Newfoundland Mortgage Payment Calculator
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Jamie David, Sr. Director of Marketing and Mortgages
Newfoundland mortgage calculator
A mortgage calculator is one of the most useful tools you can have when you're looking for a mortgage, which is typically one of the largest financial commitments you'll ever make in your life. However, mortgages regulations and fees vary across Canada, so if you're looking for a mortgage in Newfoundland, you really need a mortgage calculator that is specifically geared for the Newfoundland market.
Being such a geographically small province, Newfoundland's mortgage rules are particularly unique. The good news is that the calculator above automatically takes all of these into account! That said, it's important to have a good understanding of the rules and fees that are specific to Newfoundland, in addition to the federal regulations that apply across the country. We've spelled these out for you below.
Canada-wide mortgage regulations
There are a series of mortgage regulations set at the federal level to protect both borrowers and lenders. These include rules on minimum down payments, maximum amortization periods (the total life of the mortgages), and mortgage default insurance. These rules are automatically included in the Newfoundland mortgage calculator:
- For Canadian homes under $1,000,000, the minimum down payment is 5% of the first $500,000, then 10% of the remaining property price. For homes valued over $1,000,000, the minimum down payment is a flat 20%.
- The maximum amortization in Canada is 25 years for mortgages with down payments of less than 20%. For other mortgages, the maximum amortization period is 35 years.
- Mortgage default insurance, also known as CMHC insurance, must be purchased for mortgages with down payments of less than 20%. This insurance covers lenders in the case a borrower defaults, though the premiums are paid by the borrower. Visit Ratehub.ca’s CMHC insurance page for more details.
Newfoundland mortgage regulations
The majority of mortgage and property-specific taxes and fees are set at the provincial or municipal level. In Newfoundland, purchasers are responsible for paying Newfoundland’s provincial land transfer tax and must select from mortgage rates in Newfoundland.
Mortgage rates in Newfoundland
Mortgage brokers and banks can charge different mortgage rates in different provinces. Ratehub.ca has a comprehensive database of the best mortgage rates in Newfoundland, which are also listed in the Newfoundland payment calculator above.
Despite the fact that mortgages rates can vary between provinces, they tend to be reasonably common between regions. More competition between lenders can drive rates down, however. This doesn't really benefit Newfoundland, unfortunately. Being such a small province, there are fewer mortgage lenders and brokers that operate in the province compared to other parts of Canada. With a less competitive mortgage market than the bigger provinces, rates in Newfoundland may be slightly higher.
To help you obtain the right mortgage for you, it's always a good idea to get in touch with a mortgage broker. A broker is essentially like a one-stop shop for you, as they are industry experts with access to a wide variety of exclusive mortgage rates from different lenders. They can provide expert, personalized advice for you at no cost, making them immensely useful when you're trying to get the mortgage that best suits your needs.
Land transfer tax (LTT) in Newfoundland
Under the Newfoundland Registration of Deeds Act, all property transfers are subject to a land transfer tax, which is based on the purchase price. The tax is a $100 flat fee for the first $500 of the purchase price, plus 0.40% of any amount above $500, levied on each $100 or part thereof. For more information, see Ratehub.ca’s Newfoundland land transfer tax page.