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Check out today's best mortgage rates in Canada by type and term.
| Insured ? | 80% LTV ? The rates in this column apply to mortgage amounts between 65.01% and 80% of the property value. The home must be owner-occupied and have an amortization of 25 years or less. You must have purchased it for less than $1 million. These rates are not available on refinances. Refinances require "Uninsured" rates. | 65% LTV ? The rates in this column apply to mortgage amounts that are 65% of the property value or less. The home must be owner-occupied and have an amortization of 25 years or less. You must have purchased it for less than $1 million. These rates are not available on refinances. Refinances require "Uninsured" rates. | Uninsured ? | Bank Rate ? | ||
|---|---|---|---|---|---|---|
Insured 4.64% | 80% LTV 4.19% | 65% LTV 4.19% | Uninsured 4.99% | 4.99% | ||
Insured 3.99% | 80% LTV 3.89% | 65% LTV 3.89% | Uninsured 4.44% | 4.53% | ||
Insured 3.69% | 80% LTV 3.79% | 65% LTV 3.79% | Uninsured 3.9% | 4.39% | ||
Insured 3.84% | 80% LTV 3.99% | 65% LTV 3.99% | Uninsured 4.39% | 4.44% | ||
Insured 3.69% | 80% LTV 3.55% | 65% LTV 3.55% | Uninsured 3.69% | 4.19% | ||
Insured 4.19% | 80% LTV 4.24% | 65% LTV 4.24% | Uninsured 4.89% | 5% | ||
Insured 5.04% | 80% LTV 4.34% | 65% LTV 4.34% | Uninsured 5.24% | 6.09% | ||
Insured 3.9% | 80% LTV 3.95% | 65% LTV 3.9% | Uninsured 3.9% | 5.95% | ||
Insured 3.45% | 80% LTV 3.45% | 65% LTV 3.45% | Uninsured 3.5% | 4.24% | ||
Insured N/A | 80% LTV N/A | 65% LTV N/A | Uninsured N/A | N/A | ||
Insured 5.45% | 80% LTV 5.45% | 65% LTV 5.45% | Uninsured 5.5% | N/A |
There are three main drivers behind mortgage rates in Newfoundland and Labrador and Canada at large:
The Bank of Canada influences mortgage rates through its policy rate. The Bank’s objective is to keep inflation in the target range of 1% to 3% and preserve the value of the Canadian dollar. It achieves this by setting the target overnight rate, also known as the policy rate.
As of today, the policy rate is 2.25%. The central bank uses the target rate to influence how the banks set their own rates and acts as a barometer for the rate at which banks borrow and lend among themselves.
The higher the inflation, particularly if it’s above 3%, the higher the likelihood of a rate hike. Though inflation does not directly affect mortgage rates, the Bank tends to raise rates to cool down economic activity and force homebuyers to retreat from the market. It’s worth noting that government bond yields, which influence fixed rates, are affected by inflation as well, in addition to factors like oil prices, geopolitical tensions and broader economic conditions.
Banks, credit unions, monoline lenders and other financial institutions compete to attract borrowers, and during competitive market conditions, lenders may offer better rates. Shopping around and comparing multiple lenders can often result in a better mortgage rate.
To figure out if you represent a low-risk or high-ris borrower, the lender will weigh a few different factors, including:
1. Down payment
One of the first signs that you are most likely a low-risk borrower is if you are able to make a down payment of 20% or more on the purchase of your new home.
2. Debt service ratios
As a new homebuyer, your mortgage payment will probably become your biggest monthly debt. Meanwhile, you’ll still have other bills to pay every 30 days such as a car loan, school loan, utilities, etc. To qualify for the preferred mortgage rates from NL banks, lenders first need assurances that you’ll be able to comfortably meet all of these obligations each month. To gauge whether you can, lenders employ two formulas to compare your monthly income vs. your monthly expenses:
3. Credit score
Lenders like to look at your credit score because it’s a rating of how you have behaved previously as a borrower. The higher your credit score the less risk you represent as a borrower and the more likely you will qualify for a conventional mortgage. There’s no such thing as a bad credit mortgage in NL. If you have a bad credit score it’s very unlikely any lender will give you a mortgage.
To calculate your credit score, four areas of your personal credit management are reviewed. They are: whether you make payments on time on both installment payments (like a car loan) and revolving credit payments (credit cards); whether you are responsible with the credit limits available to you (i.e. using less than 20%-30%); whether you’ve maintained long-standing relationships with banks and lenders, and whether you’ve avoided opening too many new accounts.
4. Income
A lender’s greatest concern is how reliable a borrower will be at making their mortgage payment each month. Having a dependable income stream and stable job will go a long way towards alleviating that concern for any lender who is considering you for a mortgage.
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How do these mortgage types differ? Conventional (low-ratio) mortgage requires a down payment of 20% or more, with no mandatory insurance, while a high-ratio mortgage requires a down payment of below 20%, plus mandatory insurance.
Which mortgage type offers cheaper rates? As of August 2026, the average conventional 5-year fixed rate is 4.38%. That’s 5 bps above the average high-ratio 5-year fixed rate, which stands at 4.33%.
| Date | Average Conventional Rate | Average High Ratio Rate |
|---|---|---|
| 09/25 | 4.53% | 4.44% |
| 10/25 | 4.49% | 4.36% |
| 11/25 | 4.38% | 4.33% |
| 12/25 | 4.48% | 4.35% |
| 01/26 | 4.59% | 4.53% |
| 02/26 | 4.55% | 4.53% |
| 03/26 | 4.34% | 4.32% |
| 04/26 | 4.32% | 4.28% |
| 05/26 | 4.36% | 4.21% |
| 06/26 | 4.38% | 4.19% |
| 07/26 | 4.37% | 4.13% |
| 08/26 | 4.39% | 4.08% |
Last Updated: September 1, 2026
How do these mortgage rates differ? A fixed rate mortgage is a rate fixed over a period of time. Interest rates and the mortgage payments remain the same (and consistent) over that mortgage term. A variable rate mortgage is different. While the mortgage payment remains constant, the interest rate payments fluctuate with the prime interest rate.
Which rate is cheaper? As of August 2026, the 5-year fixed rate is 4.65%. That’s 21 bps above the 5-year variable rate, which stands at 4.44%.
| Month | Fixed | Variable |
|---|---|---|
| 09/25 | 4.62% | 4.69% |
| 10/25 | 4.64% | 4.55% |
| 11/25 | 4.65% | 4.44% |
| 12/25 | 4.67% | 4.44% |
| 01/26 | 4.73% | 4.47% |
| 02/26 | 4.67% | 4.44% |
| 03/26 | 4.44% | 4.40% |
| 04/26 | 4.40% | 4.06% |
| 05/26 | 4.34% | 3.90% |
| 06/26 | 4.34% | 3.85% |
| 07/26 | 4.27% | 3.83% |
| 08/26 | 4.26% | 3.81% |
Last Updated: September 1, 2026
New mortgage loan values have been trending upward throughout 2025, reaching the average of $253,074 in Newfoundland and $360,597 in Canada by the end of Q4 2025.
Here are all the average new mortgages loan values in Newfoundland from 2022 to 2025:
| Q1 – 2022 | Q2 – 2022 | Q3 – 2022 | Q4 – 2022 | Q1 – 2023 | Q2 – 2023 | Q3 – 2023 | Q4 – 2023 | Q1 – 2024 | Q2 – 2024 | Q3 – 2024 | Q4 – 2024 | Q1 – 2025 | Q2 – 2025 | Q3 – 2025 | Q4 – 2025 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Canada | $368,936 | $371,063 | $363,654 | $325,612 | $320,298 | $314,540 | $338,522 | $327,899 | $323,537 | $332,825 | $349,364 | $343,271 | $356,831 | $350,281 | $360,986 | $360,597 |
| Newfoundland | $215,953 | $220,614 | $232,851 | $216,426 | $214,277 | $201,389 | $221,308 | $219,016 | $213,174 | $217,904 | $238,301 | $233,743 | $232,485 | $233,746 | $248,614 | $253,074 |
Scheduled monthly payments have been trending downward throughout 2025, reaching the average of $1,483 in Newfoundland by the end of Q4 2025.
| Q1 – 2022 | Q2 – 2022 | Q3 – 2022 | Q4 – 2022 | Q1 – 2023 | Q2 – 2023 | Q3 – 2023 | Q4 – 2023 | Q1 – 2024 | Q2 – 2024 | Q3 – 2024 | Q4 – 2024 | Q1 – 2025 | Q2 – 2025 | Q3 – 2025 | Q4 – 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| $1,090 | $1,177 | $1,333 | $1,347 | $1,411 | $1,332 | $1,438 | $1,485 | $1,456 | $1,430 | $1,521 | $1,474 | $1,430 | $1,413 | $1,475 | $1,483 |
Closing costs are the one-time fees buyers pay upon purchasing property in Newfoundland. Generally, closing costs include:
Newfoundland charges a land transfer tax of $100, and additionally, 40 cents for every $100 of purchase price over $500, rounded down.
Mortgage term: The mortgage term is the amount of time that you commit to your mortgage rate, lender and the terms and conditions of the contract. At the end of the term, you’ll renew your contract with the mortgage company for the remaining principal at a new rate. The process repeats until you’ve paid off the mortgage on your Newfoundland and Labrador home. A mortgage term can vary in length, from six months to 10 years, with the most common term in Canada being five years.
Amortization period: The amortization period is the amount of time it will take you to pay off your entire mortgage. In Canada, the maximum amortization period is 35 years. But, if your down payment was less than 20% and you were required to purchase mortgage insurance from the Canadian Mortgage Housing Corporation (CMHC), then your maximum amortization period is 25 years.
The mortgage rate that you qualify for from a Newfoundland and Labrador bank will most likely vary depending on whether you get an open mortgage or a closed mortgage.
With an open mortgage, you have the option to pay it off whenever you want. If you have a closed mortgage and want to pay it off before your mortgage term is over, you will have a penalty to pay.
Are there any advantages to a closed mortgage? Are closed mortgage rates in NL available?
Yes, a closed mortgage generally offers a lower interest rate than an open mortgage. Meanwhile, open mortgage rates in NL are usually variable and a little higher.
This question is one of the most commonly asked. So, what’s the answer? A lot. Even getting your new mortgage at a rate that’s just a quarter percent less than what another lender is offering can make a huge difference. You could literally save thousands of dollars in interest over the lifetime of your mortgage.
But don’t stop there. There are a few other ways you can reap some savings on your new mortgage.
For example, make sure you get a mortgage that boasts prepayment privileges. Simply put this will allow you to put extra money on your mortgage. Where will that extra money come from? Well, in the future you may inherit money from a relative or you could get a bonus or raise from work. Being able to put extra money on your mortgage will reduce your principal and save you thousands of dollars in interest.
Even if you think you’ve found your dream house, someday you might move. Maybe because you require more space to accommodate your growing family. Or perhaps you get a job transfer that takes you to another province. Give yourself options for down the road by ensuring your new mortgage is portable. With a portable mortgage, you can take your mortgage with you and use it to finance your new home. This will save you money because you will avoid the charges that would come about if you had to close one mortgage and open a new one.
Still curious about what are the current mortgage rates in NL? Who has the best mortgage rates in NL? Comparison shop with LowestRates.ca.
LowestRates.ca works with banks and brokers to bring you competitive mortgage rates from lenders in Canada. All you have to do is answer a few questions, and in minutes you’ll be provided with today’s mortgage interest rates mortgage in NL. There’s no obligation, but you can choose to speak with our broker partner to secure your best rate and see if you're eligible for more savings.
Yes, it’s safe — you no longer need to visit a bank branch or mortgage broker’s office in person to apply for a mortgage. It’s becoming increasingly common for Canadians to apply for mortgages online. LowestRates.ca only works with reputable, trustworthy financial institutions. Your credit score won’t be affected and your information is secure. We don’t share your information with anyone unless you want to connect with a mortgage broker. We take care of the heavy lifting by comparing the market for you and can connect you with the best mortgage lenders in the country.
We have a strong selection of lenders on LowestRates.ca including the big banks and many independent providers and we’re adding more lenders all the time. This ensures we’re always delivering you a competitive rate. Even if you’re not ready to commit to anything, you can use our site as a starting point for research (it’s totally free, and you’re under no obligation).
The better informed you are, the more likely you'll negotiate a better deal for yourself. And, really, that’s what we care about the most.
Taras Trofimov
About the Author
Taras is the Content Manager for LowestRates.ca. He has produced thought leadership content for organizations like Constellation Software, Facebook and Yellow Pages as well as outlets like The Globe and Mail, Autoblog and MSN Autos.
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