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The Best Mortgage Rates in the Yukon

Compare customized mortgage rates from the Yukon's top lenders to find the best mortgage rate for your needs.

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Editor’s Note: On July 24, the Bank of Canada lowered its overnight rate to 4.50%, a decrease of 0.25 percentage points. The change will likely lead to some relief for homeowners with variable rates. NerdWallet will track any rate updates from lenders as more information becomes available. Learn more about the rate cut.

Nerdy Insight: The best Yukon mortgage rates have been stable in July. Three- and five-year fixed mortgage rates remain comfortably below 5%, but current activity in the government bond market could open the door to lower rates. Variable mortgage rates will remain around 6% until the Bank of Canada lowers its overnight rate. That could happen on July 24.

The best fixed and variable mortgage rates in the Yukon

Rates updated:

Showing 6 of 6 results

Term

Lender

Rate

Monthly Payment

 

5 Year Fixed Rate


Scotiabank

4.94%

$2,601.87

4 Year Fixed Rate


Scotiabank

4.99%

$2,614.66

3 Year Fixed Rate


Scotiabank

5.04%

$2,627.48

2 Year Fixed Rate


Scotiabank

5.89%

$2,849.77

1 Year Fixed Rate


Scotiabank

6.74%

$3,079.97

5 Year Variable Rate


Scotiabank

6.25%

$2,946.34

Disclaimer: The rates displayed do not include any taxes, fees, insurance, or other additional charges. These rates are estimates and are not guaranteed. The actual rate and loan terms you receive will depend on our partner’s assessment of your creditworthiness, loan amounts, and other relevant factors. Please note that any potential savings figures provided are estimates based on the information you and our advertising partners have provided. Terms and conditions apply.
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Yukon mortgage rate update: July 2024

Fixed mortgage rates are holding steady in the Yukon. As of July 12, 2024, five-year fixed mortgage rates remain below 4.7% at some lenders, while three-year fixed mortgage rates can still be found for around 4.9%.

Recent activity in the government bond market, where bond yields have been sinking, could open the door for lenders to improve their fixed rate offers later this month,

Variable mortgage rates remain well below 6% at many lenders after the Bank of Canada cut its overnight rate in June. If the Bank reduces the rate again on July 24, variable mortgage rates should follow suit the next day.

The average mortgage rate in the Yukon

There’s no single average for mortgage rates in the Yukon. Even if you had access to all the current mortgage rates being offered by lenders in the Yukon, it wouldn’t be much help when you’re mortgage shopping. That’s because the mortgage offer you receive is always specific to you and takes into account multiple factors like your credit score, the type of mortgage you want and the amount you need to borrow.

Think about the “average mortgage rate” the way you would average home prices in the Yukon. It’s interesting data to have, but it’s not necessarily relevant to your own home buying journey.

2024 Yukon mortgage rate forecast

Variable mortgage rates

Variable mortgage rates are expected to finally begin decreasing in the first half of 2024. When they decline, and by how much, depends on the Bank of Canada’s overnight rate.

When inflation is running hot, the Bank raises the overnight rate to increase borrowing costs and cool the economy. Whenever the overnight rate increases, variable mortgage rates rise to the same degree.

If inflation trends closer to the Bank’s target rate of 2% in the first few months of 2024, it may feel confident lowering the overnight rate as soon as June. When the overnight rate falls, variable mortgage rates will soon follow.

Fixed mortgage rates

Because they’re driven by lenders’ reactions to activity in the government bond market, fixed mortgage rates can be difficult to predict over the long-term.

Based on bond activity in the latter half of February 2024, for example, lenders could drop their three- and five-year fixed mortgage rates moderately in March, but there weren’t many bargains on offer at the time of this writing.

Fixed mortgage rates could be somewhat lower by the end of 2024, but it’s unlikely that they’ll fall significantly below 5%. 

Yukon housing market update: June 2024

The Yukon Bureau of Statistics releases quarterly reports on real estate trends. The most recent report covered October through December 2023. During those months, the average sale price of a single-detached house in Whitehorse was $627,400, a year-over-year decline of 1.9%. The average condo sale price in Whitehorse was $416,000, up 15.4% from a year ago.

Yukon first-time home buyer programs

Yukon residents who are unable to get traditional financing can apply for the Yukon Home Ownership Loan Program when buying or building a primary home. You must have a down payment of at least 2.5%. If approved, the program finances the loan, which you’ll repay at an interest rate equal to one percentage point below the prevailing average 5-year mortgage rate. Anyone — not just first-time buyers — may apply.

Yukon land transfer taxes

The land transfer fee in the Yukon has two parts: 

A flat fee. This fee is based on your home’s current value:

A variable fee. The variable fee, called the assurance fund fee, is based on any increase in the home’s value since it was last sold. You’ll pay $20 for the first $10,000 your home’s value has risen since it was last sold plus $10 for every additional $10,000 of increased value. 

Calculators to inform your home buying decisions

Guide to Yukon mortgage rates

Types of lenders in the Yukon

Mortgage lenders in the Yukon tend to fall into three categories, which include:

Types of mortgages in the Yukon

Fixed-rate mortgages

The interest rate stays the same for the duration of the mortgage term in a fixed-rate mortgage, even if the market fluctuates. Fixed rates typically:

Variable-rate mortgages

Variable mortgage rates increase or decrease whenever your lender’s prime rate increases or decreases. Variable-rate mortgages typically have rates that:

» MORE: Fixed-rate vs. variable-rate mortgages

Hybrid-rate mortgage

One portion of your mortgage is subject to a variable rate and the other portion is at a fixed rate of interest. These mortgages:

Insured and uninsured mortgages

If you make a down payment of less than 20% on a home costing under $1 million, you must insure your mortgage. Mortgage insurance adds to the cost of your loan. You pay a percentage of your mortgage amount, and the percentage depends on your down payment — the closer it is to 20%, the smaller your insurance payment is.

Homes worth $1 million or more require a down payment of at least 20%, so insurance is not required. 

Short-term and long-term mortgages

Short-term mortgages last five years or less. Long-term mortgages last over five years. With a shorter term, you’ll need to renew your Yukon mortgage sooner, which can provide flexibility. Short-term mortgages often have lower interest rates than long-term mortgage rates.

Closed and open mortgages

The main difference between closed and open mortgages is that you can pay off an open mortgage whenever you like and not pay a penalty; if you make additional payments on a closed mortgage, you’ll generally be penalized.

Closed mortgages often offer better rates than open mortgages. But open rate mortgages may be a good option if you think you may be able to pay off your mortgage early.

» MORE: Open vs. closed mortgages

How lenders in the Yukon determine mortgage rates

The mortgage rate you’re offered by a lender in the Yukon will be based on two primary factors; one based on the state of the economy and one based 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:

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.

How to qualify for a lower mortgage rate in the Yukon

Some of the mechanisms that shape rates are beyond your control, but there are steps you can take to convince lenders to offer you the best mortgage rates. For example, you can try:

Factors that affect mortgage affordability in the Yukon

A home’s price and the rate you’re offered aren’t the only factors that affect how much mortgage you can afford. You’ll also have to account for the following components, which play a role in all mortgages.

Debt service ratios

Lenders use debt service ratios to determine how much of your income goes toward paying debt. If those ratios are too high, you may not qualify for the mortgage amount you need.

Car loans, credit cards and lines of credit are all examples of debt that require regular payments. Decreasing some of these balances, or relying less heavily on credit, can help you lower your debt service ratios. 

The mortgage stress test

You will have to pass the mortgage stress test if you want a home purchase funded by a federally regulated financial institution.

The rules of the stress test say you must qualify for a mortgage at a minimum qualifying rate of either 5.25% or the rate you’re offered plus 2%, whichever is higher. If a lender offers you a rate of 5%, for example, you’ll have to demonstrate you can afford the same mortgage at 7%.

You may be able to avoid the stress test if you apply for a mortgage with a lender that is not federally regulated, like a credit union.

Your down payment

Your down payment is a critically important factor in determining mortgage affordability. The more you can put down, the less you’ll need to borrow. Your monthly mortgage payment will likely be smaller, and you’ll pay less in interest. 

Mortgage term

The term is the length of time your mortgage contract is valid. In Canada, mortgage terms can run anywhere from six months to as long as 10 years.

Chances are that your mortgage will have multiple terms during the amortization period until you pay it off in full. Once your mortgage term ends, you can pay your loan off in full, renew it or refinance it.

Amortization period

A mortgage’s amortization period is the time it will take to pay off the loan in full. In Canada, the most common amortization period is 25 years. If your down payment is less than 20%, you can’t have an amortization beyond 25 years. 

If your down payment is greater than 20%, you may find some lenders willing to offer amortization periods of up to 35 years.

Why would you want a longer amortization period? The longer your mortgage lasts, the smaller your monthly payment will be. You’ll pay more in interest, but that might be a worthwhile trade-off if it helps you keep your home.

How to compare mortgages from Yukon lenders

Use APR for greater accuracy

The annual percentage rate (APR) includes fees and closing costs the lender may charge in addition to the interest rate. A lender offering the lowest rate may actually have a higher APR due to those additional costs. Comparing APRs is the easiest way to see the complete cost of each offer.

Compare similar mortgages

For a comparison to be useful, the mortgages should have the same term, amortization period and payment frequency. 

When looking for the best mortgage rates in Saskatchewan, also consider:

You can also compare mortgage rates in other provinces to get a sense of how the rate you’ve been offered in the Yukon stacks up:

Working with a mortgage calculator can help you compare different mortgages in a single place.

There’s more to mortgage shopping than the interest rate

A low mortgage rate is usually a primary objective for buyers, but getting the lowest rate doesn’t necessarily mean you’re getting the best mortgage for your needs.

For example, you might opt for a fixed rate, which has a higher rate than a variable rate, if you’re uncomfortable with the risk of rates rising. Or, if you expect to come into a sizable sum of money soon (via an inheritance, for example), paying a higher rate for an open mortgage, which allows you to pay it off early without penalties, could be worth it.

Frequently asked questions for Yukon mortgage rates

What’s a good mortgage rate in the Yukon right now?

As of July 2024, some lenders in the Yukon were offering fixed mortgage rates below 5% and variable mortgage rates for around 6% for certain home purchases.

Will mortgage rates come down in 2024?

Variable mortgage rates will likely come down further in the latter half of 2024, possibly by as much as 75 basis points. Fixed mortgage rates aren’t set for any spectacular declines. They should continue hovering between 4% and 5% for the rest of the year.

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