedicated support for a hassle-free experience.
Contact Citadel Mortgages today to find your ideal 6-month fixed mortgage.
Using a mortgage broker that has access to some of the lowest mortgage rates in Canada, is key to ensure you have the best approval rate.
Compare 1 Year Fixed Mortgage Rates In Canada
Discover the average savings of current Citadel Mortgage clients when they choose Citadel Mortgages over the top banks!
While 33% of non-homeowners believe they’ll never own*, our Citadel mortgage brokers are 100% confident they can make it happen. How? With our expert advice and guidance.
$300,000
Mortgage Loan
$12,414
(5-years interest savings with Citadel Mortgages)**
$232/month
(Interest savings with Citadel Mortgages)
$500,000
Mortgage Loan
$17,090
(5-years interest savings with Citadel Mortgages)**
$290/month
(Interest savings with Citadel Mortgages)
Eligibility Criteria for a 1-Year Fixed Mortgage
To qualify for the best 1-year fixed mortgage rates, you’ll need to meet standard lender requirements:
1. Credit Score
- A minimum credit score of 680 is recommended for the most competitive rates.
2. Income Verification
- Proof of stable income through pay stubs, tax returns, or bank statements is required.
3. Down Payment
- A minimum down payment of 5% for insured mortgages and 20% for uninsured mortgages is necessary.
4. Debt-to-Income Ratio
- GDS ≤ 35% and TDS ≤ 42% are standard debt ratio requirements.
5. Property Type
- The property must be a residential home or eligible rental property.
Who Should Consider a 1-Year Fixed Mortgage?
This option is well-suited for:
Short-Term Needs:
- Ideal for homeowners planning to sell their property or refinance soon.
Market Watchers:
- Great for those expecting interest rates to drop in the near term.
Renewal Flexibility:
- Allows borrowers to reassess their financial needs after one year.
We compare mortgage rates from top lenders, including BMO mortgage rates, CIBC mortgage rates, RBC mortgage rates, TD Bank Mortgage Rates, and MCAP mortgage rates, alongside our exclusive Citadel Smart Home Plan mortgage rates. Let us simplify the process and help you secure approval quickly and stress-free!
Lowest 1 Year Fixed Mortgage Rates In Canada
Documents Needed for Mortgage Approval in Canada
- Government ID: Driver’s license, passport, or permanent resident card.
- Proof of Income: Recent pay stubs, T4 slips, or self-employment income proof.
- Employment Verification: Letter from your employer detailing salary and position.
- Down Payment Proof: Bank statements or proof of savings.
- Credit Report Authorization: Permission for lenders to access your credit history.
Additional Documentation
- Other documents may be needed based on your unique situation. Our experienced mortgage agents at Citadel Mortgages will assist you in identifying and gathering any additional paperwork required to complete your second mortgage application.
Get a Mortgage with Citadel Mortgages
Navigate Interest Rate Trends with Confidence: Mortgage Solutions Tailored for You
At Citadel Mortgages, we recognize how important it is to stay informed about changing mortgage interest rates. Whether you’re purchasing your first home, refinancing, or renewing your mortgage, we’re here to guide you through the process with solutions that suit your financial needs, even in fluctuating rate environments.
Why Choose Our Mortgage Solutions?
Flexible Mortgage Options
From fixed to variable rates, we offer tailored solutions that help you secure the most competitive interest rates for your situation.
Expert Guidance on Rate Trends
Our team monitors the Canadian mortgage market to provide insights on current rates, helping you make informed decisions.
Approval Regardless of Credit History
We focus on finding solutions, even if you’ve faced credit challenges or financial setbacks.
Low-Income Friendly Options
Income constraints shouldn’t hold you back. We specialize in making homeownership accessible for Canadians in various financial situations.
Streamlined Application Process
Enjoy a smooth experience with quick approvals and clear communication every step of the way.
Benefits of Working with Citadel Mortgages
Rate Lock Protection
Secure today’s interest rates to avoid surprises if rates increase before your mortgage closes.
Debt Relief Options
Consolidate high-interest debt into a single, lower-interest mortgage payment, saving you money and simplifying your finances.
Customizable Payment Plans
Choose flexible payment terms that fit your budget, whether you prefer the stability of a fixed rate or the potential savings of a variable rate.
Quick Fund Access for Refinancing
Refinance your mortgage to tap into your home’s equity for renovations, debt consolidation, or investment opportunities.
Contact Us To Get Approved Now
Citadel Mortgages 1 Year Fixed Mortgage Rates
1-Year Fixed vs. Other Mortgage Terms
| Feature | 1-Year Fixed | 6-Month Fixed | 5-Year Fixed |
|---|---|---|---|
| Term Length | 1 Year | 6 Months | 5 Years |
| Interest Rate | Lower than 6-Month | Slightly Higher | Competitive |
| Payment Stability | Stable | Stable | Stable |
| Flexibility | Moderate | High | Low |
| Best For | Short-Term Planning | Temporary Stability | Long-Term Stability |
Benefits of Monitoring the Target Overnight Rate
Staying updated on the Bank of Canada’s target overnight rate helps homeowners and buyers:
- Plan Financially: Understand how potential rate changes may affect your monthly payments.
- Refinance Strategically: Take advantage of lower rates when refinancing an existing mortgage.
- Lock in Competitive Rates: Secure a fixed rate before anticipated rate increases.
- Avoid Surprises: Prepare for potential increases in borrowing costs.
Bank of Canada Rate Announcements for 2024
The Bank of Canada schedules eight interest rate announcements annually, providing updates on monetary policy.
- Next Announcement: Check the official Bank of Canada Rate Schedule for the next update.
Should You Choose Fixed or Variable Rates in 2024?
With the Bank of Canada targeting inflation control, many Canadians face the dilemma of choosing between fixed and variable mortgage rates.
| Feature | Fixed Rate | Variable Rate |
|---|---|---|
| Payment Stability | Consistent payments for the term | Payments fluctuate with the prime rate |
| Interest Costs | Slightly higher but predictable | Lower initially but may increase |
| Risk Tolerance | Ideal for risk-averse borrowers | Suitable for those comfortable with rate changes |
| Market Outlook | Best if rates are expected to rise | Best if rates are expected to fall |
FAQs: 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.
Use Our Mortgage Calculator Today!
Understanding Your Mortgage Options
Use our mortgage calculator to gain a clearer picture of what you can expect in terms of monthly payments, interest costs, and amortization schedules. Simply input your loan amount, interest rate, and amortization period to get started. This tool provides estimates to help you make informed decisions as you explore different mortgage options.
Benefits of Using Our Mortgage Calculator
- Accurate Estimates: Get precise calculations on your potential second mortgage amount based on your home’s equity, current mortgage balance, and other financial factors.
- Financial Planning: Understand your monthly payment obligations and how they fit into your overall budget.
- Interest Rate Comparison: Compare different interest rates to see how they affect your monthly payments and total loan cost.
- Loan Scenarios: Explore various loan scenarios to determine the best option for your financial needs.
Final Thoughts - 1 Year Fixed Mortgage Rates
Choosing the right mortgage term, whether short-term or long-term, is a critical decision that impacts your financial goals and stability. A 1-year fixed mortgage rate offers short-term predictability and flexibility, making it ideal for those seeking temporary stability or planning to refinance soon. On the other hand, longer-term fixed rates provide peace of mind with consistent payments over several years, while variable rates offer potential cost savings in a declining rate environment.
Understanding the differences between short-term and long-term mortgage options is key to making an informed decision. By evaluating your financial situation, goals, and market conditions, you can select a mortgage product that aligns with your needs.
At Citadel Mortgages, we specialize in helping Canadians navigate the complexities of mortgage rates and terms. Whether you’re looking for a 6-month fixed rate, a 5-year variable, or something in between, our team is here to provide personalized guidance and access to the best rates in Canada.
Why Choose Citadel Mortgages
At Citadel Mortgages, we pride ourselves on offering expert, client-focused mortgage solutions that stand out in the industry. Here’s why you should choose us:
Expertise Across Canada
Our mortgage brokers are licensed and certified across multiple provinces, providing exceptional advice and service tailored to your unique needs. Our mortgage brokers are committed to delivering the highest standards of professionalism and expertise.
Client-Focused Service
Unlike traditional commission-based models, our mortgage agents are evaluated based on client satisfaction and the quality of their advice. This ensures that you receive impartial guidance on the best mortgage options for your situation.
Competitive Rates
Citadel Mortgages offers competitive rates that help you save money over the life of your mortgage. Our team works diligently to find the most favorable terms to suit your financial goals.
Transparent and Seamless Process
We are dedicated to transforming the mortgage industry by offering a transparent, seamless process. Our 100% digital platform ensures that you can manage your mortgage application from start to finish with ease and confidence.
Commitment to Excellence
At Citadel Mortgages, our mission is to provide a positive, empowering, and transparent property financing experience. We simplify the mortgage process to make it as straightforward and stress-free as possible.
Contact Us Today
For personalized advice and the best mortgage rates in Toronto, contact our licensed and knowledgeable mortgage experts at Citadel Mortgages.
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