Current Mortgage Rates in New Brunswick
Compare current fixed and variable mortgage rates from New Brunswick’s best bank and alternative lenders.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.
New Brunswick mortgage rate update: June 2025
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 New Brunswick will stay at their current levels until at least July 30, when the Bank is scheduled to make its next overnight rate decision.
Some mortgage brokerages are offering three-year variable rate offers for around 4%, but five-year variable rates are generally closer to 4.25%.
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 New Brunswick.
As of June 4, 2025, fixed-rate offers below 4.15% are increasingly rare — most are closer to 4.2%. If bond yields continue to rise, 4.2% might look like a bargain in a few weeks.
New Brunswick Housing Market Update - May 2025
Home sales in New Brunswick generally cooled in April 2025, which puts the province on the same track as many of the country’s housing markets.
Sales dipped by 1% year-over-year in Moncton but saw a more significant 9.2% decline in Fredericton. The only major population centre in New Brunswick to see a rise in sales was Saint John, where they improved by 0.6%.
Prices saw more pronounced upward movement. The average sale price in Fredericton, $381,354, rose 6.3% year-over-year, while Saint John's ($371,463) increased by 9.6%. The average price in Moncton, $370,679, was virtually unchanged from a year ago.
New Brunswick home sales and price forecast
In April, the Canadian Real Estate Association released its updated housing market forecast for 2025. One of the provinces to receive a significant downgrade in expectations is New Brunswick.
In January, CREA expected home sales in New Brunswick to increase by 4.1% this year. The group now projects sales to increase by only 0.4%.
CREA’s home price estimate has dipped by only 0.1% since January. The Association sees the average price in New Brunswick rising by 5.1% to just under $349,000 in 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.
Historical trend: New mortgage loans in New Brunswick
The average mortgage rate in New Brunswick
There’s not much value in calculating the average mortgage rate in New Brunswick. It would include every mortgage type and term length from every lender, including the above-average rates associated with open mortgages and private mortgages. Most of this info won’t be relevant to your borrowing situation.
The only rates that matter are the ones that might apply to the mortgage you hope to be approved for. If you’re interested in a variable-rate mortgage, for example, compare variable mortgage rates. If you’re looking for more stability, compare fixed rates according to term length. Specific comparisons like these will give you more relevant information to work with.
Your mortgage rate will ultimately be determined by your finances, so it doesn’t really matter what other people are paying.
2025 New Brunswick mortgage rate forecast
Variable mortgage rates
After the Bank of Canada’s fifth consecutive overnight rate cut on December 11, 2024, variable mortgage rates were down 1.75% since June. That’s a lot of action from a central bank with a conservative reputation.
The Bank likely won’t be as aggressive in 2025, as it has to wait for its most recent cuts to work their way through the economy. The overnight rate might decrease by another 50 basis points in the first half of 2025, which would bring variable mortgage rates down by another 0.5%.
Fixed mortgage rates
Because they’re determined by the government bond market, which is driven by investors’ decisions, fixed mortgage rates can be difficult to project over the long-term.
The mortgage brokers NerdWallet spoke to at the end of 2024 all expect fixed mortgage rates to remain relatively static for the next several months. That assumption, however, flies in the face of evidence from the government bond market. Bond yields, which determine fixed mortgage rates, cratered for three weeks straight starting on November 21. When yields fall consistently, it gives lenders the wiggle room to lower their fixed rates.
So, fixed rates could fall to begin the year, but lenders might keep them at current levels for a strategic reason: Lower fixed rates might entice home buyers away from the more expensive variable-rate mortgages they’ve been gobbling up to end 2024.
Crunch the numbers with our mortgage calculators
New Brunswick first-time home buyer programs
New Brunswick’s Homeownership Assistance Program (HAP), is intended for first-time home buyers earning a total household income of $40,000 or less. Those living in substandard housing units are also eligible.
The HAP offers loans of up to $75,000, which are meant to be combined with mortgage financing. No interest is charged on the HAP loan if the borrower’s income is less than $30,000; the interest rate increases by 0.5% for every $1,000 in adjusted income beyond $30,000. HAP loans are expected to be paid back within 25 years.
A similar program, the Off-Reserve Aboriginal Home Ownership Program, is available for Indigenous New Brunswick residents interested in buying or building their first home. To qualify, borrowers must earn a total household income of $55,000 or less, and have a shelter cost-to-income ratio no higher than 30%.
If you’re not eligible for these provincial programs, consider investigating federal initiatives such as the Home Buyers’ Plan or the First Home Savings Account. These tools can be combined, so it might be worth studying both to see which ones fit your goals and finances.
Land transfer taxes in New Brunswick
The current land transfer tax rate in New Brunswick is 1% of either a property’s agreed upon sale price or its assessed value, whichever is higher.
Guide to New Brunswick mortgage rates
Types of lenders in New Brunswick
Mortgage lenders in New Brunswick tend to fall into four categories, which include:
Large chartered banks such as Scotiabank, RBC and TD.
Credit unions such as OMISTA Credit Union and Brunswick Credit Union.
B lenders that work with borrowers with lower credit scores, such as MCAN and Equitable Bank.
Private lenders, who typically deal with borrowers in need of short-term funding.
How New Brunswick lenders determine current mortgage rates
The mortgage rate you’re offered by a lender in New Brunswick 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:
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.
How to qualify for a lower mortgage rate in New Brunswick
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:
Improving your credit score. A higher credit score generally results in better loan offers. Get a better score by eliminating existing debt and paying future bills in full and on time.
Increasing your income. It’s not always easy, but any additional income you can earn will improve your financial position. Lenders look at your income to assess your ability to afford a mortgage.
Decreasing your total debts. Lenders consider your total debt load when determining your mortgage rate. Pay down personal loans, student loans or other types of debts if you can.
Consider all your mortgage options. Adjusting the loan type, term length or the amortization period of your loan could result in a better rate offer.
Factors that affect mortgage affordability in New Brunswick
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 New Brunswick 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 New Brunswick, also consider:
Ease of application.
Customer service.
Any other fees not included in the APR.
Frequently asked questions
What are the current mortgage rates in New Brunswick?
What are the current mortgage rates in New Brunswick?
As of June 2025, mortgage brokers in New Brunswick are generally offering five-year fixed mortgage rates, three-year fixed mortgage rates and five-year variable mortgage rates for between 4.1% and 4.25.
Will mortgage rates go down in 2025?
Will mortgage rates go down in 2025?
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.
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Clay Jarvis