Nunavut Mortgage Rates
Nunavut mortgage rate update: January 2026
It’s a new year, but for mortgage rates in Nunavut, 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 Nunavut should remain around 3.9% until at least mid-March.
Fixed mortgage rates face a much greater risk of increasing in January.
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. Three-year fixed rates and five-year fixed rates in Nunavut should still be available for less than 4.4% 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.
Nunavut home buyer resources
Nunavut first-time home buyer programs
The Nunavut Downpayment Assistance Program provides forgivable loans to help finance 10% down payments for new Nunavut homeowners. If approved, the home buyer provides 2.5% of the home purchase price for the down payment, up to $400,000, while the program provides 7.5%. The amount provided by the program accrues interest, but no payments are due. If the homeowner still lives there and is not in default after 10 years, the loan is forgiven in full.
Federal assistance programs include the Home Buyers’ Plan and the First Home Savings Account. These tools can be combined, so it might be worth investigating both to see how they fit your goals and finances.
Land transfer taxes in Nunavut
Mortgage calculators to help you take the next step
Frequently asked questions
How do lenders determine mortgage rates?
How do lenders determine mortgage rates?
The mortgage rate you’re offered 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.
Will mortgage rates come down in 2026?
Will mortgage rates come down in 2026?
The Bank of Canada isn't expected to lower its overnight rate during 2026, which would result in variable mortgage rates remaining stable for most of the year. Fixed mortgage rates will likely continue hovering between 3.9% and 4.4% for much of the year.
How do you qualify for a lower mortgage rate in Nunavut?
How do you qualify for a lower mortgage rate in Nunavut?
While some factors that affect rates are beyond your control, there are things you can do to encourage lenders 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.
What's a good mortgage rate in Nunavut right now?
What's a good mortgage rate in Nunavut right now?
As of January 2026, the best rate you'll find in Nunavut will likely be a variable rate for around 3.9%.
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.
DIVE EVEN DEEPER
Clay Jarvis
Clay Jarvis