Current New Brunswick mortgage rates
The rate table shows 5-year fixed mortgage rates in New Brunswick. To compare other rate types and terms, click on the filters icon beside the down payment percentage.
How much can I save by comparing mortgage rates in New Brunswick?
When you're trying to get a mortgage in New Brunswick, one of the best things you can do is to compare mortgage rates from multiple lenders. This ensures you don't miss out on the best deal. Comparing mortgages from multiple providers can help you find a lower mortgage rate, which can save you thousands of dollars over the course of your mortgage.
Let's look at an example. For a $500,000 mortgage with a 20-year amortization period, a 3.50% rate will see you pay $79,028 in interest over your first 5-year term. With a 3.25% rate, you'll pay just $73,250, a savings of $5,778.
Why compare New Brunswick mortgage rates on Ratehub.ca?
The process of comparing mortgage rates, terms and conditions between multiple providers can be a confusing one. However, it's one of the most important steps you should take to get the right mortgage for you. With Ratehub.ca, you can compare rates from the big banks, top mortgage brokers and small lenders, all in one place. All this, at no cost to you.
What’s the difference between fixed and variable mortgage rates?
A fixed-rate mortgage sets your rate in stone for your entire term, which can be from 1 to 10 years. This gives you steady monthly payments for the length of your term.
A variable-rate mortgage, on the other hand, changes alongside the prime rate of your lender. That means when the prime rate goes up or down, your personal rate will also increase or decrease. Historically, variable rates have averaged out to be lower than fixed-rates over time, but they do carry more risk.
Which is better: fixed or variable mortgage rates?
The choice between fixed or variable rates depends on your personal circumstances. Fixed rates offer more stability than variable rates, as they have steady monthly payments, and protect you from changes to the prime rate.
Variable rates have been historically cheaper over the long term. However, they carry more risk than fixed rates. If you're worried that your household budget won't be able to accommodate increased mortgage payments, variable rates might not be the best option. However, if you think rates are likely to drop, and your budget has enough space to increase your monthly payments in case you're wrong, variable rates might suit you.
Read our guide on fixed vs. variable mortgage rates for more details.
What are pre-payment options?
Your pre-payment options determine how much you are able to increase your monthly payments during your term, as well as how many (if any) lump-sum payments you are allowed to make without penalty. For example, if you sold your house halfway through your mortgage, your pre-payment options would determine whether you can use the sale proceeds to pay off your mortgage early.
You'll have the option of a closed or open mortgage, which will determine your pre-payment options, by and large. A closed mortgage will have lower rates, but limited pre-payment options, while open mortgages are the reverse.
Should I get an open or closed mortgage in New Brunswick?
Open mortgages offer more pre-payment options but have higher rates. Closed mortgages have lower rates but limit your pre-payment options. Both have their place, and they have different applications.
Open mortgages can be especially useful if you plan to sell your home within your next mortgage term, or if you expect to receive more money soon, such as a pay rise or inheritance. An open mortgage will allow you to use that cash to pay more off your mortgage without penalty.
Closed mortgages are more popular in Canada, because most people don't plan to sell their homes or receive additional cash during their mortgage term.
What is a mortgage rate hold?
A rate hold allows you to hold a mortgage rate for a certain period of time, typically between 60-120 days, depending on the lender and offer. For variable rates, you won’t lock in the rate itself, but its relation to prime. It’s important to note that though a rate hold guarantees you a mortgage rate for a specific timeframe, it doesn’t guarantee that your mortgage application will be approved.
With mortgage rates in New Brunswick and across the country rising steadily, you may want to find a mortgage with a rate hold until your renewal or closing date.
Should I use a mortgage broker in New Brunswick?
The job of a mortgage broker is to compare the products and rates of multiple mortgage providers on behalf of their clients. This means that by using a mortgage broker, you'll have access to multiple mortgage products without having to do the hard work yourself. Brokers are mortgage experts, and can quickly identify the products that are available on the market that will suit your needs.
Mortgage brokers also have access to a range of mortgage rates that are not accessible to the retail market. This is because they are often given volume discounts from lenders, along with unique, broker-exclusive products.
It may be convenient to apply for a mortgage directly with your current bank, but it will only be able to offer you its own products. This means you could be missing out on a mortgage with lower rates, or that better suits your needs.
So should you use a broker when you compare mortgage rates in New Brunswick? Consultations with mortgage brokers are free, so you have nothing to lose by speaking with one.
WATCH: December 6, 2023 Bank of Canada announcement
Compare current mortgage rates across the Big 5 Banks and top Canadian lenders. Take 2 minutes to answer a few questions and discover the lowest rates available to you.
Best fixed rate in Canadasee my rates
Jamie David, Sr. Director of Marketing and Mortgages
Getting a mortgage is a big financial commitment, and finding a great mortgage rate is one of the best things you can do to make your mortgage more manageable. Luckily, how to get a lower mortgage rate isn’t a secret - all you need to do is plan ahead.
Our mission at Ratehub.ca is to make it easy to compare rates from Canada's big banks, credit unions and smaller lenders so that you can make the best financial choice. Read on to learn how to get a lower mortgage rate in New Brunswick.
Best mortgage rates in New Brunswick +
|5.19%||5 years||Fixed||Canadian Lender|
|5.64%||4 years||Fixed||Canadian Lender|
|5.89%||3 years||Fixed||Canadian Lender|
|5.99%||7 years||Fixed||Big 6 Bank|
|6.24%||2 years||Fixed||Big 6 Bank|
New Brunswick at a glance
- Population: 800,000
- Average Home Price: $279,500 in April 2023, a -5.4% year-over-year decrease
- Average Household Income: $59,347
- Percentage of Homeowners: 74%
Fun Facts About New Brunswick
- The New Brunswick Museum in St. John is Canada’s oldest museum still in operation, and is home to the world’s oldest intact shark fossil, which is about 400 million years old.
- Since 1969, New Brunswick has been the only province in Canada to have both English and French as its official provincial language. Over a third of the population is bilingual.
What is the best mortgage rate in New Brunswick?
The best mortgage for you is the one that best suits your needs, and offers a great rate. It's important to remember that the best mortgage is not always the mortgage with the lowest rate. While a low rate is important and can save you thousands of dollars, you also need to make sure that the term, conditions, and features of your mortgage suit your needs.
What factors affect the mortgage rate I get?
While comparing mortgage products is an important part of getting the best possible mortgage rate, you’ll still need to personally qualify for your final offer. There are several factors that will affect the rate you’re able to qualify for. Here are some of the major ones:
- Down payment: In Canada, property purchases require a minimum down payment of between 5% and 20%, depending on the purchase price. However, if your down payment is less than 20%, you’ll have to pay for mortgage default insurance. This will cost you more, but it will make your mortgage less risky, from your lender’s perspective. This generally results in a lower mortgage rate. Note that even with a lower mortgage rate, it's still worth avoiding the cost of mortgage default insurance, so you should always aim to have a down payment of at least 20%.
- Amortization period: Mortgages with amortization periods of more than 25 years generally have higher interest rates. This is because this type of mortgage can't be insured with mortgage default insurance. Despite this, mortgages with longer amortization periods can be more financially manageable, because they have lower monthly payments.
- The purpose of the property: You’ll generally be offered a higher rate on a mortgage for a property that you don’t plan to personally live in.
- Mortgage type: A refinanced mortgage, or a mortgage with features like a HELOC, will typically come with a higher rate than a mortgage for a renewal or new purchase.
- Credit score: A low credit score may mean you cannot get approved by an ‘A lender’, like a big bank or credit union. If you’re forced to take a mortgage from a ‘B lender’, you’ll probably be charged a higher rate.
New Brunswick mortgage rates: Historical trends
New Brunswick mortgage rates rise and fall, as do rates across Canada. Here’s a quick snapshot of the lowest mortgage rates in Canada over the past few years, to give you an idea of where we are today.
Source: Ratehub Historical Rate Chart
Land transfer tax in New Brunswick
New Brunswick, along with most Canadian provinces, charges a land transfer tax on all property transfers (the only provinces that don’t are Alberta and Saskatchewan). Unlike the marginal tax rates applied by other provinces, New Brunswick charges a simple, flat rate.
All property transfers in New Brunswick attract a 1% land transfer tax on either the property price or the assessed value, whichever is greater.
New Brunswick first-time home buyer programs
Unlike some other provinces, New Brunswick does not offer a rebate on land transfer tax for first-time home buyers. However, first-time home buyers in New Brunswick are still eligible for all relevant federal government programs. Learn more by reading our guide to first-time home buyer programs in Canada.
Jamie David, Director of Marketing and Head of Mortgages
Jamie has 15+ years of business and marketing experience. She contributes her mortgage expertise to The Globe and Mail and authors Ratehub’s mortgage and homebuying guides. read full bio