Find the Best Mortgage Rates in the Northwest Territories

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Your Guide to Getting the Best Mortgage Rates in the Northwest Territories

At comparemortgages.ca, searching for the best mortgage rates in the Northwest Territories is easy. Our team of leading industry professionals offers unique insight into finding a solution tailored to your needs – no matter the market conditions. We ensure you receive the most competitive interest rate upfront so that you can have peace of mind knowing you have found the best mortgage deal available. Comparemortgages.ca allows you to save time and money searching for the perfect mortgage rate – let us simplify your process today!

About the Northwest Territories

The Northwest Territories, located in northern Canada, share borders with two other Canadian territories, Nunavut to the east and Yukon to the west as well as three provinces — Alberta and Saskatchewan to the south and British Columbia to the southwest.

The climate in the Northwest Territories is slightly warmer relative to that of Nunavut and mainly constitutes a boreal forest (taiga). However, around half the territory is located north of the tree line.

Key facts about the Northwest Territories:

  • The regional capital, Yellowknife, can be found on the north shore of Great Slave Lake 
  • The regions that comprise NWT include North Slave, Devcho, South Slave, Sahtu, and Inuvik 
  • The remote landscape is comprised of mountains, forests, and islands in the Canadian Arctic Archipelago as well as Arctic tundra 
  • The Nahanni National Park Reserve located has its center around the South Nahanni River canyons and Virginia Falls, which is about 90m high, nearly double the height of Niagara Falls 
  • Two of the most massive freshwater lakes (Great Bear and Great Slave Lake), as well as river systems (Mackenzie River) in North America, are located in the backyard of NWT
  • Wood Buffalo National Park, which is Canada’s largest national park, had Bison roaming free 

Compare Northwest Territories Mortgage Rates

Below is a table displaying the best rates from the five largest banks in the country. You can easily compare the rates offered by major Canadian lenders and  banks including TD Bank, RBC, CIBC, HSBC, and Scotiabank. We take care of the research to guarantee you the lowest possible rates upfront every time.

Compare Big Bank Rates in the Northwest Territories

It can be time-consuming and frustrating to compare rates by yourself. With us, you can find everything you need in one convenient location. Also, ensure that you consider the mortgage product term length and type when comparing rates. For instance, if you are in the market for a fixed-rate mortgage, it is essential to examine the a range of terms given by various banks, such as three-year and five-year offerings, and not just the interest rate.

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, your interest rate stays unchanged through the entire term of your mortgage (1 to 10 years). The most common choice Canadian homeowners make is the five-year fixed-rate mortgage. 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.  

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

For this option, despite variations in interest rate, the payment on your mortgage in Northwest Territories remains the same over time. 

If there is a reduction in interest rate, more payment goes towards paying off the principal. This implies that your mortgage is being paid off faster.

If there is an increase in interest rate, the principal sees less payment going in its direction, while a more significant portion goes towards interest payment.

Finally, if market interest rates rise to a specific percentage or trigger point, your lender may increase your payments. This increment ensures that you can still repay your mortgage at the end of the amortization period. Your mortgage contract would have the specific trigger point highlighted.

Adjustable payments with a variable interest rate

True to their name, adjustable payments have payment amounts changing as interest rate changes. A fixed portion of the payment goes to the principal. As interest rates see changes, the portion going to interest sees a similar change. This way, you can tell the portion of the principal you would have paid when the term of your mortgage ends.

What Affects My Mortgage Rate in the Northwest Territories?

When qualifying for low-interest rates in northwest territories, your income, down payment, amortization period,  and credit score can play a significant role. 

Down Payment

How much you make as a down payment determines whether you would also have to pay mortgage default insurance alongside your recurring mortgage payments on your northwest territories mortgage. If you make a down payment of less than 20% of the property’s value, you must pay mortgage default insurance.

Amortization Period

If you select a longer amortization period, your individual mortgage payment will be lower because it’s spread out over a longer period of time. Longer amortizations typically come equipped with higher interest rates. You’ll also pay more interest the longer you take to pay off your mortgage.

Property Usage

Purchasing a home, you intend to make your primary residence and live in is considered owner-occupied. If you were purchasing a property you intend to rent to another, or more appropriately, an investment property, you would be saddled with higher interest rates in northwest territories relative to your primary residence. This is because lenders rationalize that people would prioritize paying the northwest territories mortgage on their primary residence over a rental property. As a result, lenders tack on some additional risk for rental property rates.

Mortgage Type

Your mortgage choice would also impact your mortgage rate – such as open vs. closed or variable vs. fixed. The choice of either option is personal and usually dependent on several factors.

For instance, for open vs. closed mortgages, open mortgages feature higher mortgage rates in northwest territories due to the flexibility that borrowers would enjoy since they can choose to pay off their mortgage anytime without facing a penalty.

Your Credit Score

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

Learn About Rates & Mortgages in the Northwest Territories

In this section, we answer the most asked questions that our advisers receive daily from all over The Northwest Territories. 

What are today’s mortgage rates in the Northwest Territories?

The specific lender or bank offering each product determines their mortgage rates The Northwest Territories, and as a result, there would be some variation. Our state-of-the-art technology allows us to have a good overview of the market at any point in time and, thus, allows you to have the most current mortgage rates information at your disposal. 

Why compare the Northwest Territories mortgage rates on comparemortgages.ca?

Comparing The Northwest Territories mortgage rates on comparemortgages.ca allows you to get the latest information that would ensure you save significantly throughout your homeownership journey. 

Should I get an open or closed mortgage in the Northwest Territories?

Getting an open or closed mortgage in The Northwest Territories is a decision that your financial state and your life would generally determine. 

When examining open vs. closed mortgages, you should note that open mortgages have higher rates due to their flexibility. You can choose to pay off the mortgage at any point in time without dealing with a penalty.  

Should I find a mortgage with a rate hold in the Northwest Territories?

Suppose you have plans to buy a Northwest Territories property at some point. In that case, it could be an excellent call to have comparemortgages.ca help you secure a rate hold so that you have no worries about interest rates in The Northwest Territories potentially rising while you are still shopping for a house. 

Having a rate hold is like insuring your mortgage rates — for the next 90-120 days, you no longer have to bother about mortgage rates in the Northwest Territories increasing while you are home shopping. 

How comparemortgages.ca Works

Here at comparemortgages.ca we have one mission: make comparing and finding your low mortgage rate easy as can be. We do this by providing access to 20+ top banks, lenders, and brokers in Canada and pulling in the best rates in one shot for you. 

We also know that finding a low rate is just the start of your journey, so once we find that for you, we make the mortgage process seamless by putting you in contact with the best broker or lender to lower your monthly mortgage payment. . 

All that plus we give you the tools needed to negotiate the best rates you deserve to save big on your biggest financial purchase in life – your mortgage.