Current Mortgage Rates in Newfoundland
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Editor's note: The Bank of Canada is scheduled to make its next overnight rate decision on Wednesday, January 28. Any adjustment to the overnight rate will directly impact variable mortgage rates, but the Bank is widely expected to announce a rate hold on Wednesday. NerdWallet will provide updates and expert commentary following the Bank's decision.
Newfoundland mortgage rates available at a broker
Bank mortgage rates available in Newfoundland
3-Year Fixed | 4.42% | 4.41% | 4.44% | 4.43% | 6.05% | 4.675% |
3-Year Variable | 7.78% (open) | 4.17% | -- | -- | 5.95% | -- |
5-Year Fixed | 4.51% (insured) 4.66% (uninsured) | 4.21% (insured) 4.56% (uninsured) | 4.43% (insured) 4.58% (uninsured) | 4.32% (insured) 4.62% (uninsured) | 6.09% | 4.811% (insured) 4.811% (uninsured) |
5-Year Variable | 4.17% | 4.27% | 4.49% | 3.68% (insured) 3.98% (uninsured) | 4.90% | 4.411% |
Rates in bold are discounted, annual percentage rates (APR), which include additional fees.
Newfoundland mortgage rate update: January 2026
It’s a new year, but for mortgage rates in Newfoundland, 2026 brings more of the same: static variable rates and fixed rates that threaten to edge higher.
Variable rates haven’t moved since the Bank of Canada held its overnight lending rate at 2.25% in December, and they won’t budge until the Bank delivers either a rate cut or rate increase. Neither is expected to happen for most of 2026, so variable rates might be as good as they’re going to get for months.
If the Bank maintains the overnight rate when it hands down its next rate decision on January 28, the lowest variable rates in Newfoundland should remain around 3.5% until at least mid-March.
Fixed mortgage rates face a much greater risk of increasing.
Government bond yields, which lenders use to price their fixed rates, hit a three-month high in December, receded over the holidays and then shot back up to begin the year. This kind of sustained upward pressure on yields gives lenders plenty of leeway to increase their fixed rates.
Fixed rates didn’t move much in December, so they’re not likely to spike in January. Fixed rates in Newfoundland should still be available for less than 4% at the end of the month.
2026 mortgage rate forecast
Variable rates
Variable mortgage rates aren’t expected to experience much change in 2026.
In December, the Bank of Canada said its overnight rate is at “about the right level” to fight inflation and support the economy, which should rule out any imminent rate cuts or increases.
So long as the Bank maintains its overnight rate, variable mortgage rates won’t budge. But if the Canadian economy falters, the Bank may be compelled to deliver a rate cut at some point.
Fixed rates
As of January 2026, it’s possible that fixed mortgage rates will increase in the short-term in response to elevated bond yields.
Long-term fixed-rate projections, however, are difficult to make with any accuracy. Bond yields, which lenders use to price their fixed rates, are determined by factors that are hard to predict, like the state of the economy and the expectations of individual investors.
Some institutions do their best, though. The British Columbia Real Estate Association, for example, expects fixed rates to remain at their current levels for most of 2026.
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?
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, fixed mortgage rates in Newfoundland are currently around 3.9% at mortgage brokers but well over 4% at major banks.
What’s a good mortgage rate in Newfoundland right now?
What’s a good mortgage rate in Newfoundland right now?
As of January 2026, the lowest fixed mortgage rates in Newfoundland are around 3.8%. The lowest variable rates are closer to 3.5%.
Are mortgage rates in Newfoundland different than in New Brunswick or PEI?
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?
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?
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?
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.
8Twelve has partnered with over 65 Canadian mortgage lenders to provide competitive rates on over 7,000 mortgage products. 8Twelve can quickly match you with a lender and mortgage type that meets your needs — even if your financial situation is unique.
Getting a mortgage in Newfoundland
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 |
Steps to getting a mortgage in Newfoundland
Getting a mortgage in Newfoundland isn’t any different than getting one in any other province. The real differences are often at the lender level, where you might encounter different mortgage rates and lending guidelines.
Getting a mortgage in Newfoundland generally involves the following steps:
Checking your credit score. If your credit score’s below 620, it might limit the lenders you’re able to borrow from. If it’s relatively low in general, this might be an opportunity to pay down some debt prior to applying for a mortgage.
Comparing mortgage rates. View rates from multiple sources — banks, credit unions and mortgage brokers — to help determine who you’d like to work with.
Getting pre-approved for a mortgage. Reach out to a lender and have them take a thorough look at your finances. Once this process is complete, you’ll have an accurate estimate of what you’ll be able to borrow and how much you’ll pay in interest charges.
Finding a home and putting in a successful offer. This isn’t something you can do safely without being pre-approved first.
Formally applying for a mortgage. Even though you’ve been pre-approved, your lender will need to give your finances a final evaluation before signing off on your loan.
Mistakes to avoid when getting a mortgage in Newfoundland
Choosing a mortgage based solely on rate. The lowest rate available might be attached to a mortgage with limited features. Discuss the details with your lender or mortgage broker.
Not comparing a variety of lenders. There are a lot of mortgage providers in Newfoundland. Make sure you’re comparing banks, brokers and credit unions so you don’t miss out on what might be the ideal mortgage for your needs.
Not negotiating. Mortgage rates are negotiable. Always ask a lender or broker what more they can do to decrease the rate you’re offered.
Borrowing too much. Borrowing the maximum amount allowed by your lender can help you buy more house, but it can mean less money for essentials, savings and investments.
Renewing a mortgage in Newfoundland
Renewing a mortgage in Newfoundland generally involves the same process you’ll encounter in the rest of Canada. But being in a less populous province might give you fewer lender options.
You should approach your mortgage renewal the same way you’d approach a home purchase: compare your mortgage rate options thoroughly so you can make an informed decision.
When renewing your mortgage in Newfoundland, keep the following in mind:
Your lender’s initial renewal rate offer won’t be their best. Be prepared to negotiate.
Consider using a mortgage broker, who can compare renewal rates from a wider range of lenders than a bank’s mortgage adviser.
Start the process early and give yourself time to find the product and lender that best suits your current financial situation.
Refinancing a mortgage in Newfoundland
Refinancing a mortgage in Newfoundland shouldn’t be any more difficult than it would be anywhere else. The rates you’ll encounter will be similar to those in other provinces, although refinance rates are generally higher than what lenders offer on home purchases.Prepare yourself for refinancing your mortgage by exploring our mortgage refinancing guide and by comparing current mortgage finance rates.
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 December. Home sales were down 2.1% versus November but were up a healthy 8.9% year-over-year.
Overall, home sales in Newfoundland in 2025 outdid 2024’s totals by 7.9%. That’s a difference of over 450 transactions.
A year of steady demand really put a dent in supply levels. At the end of December, there were 1,655 active listings still up for sale in Newfoundland. That’s 29.4% less than in December 2024, and the lowest December total in twenty years.
So it’s no surprise that prices continued climbing in December. Both the provincial benchmark price ($336,100) and St. John’s benchmark price ($396,000) edged up 0.7% from November.
Mortgage calculators to help you take the next step
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Clay Jarvis
Clay Jarvis