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Compare mortgage interest rates today in Newfoundland and Labrador (NL)

Want to find out which banks to call on for cheap mortgage rates in NL, Canada? Wondering what the average mortgage rate in NL is? Who has the best 6-month mortgage rates in NL? Who has the lowest 5-year mortgage rates in NL? You’ve come to the right website.

LowestRates.ca makes it easy for homebuyers to pinpoint which lenders have the best mortgage rates in NL for 2021 from 50+ banks and brokers across Canada.

Our service is free to use and there’s no obligation of any kind to go with the rate we offer.

In just a few minutes, you can see who has the best mortgage rates in Newfoundland and Labrador and what is the best mortgage rate in Newfoundland and Labrador.

As your online NL mortgage agent, we have the answers to all these questions and more. See for yourself. Check out how much you can save by comparing rates in the charts below.

The best current mortgage rates in Canada

Check out today's best mortgage rates in Canada by type and term.

Rates are based on an average mortgage of $300,000

	Insured ? The rates in this column apply to borrowers who have purchased mortgage default insurance. This is required when you purchase a home with less than a 20% down payment. The home must be owner-occupied and the amortization must be 25 years or less.	80% LTV ? The rates in this column apply to mortgage amounts between 65.01% and 80% of the property value. The home must be owner-occupied and have an amortization of 25 years or less. You must have purchased it for less than $1 million. These rates are not available on refinances. Refinances require "Uninsured" rates.	65% LTV ? The rates in this column apply to mortgage amounts that are 65% of the property value or less. The home must be owner-occupied and have an amortization of 25 years or less. You must have purchased it for less than $1 million. These rates are not available on refinances. Refinances require "Uninsured" rates.	Uninsured ? The rates in this column apply to purchases over $1 million, refinances and amortizations over 25 years. More info on the differences between insured and uninsured rates.	Bank Rate ? Bank Rate is the mortgage interest rate posted by the big banks in Canada.
1-year fixed rate	Insured 5.04%	80% LTV 5.15%	65% LTV 5.15%	Uninsured 6.63%	6.29%
2-year fixed rate	Insured 4.74%	80% LTV 4.79%	65% LTV 4.74%	Uninsured 4.74%	5.59%
3-year fixed rate	Insured 4.14%	80% LTV 4.14%	65% LTV 4.14%	Uninsured 4.49%	4.89%
4-year fixed rate	Insured 4.29%	80% LTV 4.14%	65% LTV 4.14%	Uninsured 4.49%	4.74%
5-year fixed rate	Insured 3.99%	80% LTV 3.99%	65% LTV 3.99%	Uninsured 4.14%	4.59%
7-year fixed rate	Insured 4.44%	80% LTV 4.39%	65% LTV 4.39%	Uninsured 5.9%	5.5%
10-year fixed rate	Insured 5.09%	80% LTV 5.29%	65% LTV 5.29%	Uninsured 5.8%	7.14%
3-year variable rate	Insured 4.6%	80% LTV 4.7%	65% LTV 4.6%	Uninsured 4.6%	6.85%
5-year variable rate	Insured 4.3%	80% LTV 4.55%	65% LTV 4.3%	Uninsured 4.3%	4.65%
HELOC rate	Insured N/A	80% LTV N/A	65% LTV N/A	Uninsured N/A	N/A
Stress test	Insured 5.25%	80% LTV 5.25%	65% LTV 5.25%	Uninsured 5.25%	N/A

Variable Rates

As low as

4.35%

Fixed Rates

As low as

4.24%

Cha-ching! Our rates are always lower than the posted bank rates.

Current lowest posted bank rate

7.24%

Conventional vs. high-ratio mortgages: which is cheaper?

There are so many types of mortgages out there that it’s easy to get confused. To get you started, you’ll need to consider the mortgage down payment on your NL home. If you’re able to put down more than 20% of the value of the home as a down payment, you’ll be offered a conventional mortgage. On the other hand, if you put down less than 20% of the purchase price of the home as a down payment, you’ll be offered a high-ratio mortgage. You can get both on LowestRates.ca.

We’ve pulled historical mortgage rates to show you the difference between high-ratio and conventional mortgages. Keep in mind that homebuyers with high-ratio mortgages are required to purchase mortgage insurance from the CMHC, which means rates are often lower.

Check out our chart to see a comparison of high-ratio mortgages and conventional mortgages in Newfoundland and Labrador.

Conventional 5-year fixed mortgage rates vs. high ratio 5-year fixed mortgage rates in Newfoundland and Labrador

Date	Average Conventional Rate	Average High Ratio Rate
12/23	5.96%	5.52%
01/24	5.64%	5.27%
02/24	5.36%	5.09%
03/24	5.21%	4.97%
04/24	5.14%	4.95%
05/24	5.18%	5.00%
06/24	5.13%	4.97%
07/24	5.07%	4.93%
08/24	5.20%	5.03%
09/24	5.17%	4.97%
10/24	4.85%	4.59%
11/24	4.76%	4.48%

Last Updated: December 1, 2024

Fixed rate vs. variable rate mortgages: which is cheaper?

You can obviously save a ton of money by shopping around for a mortgage, but how do the best variable rates stack up against the best fixed house mortgage rates in NL? To find out, we compared rates on a 5-year fixed rate mortgage in NL vs. 5-year variable rate mortgage in NL.

Historically, variable mortgage interest rates in NL, Canada have been lower than fixed ones. Choosing a variable rate can result in huge savings over time. However, at a few points in 2019 and 2020, rates on 5-year variable mortgage and 5-year fixed mortgage in NL were only marginally different.

Regardless of which mortgage type you choose, you’ll find a low mortgage rate in NL by researching on LowestRates.ca.

5-year fixed vs. 5-year variable mortgage rates in Newfoundland and Labrador

Month	Fixed	Variable
12/23	5.63%	6.50%
01/24	5.40%	6.39%
02/24	5.23%	6.46%
03/24	5.08%	6.40%
04/24	5.01%	6.39%
05/24	5.07%	6.39%
06/24	5.02%	6.32%
07/24	4.93%	6.13%
08/24	5.00%	6.16%
09/24	5.02%	6.20%
10/24	4.75%	5.77%
11/24	4.65%	5.40%

Last Updated: December 1, 2024

Factors that affect your Newfoundland and Labrador mortgage rate

If you want a mortgage company or broker in NL to lend you money for a mortgage, they will need to feel comfortable with your financial situation. To figure out if you represent a low-risk or high-ris borrower, the lender will weigh a few different factors.

Down payment: One of the first signs that you are most likely a low-risk borrower is if you are able to make a down payment of 20% or more on the purchase of your new home.

Debt service ratios: As a new homebuyer, your mortgage payment will probably become your biggest monthly debt. Meanwhile, you’ll still have other bills to pay every 30 days such as a car loan, school loan, utilities, etc. To qualify for the preferred mortgage rates from NL banks, lenders first need assurances that you’ll be able to comfortably meet all of these obligations each month. To gauge whether you can, lenders employ two formulas to compare your monthly income vs. your monthly expenses:

Gross Debt Service Ratio (GDS): This calculation determines what portion of your income each month will be going towards property expenses i.e. mortgage payments, property taxes, utilities, etc. All of these expenses are then added up and divided by your gross annual income. If the percentage is 32% or less, the bank or lender will be confident in your ability to pay your housing costs each month.
Total Debt Service Credit Ratio (TDS): This calculation takes all of the property expenses used to calculate the GDSR and adds on any other monthly payments you may have e.g. student loan, car loan, minimum credit card payments, etc. The total of these costs is then divided by your gross annual income. If the percentage is 40% or less, the mortgage company will be confident in your ability to make all of your payments each month.

Credit score: Lenders like to look at your credit score because it’s a rating of how you have behaved previously as a borrower. The higher your credit score the less risk you represent as a borrower and the more likely you will qualify for a conventional mortgage. There’s no such thing as a bad credit mortgage in NL. If you have a bad credit score it’s very unlikely any lender will give you a mortgage.

To calculate your credit score, four areas of your personal credit management are reviewed. They are: whether you make payments on time on both installment payments (like a car loan) and revolving credit payments (credit cards); whether you are responsible with the credit limits available to you (i.e. using less than 20%-30%); whether you’ve maintained long-standing relationships with banks and lenders, and whether you’ve avoided opening too many new accounts.

Income: A lender’s greatest concern is how reliable a borrower will be at making their mortgage payment each month. Having a dependable income stream and stable job will go a long way towards alleviating that concern for any lender who is considering you for a mortgage.

Typical mortgage amount in Newfoundland and Labrador

To calculate what the size of the mortgage on your Newfoundland and Labrador property will be depends on where you live, your down payment and your mortgage interest rate.

On a Newfoundland and Labrador detached home worth $269,700, a buyer who can make a 20% down payment will have to borrow $215,760.

On the same home, a buyer who can only make a 10% down payment will have to borrow $242,730.

Plus, keep in mind, if your down payment is less than 20% you will need to get mortgage loan insurance through the Canada Mortgage and Housing Corporation (CHMC). This will protect your lender if for some reason you are unable to make your mortgage payments

With CMHC mortgage loan insurance you can qualify for a mortgage for up to 95% of the purchase price of your Newfoundland and Labrador home.

Newfoundland and Labrador’s housing market and home prices

The benchmark price for single-family homes in St. John's was $269,700, up 5.9% on a year-over-year basis in January 2021.

The benchmark price for townhouse/row units was $263,500, edging up 3.9% compared to a year earlier.

The benchmark apartment price was $226,000, this was little changed, down only 0.4% from year-ago levels.

Newfoundland and Labrador closing costs and land transfer tax

Besides your new mortgage, you will need to budget for a few other costs that come with the purchase of a new home.

Property valuation (appraisal) fee: When you enter into a mortgage agreement with a lender, your house becomes the collateral the lender can use to get their money back if you default on your mortgage. In order to confirm that the value of your new home will be equal to or greater than the amount of your mortgage, the lender will want the value of your new home to be independently appraised. This property valuation or appraisal will cost in the range of $400 to $500.

Home inspection fee: Your prospective new home may look perfect to you but there could be some underlying issues that you can’t see or recognize. By hiring a home inspector before you commit to the purchase, you’ll know for sure whether the house is fine or requires some repair work. Expect to pay around $450 plus taxes for a certified home inspection.

Title insurance: Sometimes issues with your new home may not come to light until well after you’ve purchased the property. With title insurance, you’ll be protected. It covers you against any losses you might incur due to undetected or unknown defects to the property. Approximately $250. Purchased it through your lawyer.

Mortgage default insurance: If you can only afford a down payment on your new Newfoundland and Labrador home that is less than 20% you are obligated to purchase mortgage loan insurance through the Canada Mortgage and Housing Corporation (CHMC). The cost of the insurance is calculated by taking the mortgage loan amount and dividing it by the purchase price.

Legal fees: Since the purchase of your new Newfoundland and Labrador home is a legal transaction it will require the services of a real estate lawyer in order to complete it. Expect to pay between $500 to $800.

Land transfer tax: Any time a property changes ownership from one person to another land transfer tax must be paid. In Newfoundland and Labrador, the land transfer tax is charged on the property value and mortgage amount. Here’s how it breaks down:

On the property value, the land transfer tax is $100 on a property that is worth $500 or less. On a property that is worth greater than $500 the land transfer tax is $100 plus $0.40 for each additional one hundred dollars of value.
On the mortgage value, the land transfer tax is calculated the same way (i.e. it’s $100 on a mortgage that is worth $500 or less). On a mortgage that is worth greater than $500, the land transfer tax is $100 plus $0.40 for each additional one hundred dollars of value.

Home insurance: Homeowners insurance covers the cost to repair or rebuild your home after events like fire, smoke, theft, vandalism, a falling tree, or damage caused by weather such as lightning, wind, or hail. Most standard homeowners insurance policies also cover the replacement cost of furniture, clothing, and other possessions that you keep in your home.

Information for first-time homebuyers in Newfoundland and Labrador

To help offset the purchase price of your new Newfoundland and Labrador home there are three government programs you may be able to take advantage of. Plus, there is one tried and true method that you can use, right off the bat, to lower the cost of your mortgage.

The simplest way to reduce your mortgage right from the get-go is to make an initial down payment of 20% or more on the purchase price of your new house. Doing so will, in all probability, ensure you qualify for the lender’s lowest mortgage rate which will lower the amount of your monthly payment and save you thousands of dollars in interest over the lifetime of your mortgage.

The other reason making a down payment of 20% or more will save you money is it will mean you qualify for a conventional mortgage rather than a high ratio one. If you could only qualify for a high ratio mortgage you would have to get mortgage insurance, through the Canadian Mortgage and Housing Corporation (CMHC), which would be an additional cost every month.

You may be wondering if there is such a thing as a no-down-payment mortgage in NL. The answer is no. You can’t get a 0 (zero) down mortgage in NL. In fact, no-down-payment mortgages were banned by the Canadian government in 2008.

What if you don’t have the money for a down payment? One option is you could borrow the money for a down payment from a private lender. But be aware, private mortgage rates in NL can be expensive. It’s an unregulated industry, so the broker and lender can set the rate. In some cases, the interest rate can be as high as 20%.

An easy way to see how much mortgage you can afford is to use this NL mortgage affordability calculator provided by the CMHC. Want to see how much a lower interest rate can reduce the monthly mortgage payment on your new NL home? Try this mortgage rates and payment calculator.

Here are some other tax credits that can reduce the cost of buying your first home.

First-time Home Buyers Incentive: Eligible first-time homebuyers who have the minimum down payment for an insured mortgage can apply to finance a portion of their Newfoundland and Labrador home purchase through a shared equity mortgage with the Government of Canada. The program offers 5 or 10% of the home’s purchase price to put toward a down payment. This addition to your down payment will lower your mortgage carrying costs, making homeownership more affordable.

First Time Homebuyers Tax Credit: This is a $5,000 non-refundable tax credit designed to help buyers manage the closing costs of purchasing a new home. This credit is applicable across Canada.

GST/HST New Housing Rebate: As a new homeowner in Newfoundland and Labrador, you may be entitled to a rebate on some of the HST you paid on the purchase price or cost of a new-build home or a substantially renovated home. GST/HST New Housing has all of the details.

Federal Home Accessibility Tax (HATC) for Seniors and Persons with Disabilities: If you’ve purchased a house in Newfoundland and Labrador and made additions, alterations, or renovations to it in order to make it more accessible to a disabled person or senior citizen, you can take advantage of the HATC tax credit to deduct up to $10,000 from the amount of taxes you owe to the CRA.

Your questions about Newfoundland and Labrador mortgages, answered.

What’s the difference between a mortgage term and an amortization period?

Mortgage term: The mortgage term is the amount of time that you commit to your mortgage rate, lender and the terms and conditions of the contract. At the end of the term, you’ll renew your contract with the mortgage company for the remaining principal at a new rate. The process repeats until you’ve paid off the mortgage on your Newfoundland and Labrador home. A mortgage term can vary in length, from six months to 10 years, with the most common term in Canada being five years.

Amortization period: The amortization period is the amount of time it will take you to pay off your entire mortgage. In Canada, the maximum amortization period is 35 years. But, if your down payment was less than 20% and you were required to purchase mortgage insurance from the Canadian Mortgage Housing Corporation (CMHC), then your maximum amortization period is 25 years.

What’s the difference between an open mortgage vs. a closed mortgage?

The mortgage rate that you qualify for from a Newfoundland and Labrador bank will most likely vary depending on whether you get an open mortgage or a closed mortgage.

With an open mortgage, you have the option to pay it off whenever you want. If you have a closed mortgage and want to pay it off before your mortgage term is over, you will have a penalty to pay.

Are there any advantages to a closed mortgage? Are closed mortgage rates in NL available?

Yes, a closed mortgage generally offers a lower interest rate than an open mortgage. Meanwhile, open mortgage rates in NL are usually variable and a little higher.

How much does it cost to live in Newfoundland and Labrador?

Owning a home: The average price of a residential home in Newfoundland and Labrador as of January 2021 is $$269,700.

Renting a home: Average cost in Newfoundland and Labrador as of January 2021.

1-bedroom Apartment: $843/mth
2-bedroom Apartment: $905/mth.
3-bedroom Apartment: $1,400/mth.

Car insurance: Newfoundland and Labrador drivers pay the highest auto insurance premiums in Atlantic Canada and the Maritimes, and the fourth-highest yearly premiums for auto insurance in the country. The average cost of an insurance policy for a Newfoundland and Labrador driver is $1,168.

How much does getting a lower interest rate matter in Newfoundland and Labrador?

This question is one of the most commonly asked. So, what’s the answer? A lot. Even getting your new mortgage at a rate that’s just a quarter percent less than what another lender is offering can make a huge difference. You could literally save thousands of dollars in interest over the lifetime of your mortgage.

But don’t stop there. There are a few other ways you can reap some savings on your new mortgage.

For example, make sure you get a mortgage that boasts prepayment privileges. Simply put this will allow you to put extra money on your mortgage. Where will that extra money come from? Well, in the future you may inherit money from a relative or you could get a bonus or raise from work. Being able to put extra money on your mortgage will reduce your principal and save you thousands of dollars in interest.

Even if you think you’ve found your dream house, someday you might move. Maybe because you require more space to accommodate your growing family. Or perhaps you get a job transfer that takes you to another province. Give yourself options for down the road by ensuring your new mortgage is portable. With a portable mortgage, you can take your mortgage with you and use it to finance your new home. This will save you money because you will avoid the charges that would come about if you had to close one mortgage and open a new one.

Still curious about what are the current mortgage rates in NL? Who has the best mortgage rates in NL? Comparison shop with LowestRates.ca.

Your questions about LowestRates.ca, answered.

How are mortgage rates determined on LowestRates.ca?

LowestRates.ca works with 50+ banks and brokers to bring you competitive mortgage rates from lenders in Canada and we’re always adding new ones. We work with our partners to obtain their best deals and offers, and then we let them compete for your business. All you have to do is answer a few questions, and in minutes you’ll be provided with today’s mortgage interest rates mortgage in NL. There’s no obligation, but you can choose to speak with our broker partner to secure your best rate and see if you're eligible for more savings.

Is it safe to get a mortgage online?

Yes, it’s safe — you no longer need to visit a bank branch or mortgage broker’s office in person to apply for a mortgage. It’s becoming increasingly common for Canadians to apply for mortgages online. LowestRates.ca only works with reputable, trustworthy financial institutions. Your credit score won’t be affected and your information is secure. We don’t share your information with anyone unless you want to connect with a mortgage broker. We take care of the heavy lifting by comparing the market for you and can connect you with the best mortgage lenders in the country.

How do I know I’m getting the lowest rate?

We have a strong selection of lenders on LowestRates.ca including the big banks and many independent providers and we’re adding more lenders all the time. This ensures we’re always delivering you a competitive rate. Even if you’re not ready to commit to anything, you can use our site as a starting point for research (it’s totally free, and you’re under no obligation).

The better informed you are, the more likely you'll negotiate a better deal for yourself. And, really, that’s what we care about the most.

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