Selecting a 1-year mortgage term helps homeowners renegotiate the rate of interest with lenders after the end of tenure. There are no additional charges or penalties when you switch lenders after the one-year period. Homeowners have the flexibility to choose a new mortgage type with the best-fixed mortgage rates in Canada.
In case you are certain about the rates going up, it is always a better deal to lock at the existing lower rate for a longer-term. But if you are planning to shift somewhere else or are unsure about how long you would be staying then opting for a 1 year fixed mortgage rates Canada is always a better deal.
One should not confuse a one-year mortgage with the amortization period as it is simply the duration for which one has agreed to a fixed mortgage rate. In the case of a variable mortgage rate, the interest would have fluctuated depending on the market rates. At RateGuru, we make the entire process simpler and guarantee the best-fixed mortgage rates in Canada. Here you get a clear understanding of each type of mortgage along with the risks and rewards associated with them.
