Best 1-Year Fixed Mortgage Rates In Canada

It is worth comparing a 1-year  fixed-rate mortgage to a 5-year one since most Canadians prefer a 5-year term mortgage. Let’s see which mortgage term option is better for you. 

When deciding between a 1-year  fixed-rate mortgage, you should consider several factors 5-year fixed-rate mortgage. The below factors should be your starting point. 

You should consider a 1-year  fixed-rate mortgage if: 

• If you want medium-term stability with your outgoing financing; 
• You are not sure about living on the property for more than a year; 
• Do you think your financial and lifestyle situation could change within the next year, which will warrant you to make changes to your mortgage financing; or  
• You are considering a significant expenditure that will require you to cash out the equity in your home to finance it. This expenditure can be tuition for your children, medical bills, or investments.

You should consider a 5-year  fixed-rate mortgage if: 

• If you want a predictable financial expense beyond one or four years; 
• You plan to live in the house for the next five years to build substantial equity in the property; or 
• You are not expecting any lifestyle or economic changes in the next five years, which may warrant you to renegotiate your mortgage contract before the end of the 5-year  term.