Compare The Best Mortgage Rates In Halifax

Your Guide To Getting The Best Mortgage Rates In Halifax is your one-stop shop for the cheapest mortgage rates in Halifax. You can always count on us to deliver the best mortgage rates Halifax up front and in less than one minute.

About Halifax

Halifax, the provincial capital of Nova Scotia, is a part of the Atlantic Ocean in eastern Canada.

It is a significant economic hub with a marine heritage spanning the coastline. The star-shaped Citadel, which sits on a hill and dominates the city, was built in the 1850s. Its Historic Properties, waterfront, and warehouses are a reminder of Halifax’s past as a centre for privateer trade, particularly during the War of 1812.

With a population of 412,674, Halifax is a significant economic hub in Atlantic Canada, home to many public and private sector businesses.

Compare Halifax 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 Halifax

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 range of terms given by various banks, such as three-year and five-year offerings, and not just the interest rate.

About the Halifax Housing Market

The house sellers’ market is projected to persist in Halifax and much of the province until 2022 as long as housing demand continues to outpace supply.

In 2021, Nova Scotia’s population crossed the 1 million mark, an important milestone for the Atlantic province. Despite the epidemic, immigration to Halifax and the majority of the province continued to grow, with newcomers coming from all over Canada and other nations of the world.

Halifax closing costs

Closing costs are related to a broad range of fees connected with completing your mortgage transaction, including all the legal and administrative costs you’ll be required to pay in advance or on your house’s closing day. Since these expenses often cannot be rolled into your mortgage payments, it is crucial to incorporate them into your budget for the house purchase.

Depending on the individual property you want to buy, closing fees vary, but as a conservative estimate, set aside 5% of the purchase price as a cushion to cover these charges. They usually range from three to five percent of the cost of the property, but it’s always advisable to err on the side of caution and set aside more money than you need. Any extra money can be saved for future maintenance bills or used to help furnish and decorate your new house. There is no such thing as excessive saving.  

Halifax first-time home buyer programs

Incentives and programs for first-time home buyers are available in Nova Scotia, and they were created mainly to help ease their financial burden. These programs will assist in funding your down payment, which is the most significant obstacle in purchasing your first home. It will also offset some of the expenditures associated with the purchase.  

Halifax Mortgage Brokers

Want to buy a house in Halifax? It’s essential to talk to an experienced real estate market expert in the city who can guide you through the mortgage rates in Halifax. Please feel free to fill out our online application; we will be pleased to assist you in locating the perfect mortgage for your home-buying endeavor.

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 dealing with 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 Edmonton 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 Halifax?

Factors including income and credit score are considered to qualify for the lowest interest rate in Halifax. The interest rate might be greater if the borrower poses more risk due to a low credit score or income.  

Down Payment

Borrowers are required to pay mortgage default insurance in addition to the normal mortgage payments, depending on the amount of their down payment. Anytime you put down less than 20% of the purchase price, mortgage default insurance is necessary.

Amortization Period

Your mortgage payments will be reduced if you choose a longer amortization term as they are spread out over a more extended period. Higher rates are usually associated with longer amortizations. The longer it takes you to pay off your mortgage, the more interest you’ll pay.

Property Usage

Purchasing a property that you plan to occupy is referred to as owner-occupied and is understood to be your primary dwelling. You will pay higher interest rates than on your house if you’re purchasing an investment property you plan to rent to others. People will often pay the mortgage on their principal property before any rental properties due to the rationale behind this. Lenders thus include more risk in rental property mortgage rates in Halifax.

Mortgage Type

Your choice of open vs. closed or variable vs. fixed rates would also impact your mortgage rate. 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 Halifax due to the flexibility that borrowers enjoy since they can choose to pay off their mortgage anytime without penalty. Similarly, your payments are fixed thanks to the certainty that fixed mortgages offer. Some people may opt for this even though variable mortgages like the 5-year variable rate are a better option in terms of cost-effectiveness.

Your Credit Score

A credit score of 680 or higher is required for approval by a standard mortgage provider. The maximum credit score is 900 and borrowers with scores over 700 as favored and will be eligible for the best mortgage rates in Halifax. For those with lesser scores, solutions are still accessible, but in these cases, you should anticipate higher rates and shorter durations. 

How to Apply for a Mortgage in Halifax 

You will be required to submit a variety of documentation when applying for a mortgage to demonstrate your job, income, down payment, and overall financial situation, including your assets and obligations.  

Meet with a mortgage expert.

A huge advantage over dealing directly with one bank or lender is having a mortgage specialist look out for your best interests as you navigate the numerous mortgage options that are currently available. 

Acquire all necessary documents.

Gathering as many documents as possible before speaking to your mortgage expert will help you get a quick preapproval or final approval. 

Required documents include:

  • Proof of Identity 
  • Employment Verification
  • Income Verification 
  • Proof of Assets
  • Confirmation of Down Payment
  • List of Debts/Liabilities
  • Purchase and Sale Agreement 
  • Real Estate Listing
  • Credit Report
  • Mortgage Insurance Information
  • Appraisal Report
  • Property Insurance 
  • Legal Representation 
  • Survey of Property

Apply for mortgage financing

Your mortgage specialist will be able to select the finest lender offering, including mortgage rates in Halifax that meet your unique needs once they have all the necessary paperwork in hand and then submit your application for approval.

Sign & finalize your mortgage.

To guarantee funding is in place when you take possession of your new home, you must review and sign the final mortgage documentation with your real estate attorney prior to your mortgage closing date.

Learn About Rates & Mortgages In Halifax

Our Frequently Asked Questions (FAQ) section is here to help you make educated decisions on the best mortgage rates in Halifax every time.

Why compare Halifax mortgage rates on Compare Mortgages?

Comparing mortgage rates in Halifax on Compare Mortgages guarantees that you get the most recent rate information, which can effectively help you save on your mortgage throughout your homeownership journey. 

When you are comparing mortgage rates in Halifax, ensure that you evaluate similar mortgage types (variable rate vs fixed rate) and terms (three or five years) so that you are not simply looking at rates; you are comparing similar products.

Mortgage rates and features see variations based on the specific lender, therefore, you would only get a clear comparison by evaluating similar offerings. 

Are Halifax mortgage rates higher than other cities?

Halifax mortgages today would see variations based on the lender or bank offering the product. With Compare Mortgages’ advanced technology, we get an accurate overview of the entire market at any point in time to guarantee that you always have access to the most current mortgage rates in Halifax. This way, you are able to make guided decisions about whether to leave your rate or lock it in. 

Should I get a fixed-rate or variable-rate mortgage in Halifax?

The choice of a variable rate, like the 5-year variable rate in Halifax or the fixed-rate mortgage hinges on how much risk you can tolerate and your level of comfort. 

If you have a preference for being able to know ahead how much mortgage payments you would be making monthly, then a fixed rate would be a good call given that payments remain the same. A fixed-rate remains the same through the term that you select (1-10 years).