Welcome to the best online resource for current 1-year fixed mortgage rates. Our detailed information on these rates and convenient listing of the best 1-year fixed mortgage rates in Canada make it easy to find out if one of these mortgages is right for you. Consider the data on this page, and click on your favorite 1-year fixed rate to apply for a loan.
The Basics of a 1-Year Fixed Mortgage Rate
A fixed mortgage rate is an interest rate that never changes during your mortgage term. In the case of the 1-year fixed mortgage rate, your rate remains unchanged for one year after your loan’s closing because 1-year refers to the length of your mortgage term. If you have not paid off your loan by the end of the year, you must refinance or renew your mortgage and get a new loan term.
Most people cannot pay off their loan in under a year, so they choose an amortization period that is longer than their loan term. Amortization periods of 15- and 30- years are fairly popular. If you have a 30-year amortized mortgaged with a 1-year fixed mortgage rate, it will take you thirty years to pay off your home. If you choose 1-year fixed mortgage rate terms throughout your amortization period, you may have a different rate for every year of your mortgage, although the rate will remain the same for one full year each time you agree to a new loan term.
1-Year Fixed Mortgage Rates: The Positives
• Future Savings — If you lock in a fixed interest rate for a period of several years, you can lose out on potential savings if average rates drop before the end of your loan term. Locking in a rate for only one year limits the amount of time you are stuck with a fixed rate, giving you greater flexibility to refinance into lower rates when they arise. • Predictability — Because your rate is fixed, so is your principal and interest payment during your loan term. That makes it easier to determine your annual budget.
1-Year Fixed Mortgage Rates: The Negatives
• Time Loss — A 1-year fixed mortgage term must be renegotiated when it ends. If you are very busy, having to do this every year can waste a lot of your time. So, it is probably unwise to get multiple 1-year fixed mortgage terms over the entirety of your amortization period. • Potential Losses — Although fixed rates on mortgages might have decreased when your 1-year loan term is up, they may also have increased. Getting a 1-year fixed-rate mortgage may force you into a higher rate mortgage in the future.
The 1-Year Fixed Rate Mortgage Term: Historical Rates, Interesting Facts, and More
In Canada, the 1-year fixed mortgage term is not nearly as popular as many other loan terms such as the 5 year fixed rate mortgage. You might also want to know the following about 1-year fixed-rate mortgages:
• Six percent of all Canadian homeowners currently hold a 1-year fixed-rate mortgage. • Canadian government 1-year bonds determine the interest rates on 1-year fixed-rate mortgages. • From 2002–2012, the 1-year fixed mortgage rate in Canada averaged between 7.5 percent and 3.4 percent • In 1981, just like other Canadian mortgage rates, 1-year fixed mortgage rates were at a record high. For the 1-year fixed mortgage, it was approximately 21 percent. • The 1-year fixed mortgage rate is most popular with Canadians aged 35–54. • The economic recession that began in 2008 gave Canadians the lowest 1-year fixed mortgage rates in history.
Apply for a 1-Year Fixed Mortgage Rate
A 1-year fixed mortgage may be the best mortgage product for you. Choose an interest rate on this page to apply for a 1-year fixed-rate mortgage.
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