Current Mortgage Rates in Newfoundland
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Newfoundland mortgage rates available at a broker
Bank mortgage rates available in Newfoundland
3-Year Fixed | 4.67% | 4.66% | 4.59% | 4.63% | 5.95% | 4.624% |
3-Year Variable | 7.78% (open) | 4.07% | -- | -- | 5.95% | -- |
5-Year Fixed | 4.76% (insured) 4.86% (uninsured) | 4.51% (insured) 4.86% (uninsured) | 4.43% (insured) 4.68% (uninsured) | 4.62% (insured) 4.72% (uninsured) | 6.09% | 4.861% (insured) 4.861% (uninsured) |
5-Year Variable | 4.12% | 4.12% | 4.14% | 3.68% (insured) 3.98% (uninsured) | 4.90% | 4.261% |
Rates in bold are discounted, annual percentage rates (APR), which include additional fees.
Newfoundland mortgage rate update: May 2026
In May, the mortgage market in Newfoundland will be the tale of two rate types.
Variable mortgage rates should remain relatively affordable after the Bank of Canada held its overnight rate at 2.25% on April 29, 2026. Since the overnight rate directly affects variable rates, they’ll stay at their current levels until the Bank announces either a hike or cut.
The Bank’s next rate announcement is scheduled for June 10. A rate hike could be in store if inflation ramps up and seems lasting. That makes choosing a variable rate somewhat risky, but it would still take multiple rate hikes for variables to become as high as today’s best fixed rates.
Fixed mortgage rates are where the real uncertainty lies.
Government bond yields remain elevated due to the Iran war’s impact on oil prices and inflation. This matters because lenders use yields to price their fixed rates.
The war could shift from stalemate to active conflict at any minute. If hostilities further damage energy infrastructure or destabilize the global supply chain, yields could spike and take fixed rates with them.
All of this adds up to a queasy situation for home buyers in Newfoundland. In times like these, it’s imperative to speak to a mortgage professional (or two) to weigh all of your options.
2026 mortgage rate forecast
Variable rates
Variable mortgage rates weren't forecasted to move in 2026, but the war in Iran has changed the game.
By driving up oil prices and inflation expectations, the Bank of Canada has warned that higher rates may be needed to keep inflation near its 2% target.
If the Bank increases its overnight rate, variable mortgage rates will follow suit. That could happen as early as this summer.
If the Canadian economy falters, the Bank may be compelled to deliver a rate cut at some point. But it's hard to picture a rate cut coming just if inflation's about to spike.
Fixed rates
As of May 2026, fixed mortgage rates have already risen considerably due to rapid increases in government bond yields. (Lenders use bond yields to price their fixed rates.) Yields skyrocketed after the war in Iran caused oil prices to spike, raising fears of inflation and future Bank of Canada rate increases.
Predicting where fixed rates head in the coming months depends heavily on the war in Iran. If it wraps up without further damage being done to oil and food supplies, bond yields should recede and take fixed mortgage rates with them. If the war escalates and worsens the global financial outlook, yields and fixed rates could increase even further.
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.
How to get a lower mortgage rate in Newfoundland
While some factors that affect rates are beyond your control, there are things you can do to encourage Newfoundland’s lenders and brokers to offer you the best mortgage rates. For example, you can:
Improve your credit score. To start, pay down any outstanding debt and pay off every bill in full.
Increase your income. This isn’t always easy, but any additional income will improve your financial position.
Decrease your total 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.
Frequently asked questions
What’s today’s mortgage rate in Newfoundland?
There’s no single mortgage rate in Newfoundland. Rates differ based on the lender, rate type and term length. For example, variable mortgage rates in Newfoundland are currently around 3.4% at mortgage brokers but over 4% at many banks.
What’s a good mortgage rate in Newfoundland right now?
As of May 2026, you can find fixed mortgage rates in Newfoundland for around 4%. The lowest variable rates are closer to 3.4%.
Are mortgage rates in Newfoundland different than in New Brunswick or PEI?
National lenders and mortgage brokers tend to offer similar rates to home buyers in these provinces.
How are mortgage rates determined in Newfoundland?
Mortgage rates are influenced by economic factors, like the Bank of Canada’s overnight rate (variable rates) and government bond yields (fixed rates). The rate you’re ultimately offered will depend on your savings, income, debt and credit score.
What’s the minimum down payment for a house in Newfoundland?
Minimum down payment rules are the same in every province. To get a mortgage in Newfoundland, you’ll have to put at least 5% down on a home worth up to $500,000. If the home is worth between $500,000 and $1.5 million, you’ll need to put down 5% of the first $500,000 and 10% of the remaining amount. For homes worth more than $1.5 million, a 20% down payment is required.
How can I get a lower mortgage rate in Newfoundland?
Getting a lower mortgage rate generally means presenting yourself as a low-risk borrower to Newfoundland’s lenders and brokers. You can do this by making a larger down payment, lowering your debt service ratios and paying off other debts.
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Connect with Homewise to get a renewal rate quote that's personalized to you.Where to get a mortgage in Newfoundland
Even though Newfoundland has a shortage of large cities, there are still many places to get a mortgage. In addition to Canada’s biggest banks, you can also find mortgages at:
Credit unions.
Monoline lenders, which only provide mortgages.
Alternative lenders, which often service borrowers with lower credit scores.
Private lenders, which can range from individuals to large nationwide companies.
Here are some examples of different mortgage providers in Newfoundland.
Banks | Credit Unions |
|---|---|
RBC | Newfoundland & Labrador Credit Union |
CIBC | Atlantic Edge Credit Union |
Scotiabank | Public Service Credit Union |
BMO | Reddy Kilowatt Credit Union |
TD | Venture Credit Union |
Mortgage Brokerages | Direct Lenders |
East Coast Mortgage Brokers | First National Financial |
Dominion Lending Centres | MCAP |
Mortgage Architects | CMLS Financial |
TMG The Mortgage Group | nesto |
The Mortgage Centre | Home Trust Company |
Buying a home in Newfoundland
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.
Newfoundland housing market update
Like most provincial housing markets, Newfoundland’s took a step backward in April 2026. Home sales were down 7.4% from March and 11.9% year-over-year. Year-to-date, sales were 10.6% lower than in the first four months of last year.
The lack of sales is the result of the market having such a strong 2025, which eroded housing supply. At the end of April, there were only 1,934 homes left for sale across the province. 46.1% below the 10-year average for the month.
So it’s no surprise that home prices kept climbing. The overall benchmark price of a home in the province, $339,400, was almost 10% higher than in April 2025.
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Clay Jarvis
Clay Jarvis