Find the Best Mortgage Rates in New Brunswick

Your Guide To Getting The Best Mortgage Rates In New Brunswick

If you want to get the best mortgage rates in New Brunswick, your one-stop shop is comparemortgages.ca You can depend on us to always provide you with the necessary guidance for any mortgage in all market conditions and supply the most favorable interest rate, upfront too.

About New Brunswick

New Brunswick is located in eastern Canada and is the largest of the four Atlantic and the three Maritime provinces. It is a bilingual province, with one-third of the population declaring themselves francophones and two-thirds anglophones. 

Key facts about New Brunswick:

• Serves as home to the warmest saltwater beaches north of Virginia 
• You would find the world’s largest lobster here. The sculpture stands at 11 meters in length and 5 meters in height and boasts an incredible weight of 90 tonnes (around 198,416 pounds)! The lobster is located in Shediac, which aptly bears the tag of “The Lobster Capital of The World.”
• McCain Foods Limited, famous for its frozen french fries, originates from Canada. The McCain brothers, who started the now multi-billion dollar company, created their first french fry plant in Florenceville, their hometown, in 1957. Presently, a third of the world’s volume of french fries have their origins in New Brunswick. 
• Between Deer Island and Indian Island, you would find the second-largest whirlpool in the world (the largest is the Maelstrom Whirlpool of Norway) and the largest in the Western Hemisphere. It is referred to as “Old Sow” as a result of the sound that it makes and can be viewed from Eastport, Maine.
• The University of Canada ties with the University of Georgia as the oldest North American University, and it is also the premier English-speaking university in Canada

Compare Mortgage Rates in New Brunswick

About the New Brunswick Housing Market

Housing demand is still significantly ahead of supply, and as a result, there is a good chance that the prevailing sellers’ market in St John and other significant parts of the province will not be letting up in 2022. Saint John home prices have climbed steadily – exceeding the national average significantly – and would likely keep rising due to rising demand and lack of inventory. Residential home prices, including condos, houses, and apartments, have risen by up to 36% between the final quarter of 2020 and 2021. The average home cost in 2021 rose to $260,000 from $190,700 in 2020.

First-Time Home Buyer Programs in New Brunswick

Several first-time home buyer incentives and programs in New Brunswick were designed specifically to help lighten the financial burden for first-time home buyers. These programs will offset some home-buying costs and help fund your down payment, which is often one of the biggest hurdles in buying your first home.

What are the Different Types of Mortgages?

Open vs Closed Mortgage

An open mortgage allows for prepaying any amount of your mortgage at any given time without a prepayment penalty. The trade-off for this flexibility that an open mortgage provides is the higher interest rate on your mortgage.

Conversely, a closed mortgage has a lower and more attractive interest rate because the flexibility allowed in an open mortgage is missing here. Instead, there is a cap on the extra mortgage payment that you can make per year. This implies that you can only pay a specific percentage of your current or original balance annually – usually an average of 15%; however, there may be variations depending on the lender. If you are allowed to choose, ensure that you go for the option of original balance prepayment because it allows you to make more payments annually. Given that you would receive a prepayment penalty if you exceed your annual payment limit, it is essential to note these limits and remain within them.

Fixed Mortgages

With a fixed rate mortgage like the 5-year fixed mortgage rate Calgary, your interest rate stays unchanged through the entire term of your mortgage (1 to 10 years).  Fixed-rate mortgages can be a good idea for conservative homebuyers working with a tight monthly budget or having their eyes set on a stable payment schedule. 

Variable interest rate mortgages

A variable interest rate sees fluctuations through the term, increases or decreases. If you opt for variable mortgage rates, you could end up with a lower rate than if you had opted for a fixed rate. 

There are two versions of variable interest rate mortgages:

1. Variable rates with adjustable payments 
2. Variable rates with fixed payments

Fixed payments with a variable interest rate

Under this option, the payment remains fixed over time despite variations in the interest rate. If the interest rate increases, more of your payment goes toward the interest and less toward the principal. If the interest rate decreases, more of your payment goes toward the principal. This means you pay off your mortgage faster.

Adjustable payments with a variable interest rate

Adjustable payments, true to their name, have payment amounts changing as interest rates in northwest territories change. A fixed portion of the payment goes to the principal. As interest rates change, the monthly payment goes up. 

Land transfer tax in New Brunswick

New Brunswick land transfer tax is evaluated based on either 1% of the property’s assessed value or 1% of the purchase price. The greater of the two values is chosen.

What Affects My Mortgage Rate in New Brunswick?

When trying to qualify for a low-interest rate in New Brunswick, your income and credit score can play a major role. The higher the risk involved in borrowing, the higher the interest rate could be.

Down Payment

Your down payment determines whether you will have to pay mortgage default insurance alongside your recurring mortgage payments. If you make a down payment of less than 20% of the property’s value, you must pay mortgage default insurance.

Amortization Period

Suppose you opt for an amortization period (mortgages with less than 20% down payment have a maximum period of 25 years, while mortgages with down payments of 20% or higher have a maximum period of 30 years). 

In that case, you pay a lower amount as a mortgage since it is spread out for a longer period. A more extended amortization period features higher interest rates as well. Generally, the longer you take while paying off your mortgage, the more interest you will have to pay.

Property Usage

A primary residence, or an owner-occupied home, is one that you plan on living in and qualifies for the most desirable mortgage rates due to the lender’s assumption that you will prioritize payments on this property over any other investments. On the other hand, if you are looking to buy as an investment and turn it into a rental property, interest rates may be higher on account of a greater perceived risk by lenders.

Mortgage Type

Your mortgage rate would also be impacted by your choice of mortgage – such as open vs. closed or variable vs. fixed. The choice of either option is personal and usually dependent on several factors. For instance, open mortgages would feature a higher rate than closed mortgages due to the flexibility that borrowers enjoy since they can choose to pay off their mortgage anytime without a penalty. Similarly, fixed-rate mortgages have steady payments but higher penalties for breaking your mortgage than variable-rate mortgages.

Your Credit Score

Borrowers with a credit score of 680 and above are regarded as the ideal candidate for a traditional mortgage lender. The higher above 700 the score is – with a maximum score of 900, the better the chances of getting the best rates.

Learn About Rates & Mortgages in New Brunswick 

We have compiled the most commonly asked of these questions for this section. These answers are intended to help guide your mortgage decisions whenever you get a new mortgage or refinance/renew a present mortgage.