Newfoundland Mortgage Rates
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Newfoundland mortgage rate update: October 2025
October should be a month of stability for mortgage rates in Newfoundland.
Variable mortgage rates will stay at their current levels until at least October 29, when the Bank of Canada is scheduled to announce its next overnight rate decision. A rate cut from the Bank will result in a similar decrease in variable rates. (After the Bank reduced the overnight rate from 2.75% to 2.5% on September 17, variable rates dipped by as much as 30 basis points at some lenders.)
Expect variable rates to hover around 4% for most of October, though some brokerages and direct lenders are offering variables for considerably less.
Fixed mortgage rates might also be static this month. Government bond yields, which fixed mortgage rates tend to follow, have somewhat flattened out after falling for much of September. If yields avoid any dramatic shifts, fixed rates will, too.
Fixed rates may not dip this month, but they’re still fairly approachable. Brokers are offering three- and five-year fixed rates for less than 3.9%, but they’re still well over 4% at Canada’s biggest banks.
What's a good mortgage rate in Newfoundland right now?
As of October 2025, a rate below 3.9% would be a good deal on a fixed-rate mortgage in Newfoundland. A rate of around 3.7% would be a win if you're getting a variable-rate mortgage.
2025 Newfoundland mortgage rate forecast
If the Bank of Canada lowers its overnight rate before the end of 2025, variable mortgage rates will also decrease. Fixed mortgage rates will likely continue hovering between 3.75% and 4.25% for much of the year.
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
The Newfoundland housing market’s terrific 2025 continued in August. Sales were up 6.3% versus August 2024 and 16.4% above the 10-year average for the month.
Interestingly, the sales increases were mostly seen outside of St. John’s. Sales were essentially flat in the provincial capital, while they rose 9.4% in the rest of the province.
The disparity could have something to do with prices. In August, the overall benchmark price in Newfoundland was $337,600. It was over $401,000 in St. John’s.
Neither figure has been stable, though. Home buyers in Newfoundland have had to contend with rapidly rising prices this year. The provincial benchmark price in August was 12.2% higher than a year ago, while St. John’s was up 13.2%.
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?
If the Bank of Canada lowers its overnight rate before the end of 2025, variable mortgage rates will also decrease. 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.
DIVE EVEN DEEPER
Clay Jarvis