Best Mortgage Rates in Newfoundland
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Newfoundland mortgage rate update: August 2025
Variable rates are holding steady after the latest Bank of Canada interest rate decision.
Fixed rates are more likely to increase than decrease in August.
August could be a long month for Newfoundland's mortgage shoppers.
On July 30, the Bank of Canada held its overnight rate at 2.75%. It was the Bank's third consecutive rate hold, and came as no surprise.
The rate hold means borrowers are stuck with today's variable mortgage rates until at least September 17, when the BoC is scheduled to make its next rate decision. Brokerages currently offer the lowest variable rates — around 4%. You might pay significantly more elsewhere.
At least variable rates are stable. Fixed mortgage rates could spend the rest of the summer inching up.
That's because government bond yields, which help determine lenders’ fixed rates, spent July on a steady upward trek. Yields tapered off somewhat toward the end of July, but they will begin August higher than they’ve been since January. When yields rise over an extended period of time, lenders often respond by increasing their fixed rates.
Fixed rates crept up here and there in the final days of July, but not to the extent that signals a wholesale shift. You can still find three- and five-year fixed rates advertised at around 4.1% at some mortgage brokerages.
Whether fixed rates rise further in the coming weeks is hard to predict, especially in the current economic climate. But it's a definite possibility. If you're considering getting a fixed-rate mortgage this summer, get pre-approved and lock in a rate as soon as possible.
What's a good mortgage rate in Newfoundland right now?
As of July 2025, you can find the odd three-year variable mortgage rate for around 4% at some Newfoundland mortgage brokerages, but five-year variable rates, three-year fixed rates and five-year fixed rates are generally 4.1% or higher.
2025 Newfoundland mortgage rate forecast
Mortgage rates may decrease further in the second half of 2025.
The Bank of Canada is expected to reduce its overnight rate again twice before the end of the year, which would lower variable mortgage rates by at least 0.5% versus today’s levels.
Fixed mortgage rates will likely continue hovering between 3.75% and 4.25% for the remainder of 2025.
Read more about the Bank of Canada's latest rate announcement.
The BoC makes policy interest rate announcements eight times a year. Find out how its latest decision might impact Canada's housing market.
Newfoundland housing market update
The first half of 2025 was an overwhelmingly positive period for the Newfoundland housing market. Home sales from January to June were 13.4% higher than during the same period last year. In June, sales were up 13.1% year-over-year, and 12.4% higher than the 10-year average for the month.
Strong demand and declining inventory translated to higher prices in many parts of the province. The provincial benchmark price, $325,000, was almost 11% higher than a year ago, while the benchmark price in St. John’s rose 12.3% to reach $387,800.
Newfoundland home buyer resources
Newfoundland first-time home buyer programs
First-time home buyers who’ve already been pre-approved for a mortgage can apply to a government program to receive grants of up to $1,500 plus a repayable loan of up to 5% of the home’s purchase price. The interest rate on the loaned amount is capped at the prime rate minus one percent, which is likely to be less than market rates. To be eligible, your household income can’t exceed $95,000, and your home price must fall under the limit, which varies by location.
Land transfer taxes in Newfoundland
Newfoundland doesn't technically have land transfer taxes, but you'll still pay a fee to register your mortgage.
- The fee is $100 plus $0.40 for every $100 of your home's value above $500.
Mortgage calculators
Frequently asked questions
How do Newfoundland lenders determine mortgage rates?
How do Newfoundland lenders determine mortgage rates?
The mortgage rate you’re offered by a lender in Newfoundland will be based on two primary factors; one depends on the state of the economy, the other on your financial situation.
Economic factors
Variable mortgage rates are influenced by the Bank of Canada’s overnight rate. When the overnight rate increases or decreases, a lender’s prime rate follows suit. Variable mortgage rates are based on a lender’s prime rate, so as the prime rate rises or falls, so do variable rates.
Fixed mortgage rates are determined by activity in the government bond market, particularly the yields on one-, three- and five-year bonds. Fixed mortgage rates follow the movement of those yields.
Your financial situation
Factors specific to you also affect the rates you’re offered. These include:
Your credit score.
Your income.
Your total debts.
The loan type you choose.
The amount you’re borrowing.
The term length and amortization period of your loan.
Lenders look for signs of risk when assessing these aspects of your finances. The riskier they perceive you to be as a borrower, the higher the rate they’re likely to offer you.
Will mortgage rates come down in 2025?
Will mortgage rates come down in 2025?
The Bank of Canada overnight rate has been unchanged since March. If the bank lowers the rate, lower variable mortgage rates will follow. Fixed mortgage rates will likely continue hovering between 3.75% and 4.25% for much of the year.
How do you qualify for a lower mortgage rate in Newfoundland?
How do you qualify for a lower mortgage rate in Newfoundland?
Some factors behind rates are beyond your control, but there are steps you can take to possibly qualify for the best mortgage rates. For example, you can:
Improve your credit score. A higher credit score generally results in better offers. Get a better score by eliminating existing debt and paying future bills in full and on time.
Increase your income. It’s not always easy, but any additional income will improve your financial position. Lenders look at your income to assess your ability to afford a mortgage.
Decrease your total debts. Pay down personal loans, student loans or other types of debts. Lenders consider your total debt load when determining the details of your loan.
Consider all your options. See if adjusting the loan type, the term length or the amortization period of your loan could help.
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Clay Jarvis