1-Year Variable Mortgage Rates
We do not currently publish a 1-year variable on the board. Several lenders will still quote one — ask us.
npm run rates <file> to replace it.What you are really buying with a variable
A variable rate is priced as a discount off prime. When the Bank of Canada moves, prime moves, and your rate moves with it — usually within a few days. What you get for that uncertainty is the cheapest exit in the market: three months' interest to break, no matter when.
One-year terms are for people who expect to be in a different position within twelve months — a sale, a bruised credit file about to clear, a rate outlook they want to wait out.
Under 20% down
You put less than 20% down and default insurance is on the file. The lender carries no loss exposure, so these are the lowest rates on the board — but the premium is added to your mortgage.
20%+ down, under $1M, 25-year amortization
You put 20% or more down but the file still fits portfolio-insurance rules, so the lender can insure it in bulk at its own cost. Priced between insured and uninsured, and tiered by loan-to-value.
Refinances, $1M+, 30-year amortization, rentals
The lender keeps the full risk: refinances, properties at or above $1M, amortizations past 25 years, and rentals. Rates sit highest here, typically 20 to 40 basis points above insured.
Get notified 90 days before your renewal
Your lender contacts you at 30 days, when you have no time to shop. We reach you at 90 — early enough to lock a hold and personalize your offers.
Questions
Is a 1-year variable mortgage right for me?
A variable makes sense if you can absorb a payment increase without stress and you may break the term early — variable penalties are three months' interest, versus an interest rate differential on a fixed that can run to five figures. It is a worse idea if a rate rise would genuinely hurt.
How is a 1-year term different from a 1-year amortization?
The term is how long this contract lasts — 1 year. The amortization is how long it would take to pay the mortgage off entirely, usually 25 or 30 years. At the end of the term you renew whatever is left. Almost nobody pays off a mortgage in one term.
What happens to my payment when prime moves?
It depends on the lender. Some adjust your payment; others keep the payment fixed and change how much of it goes to interest, which means a rate rise silently extends your amortization. Ask which kind you have — it matters a great deal in a rising market.
What is the penalty if I break it?
Three months' interest, on almost every variable in the market. On a $400,000 balance at 4.5% that is roughly $4,500.
The math is free. Acting on it is the point.
When you are ready to do something with these numbers, we will introduce you to a licensed broker who can put the file in front of lenders. Nothing here obliges you to.
Get matched with a broker