Best 1-Year Fixed Mortgage Rates in Canada
Updated April 29, 2026.
Shortest fixed term
The 1-year fixed locks your rate for just twelve months. It exists for a narrow set of situations, and most homeowners don’t pick it.
Who picks it. Borrowers who expect rates to fall meaningfully within the year and want to roll into a much lower rate at the next renewal. Also: people in transitional situations (selling, divorcing, relocating) who need a place to park their mortgage briefly.
What drives the rate. Short-end Government of Canada bond yields, plus the lender’s spread. The 1-year is usually the most expensive fixed term when the yield curve is normal, and one of the cheaper fixed terms when the curve is inverted.
When it’s the right choice. Almost never as a long-term plan. Useful if you have specific evidence (BoC guidance, large bond market moves) that rates will be materially lower in 12 months and you want to be free to renegotiate then. Otherwise, you’re paying for a renewal cycle you’ll regret if rates don’t fall.
When to consider alternatives. If you want flexibility cheaply, variable typically beats 1-year fixed because the variable break penalty is just three months’ interest. If you want fixed-rate certainty, 3-year or 5-year fixed almost always offers a better rate.
How to read the table. The discounted rate on 1-year fixed is usually narrower (smaller broker discount) than longer-term fixed. Posted-vs-discounted spreads tend to be 0.10–0.40% rather than the 0.50–1.00% common on the 5-year. Some lenders don’t actively promote 1-year terms; if a row is missing here, that lender may not publish a 1-year rate.
Rates shown are updated daily and are not an offer of credit. Actual rates require lender approval and may differ. Discounted rates are the bank's own published special-offer rates; a mortgage broker can often secure a lower rate than what's shown. See our methodology.
| Rank | Lender | Posted | Discounted | |
|---|---|---|---|---|
| 1 | CIBC | | 4.74% | Visit lender → |
| 2 | RBC Royal Bank | | 4.89% | Visit lender → |
| 3 | Tangerine | | 5.99% | Visit lender → |
| 4 | TD Bank | | — | Visit lender → |
| 5 | BMO Bank of Montreal | | — | Visit lender → |
| 6 | Scotiabank | | — | Visit lender → |
| 7 | National Bank of Canada | | — | Visit lender → |
| 8 | Meridian Credit Union | | — | Visit lender → |
| 9 | Alterna Savings | | — | Visit lender → |
| 10 | Desjardins | | — | Visit lender → |
| 11 | Vancity | | — | Visit lender → |
| 12 | Coast Capital Savings | | — | Visit lender → |
| 13 | Servus Credit Union | | — | Visit lender → |
| 14 | ATB Financial | | — | Visit lender → |
Common questions
Who actually picks a 1-year fixed?
It's a small minority, typically borrowers in transitional life situations (selling, divorcing, relocating within the year) or those who have specific evidence rates will be materially lower in 12 months and want to renew into them.
Why is the 1-year fixed often more expensive than longer terms?
Short-end bond yields are usually higher than long-end yields when the yield curve is normal. In an inverted yield curve (like recent years), the 1-year fixed can actually be cheaper than the 5-year, uncommon historically but increasingly normal.
Is variable a better alternative?
Often yes. Variable mortgages can typically be broken with just three months' interest as penalty, giving you similar flexibility at usually a lower rate.