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It’s a great time to be shopping for a mortgage in Canada. Why? Because mortgage rates in Saint John — and across the country — are extremely low right now. So, what’s the average mortgage loan rates today in Saint John you ask? Well, you’ve come to the right place to find out.
Here at LowestRates.ca, we compare home mortgage rates today in Saint John from 75+ banks and brokers across the country, making it easier for homebuyers to zero in on who has the best offers and cheapest mortgage interest rates in Saint John, Canada today.
There are a wide variety of mortgage products out there but thanks to LowestRates.ca you only need one website (ours) to check them out and initiate the application process.
While investigating where to find today’s lowest mortgage interest rates in Saint John, you’ll discover that there are two basic types of mortgages: a conventional mortgage and a high-ratio mortgage.
A homebuyer qualifies for a conventional mortgage when they can put down 20% of the purchase price of the property. With this type of mortgage, the homebuyer does not have to purchase mortgage insurance from the Canada Mortgage and Housing Corporation (CMHC).
If the homeowner can only afford to put a payment down of less than 20%, then they will only qualify for a high ratio mortgage, which means they are required to purchase mortgage insurance from the CMHC.
To kickstart your investigation, we have put together a comparison of conventional and high ratio home mortgage rates currently being offered by mortgage companies in Saint John, New Brunswick, Canada.
|Date||Average Conventional Rate||Average High Ratio Rate|
Last Updated: September 1, 2021
Like anything, if you want to nail down a great mortgage loan rate for your new home in Saint John, you need to do your homework. A great rate isn’t going to fall into your lap, so invest the time and compare offers from a mix of brokers, banks and other mortgage companies.
When conducting your research be sure to compare what the current variable mortgage rates in Saint John are versus the best fixed mortgage rates in Saint John.
A simple way to initiate a comparison of house mortgage rates in Saint John is to let LowestRates.ca do the work for you. Actually, we’ve already done that.
We compared 5-year fixed mortgage rates to 5-year variable mortgage rates that current and prospective Saint John homeowners have applied for on our site. Here’s what we found: it doesn’t matter whether your preference is a fixed or variable rate. Either way, you’re going to end up with a very attractive loan deal because the 5-year fixed rates and 5-year variable home mortgage rates offered by your local Saint John bank and other lenders in town have pretty much been equal all year long.
Last Updated: September 1, 2021
When it comes to lending money, mortgage companies, banks, and lenders in Saint John act no differently than a person would — they don’t want to lend money to someone who is high-risk and will have trouble paying them back.
So before they agree to give you a mortgage, they need reassurance that you will pay back the loan. The lower the risk you represent as a homebuyer in Saint John, the more likely you will qualify for a mortgage loan and a great mortgage rate from the lender.
To determine your risk level, the best mortgage brokers, lenders and companies in Saint John will ask for some information so they can do some calculations to understand your current financial situation. Here’s what they’ll investigate:
Down payment: If you want to pay less interest on your mortgage, it’s imperative that you make a minimum down payment of 20% on the purchase of your home. That said, homebuyers who put less than 20% often qualify for the lowest rate. This is because their mortgages need to be insured by the Canada Mortgage and Housing Corporation (CMHC). Mortgage default insurance premiums are rolled into your monthly payments, which can increase the size of your monthly expenses. The down payment is just the first step. There are a few more things your mortgage lender will want to evaluate before they agree to provide financing.
Debt Service Ratios: When you buy your new home in Saint John, your mortgage payment won’t be the only payment you are obligated to make each month. Knowing that you’ll be able to make your mortgage payment (plus any other expenses you have) every 30 days provides a lot of peace of mind for brokers, banks and lenders. To calculate whether you can or can’t, they rely on two formulas to compare your monthly income vs. your monthly expenses:
Credit Score: Your credit score is like an endorsement or recommendation that confirms for mortgage companies that you are a borrower who can be relied on to:
Income: If you make a good, stable income it’s likely you’ll be able to consistently meet the payments of the various monthly bills you have along with the mortgage payment on your Saint John home.
Calculating the size of the mortgage on your Saint John property will depend on where you live, your down payment and your mortgage interest rate.
On a Saint John detached home worth $199,853, a buyer who can make a 20% down payment will have to borrow $159,882.40.
On the same home, a buyer who can make a 10% down payment will have to borrow $179,867.70.
Plus, keep in mind that if your down payment is less than 20% you will need to get mortgage loan insurance through the Canada Mortgage and Housing Corporation (CHMC). This will protect your lender if for some reason you are unable to make your mortgage payments and help you qualify for a low rate, but your premiums will be rolled into your monthly mortgage payments. There's a chance the extra cost of insurance may offset any discount you get on your mortgage rate.
With CMHC mortgage loan insurance you can qualify for a mortgage for up to 95% of the purchase price of your Saint John home.
In Saint John, the average sale price of homes sold in January 2021 was $199,853, up 7.9% from January 2020.
The cost to purchase your Saint John home will involve more than your new mortgage payment. To help you budget here is a list and brief description of the other costs associated with the purchase and closing of a new house.
Property valuation (appraisal) fee: What you purchased your new home for and what it’s actually worth to the bank can be two different amounts. To determine a true value for your new Saint John home and assure a bank or lender that its value would cover the cost of the mortgage if you were to default on your mortgage loan, you will need to have a property valuation or appraisal done. The approximate cost is $400 to $500.
Home inspection fee: There may be some things about your new home that need to be fixed or attended to that you can’t see. Hire a licensed home inspector and have them give your new Saint John house the once over. They’ll provide you with a report detailing anything they find, what they recommend you do about it and how much it will cost to repair. Expect to pay around $450 plus taxes for this inspection.
Title insurance: If you complete the purchase of your home and then discover later that there is a major problem it can be expensive. You can protect yourself by purchasing title insurance which guards you against any losses you might incur because of undetected or unknown defects to the property. Around $250. Buy it through your lawyer.
Mortgage default insurance: If the down payment on your Saint John home is less than 20% you will need to get mortgage loan insurance through the Canada Mortgage and Housing Corporation (CHMC).
Legal fees: The purchase of a home in Saint John is a legal transaction therefore you will require a real estate lawyer to assist you with the paperwork. The cost for these legal fees will range between $650 to $850.
Land transfer tax: This tax must be paid anytime a property is purchased by one person from another. In Saint John, the land transfer tax rate is 1%.
Home insurance: The average cost for home insurance in Saint John, New Brunswick is $68 a month or $816 a year. Homeowners insurance covers the cost to repair or rebuild your home after events like fire, smoke, theft, vandalism, a falling tree, or damage caused by weather such as lightning, wind, or hail. Most standard homeowners insurance policies also cover the replacement cost of furniture, clothing, and other possessions that you keep in your home.
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 Saint John 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.
An open mortgage gives you the flexibility to pay off the mortgage on your Saint John house at any time. With a closed mortgage, if you pay it off before the mortgage term ends, you will be charged a penalty.
So why choose a closed mortgage?
Because a closed mortgage generally offers a lower interest rate than an open mortgage. With an open mortgage, the rate is usually variable and a little higher.
Owning a home: Average cost in Saint John as of January 2021 was $199,853.
Renting a home: Average cost in Saint John as of February 2021.
Car insurance: The average cost of car insurance in Saint John is $867 per year, according to the Insurance Bureau of Canada. This is lower than the national average in Canada.
When it comes to having a mortgage there is one piece of advice that applies from coast to coast — when you score the cheapest interest rate on your mortgage you will save thousands of dollars in interest over the lifespan of your mortgage.
Want to know two more ways you can save on the mortgage for your Saint John home?
Make sure you get a mortgage that includes prepayment privileges. This will allow you to make additional payments on your mortgage principal whenever you have extra money (e.g. an inheritance, bonus from work, salary increase, etc.). Taking advantage of your prepayment privileges will allow you to knock down the amortization period of your mortgage which will, in turn, knock down the overall amount you pay towards interest.
The second savings opportunity a mortgage can give you is when it’s portable. Some day you may decide to move again. When that day comes, you can take your portable mortgage with you. This will save you having to pay charges that are associated with closing and opening a mortgage.
LowestRates.ca works with 75+ banks and brokers to bring you competitive mortgage rates from lenders in Canada and we’re always adding new ones. We work with our partners to obtain their best deals and offers, and then we let them compete for your business. All you have to do is answer a few questions, and in minutes you’ll be provided with today’s mortgage rates. 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.
This article has been updated from a previous version.*
When it comes to shopping for mortgages, most homebuyers in Canada tend to take a conservative approach.