Best Mortgage Rates in Newfoundland
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Newfoundland mortgage rate update: June 2025
Variable rates are holding steady.
The BoC could change rates on July 30.
Fixed rates have seen recent upticks.
On June 4, 2025, the Bank of Canada decided to hold its overnight rate at 2.75%. Maintaining the overnight rate means variable mortgage rates in Newfoundland will stay at their current levels until at least July 30, when the Bank is scheduled to make its next overnight rate decision.
The lowest variable rate offers remain around 4% at several mortgage brokerages, but are higher at the country’s largest banks.
A rate hold in June was expected, as April’s high inflation numbers made cutting rates a risky proposition. Analysts expect the Bank of Canada to cut its overnight rate at least twice more in 2025, which would shave at least 0.5% from variable mortgage rates.
Fixed mortgage rates have been a little more volatile, as lenders respond to activity in the government bond market.
Government bond yields rose for much of May, and were up in the first few days of June. When yields rise, fixed rates tend to follow suit.
Sure enough, three- and five-year fixed rates have been edging up in Newfoundland.
As of June 4, 2025, fixed-rate offers had climbed north of 4.1% at many mortgage brokerages. If bond yields continue to rise, 4.1% might look like a bargain in a few weeks.
What's a good mortgage rate in Newfoundland right now?
As of June 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. The rate offers you receive depend on factors like your credit score, total debt level and income, and will vary based on whether you apply for a mortgage at a bank or through a broker.
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 much of the 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
While housing demand tapered off in some provinces in April, the Newfoundland market’s strong start to 2025 continued. Home sales in April 2025 were up 7.4% year-over-year and 19.4% above the ten-year average for the month. Sales across the first four months of the year increased 15.7% compared to the same period in 2024.
Strong demand and declining inventory translated to significantly higher prices. The average sale price in the province, $326,741, was 7.2% higher than a year ago, while the benchmark price for single-family homes in St. John’s rose 9.6% to reach $385,300.
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