Find the Best Mortgage Rates in Nunavut

Your Guide to Getting the Best Mortgage Rates in Nunavut

Comparemortgages.ca is an excellent choice for getting the absolute best mortgage rates in Nunavut. You can always count on us to deliver the most suitable interest rates in Nunavut up front and to assist you in better understanding how to navigate mortgages in any market.

About Nunavut

Northern Canada’s Nunavut is a large, sparsely inhabited area comprising most of the Canadian Arctic Archipelago. Its islands have vast tundra plains, jagged mountains, and isolated settlements that can only be reached by boat or airplane. It is renowned for the sculptures, paintings, and garments manufactured by the region’s native Inuit people. The Nunatta Sunakkutaangit Museum in Iqaluit, the capital of Baffin Island, features a collection of Inuit artwork.

Key facts about Nunavut :

  • Nunavut is Canada’s largest and newest territory, established in 1999.
  • It covers over 2 million km², one-fifth of Canada’s total land area.
  • Nunavut has approximately 38,000 people and most speak Inuktitut as their first language. 
  • Nunavut has no highways; most transportation is done by plane, snowmobile or dogsled. 
  • The capital city of Nunavut is Iqaluit, and its official languages are English and Inuktitut. 
  • Nunavut has many national parks, including Auyuittuq National Park, Ukkusiksalik National Park and Quttinirpaaq National Park.  
  • Wildlife in Nunavut includes polar bears, narwhals, caribou, seals and walrus. 
  • Hunting and fishing are an important part of life in Nunavut for both traditional activities as well as nutrition purposes for families living there today

Compare Nunavut 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 Nunavut

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.

About the Nunavut Housing Market

The federal government stated in 2022 that it would invest $45 million in developing new, long-term, affordable homes for Nunavut. The money will be used to build new homes in Iqaluit’s Joamie Court and Tundra Ridge, as well as at Hall Beach, Kimmirut, Naujaat, Kugaaruk, and Pond Inlet. According to Canada Mortgage and Housing Corporation, the increased supply will predominantly serve Inuit, with 50% of the units designated for women and their children. Government funding for seven projects totals close to $75 million, including the roughly $30 million contribution from the Nunavut Housing Corporation.

First-Time Home Buyer Programs in Nunavut

Incentives and programs for first-time home purchasers are readily accessible to Nunavut residents. They were created particularly to lessen the financial burden of making such a substantial life-changing purchase. These programs will assist you in funding your down payment, which is sometimes one of the most significant obstacles in purchasing your first home. It also offsets some of the expenditures associated with the purchase. 

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 Nunavut 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.

Land transfer tax in Nunavut

Nunavut does not have a land transfer tax. However, the area levies registration fees based on the value of properties. Fees are $1.50 for every $1,000 of value, with a minimum cost of $60, for properties valued at less than $1 million. The cost for homes valued more than $1 million is $1,500 + $1 for every additional $1,000.

What Affects My Mortgage Rate in Nunavut?

Several factors, including income and credit score, must be met to qualify for the lowest interest rate in Nunavut. 

Down Payment

How much you make as a down payment determines whether you must also pay mortgage default insurance alongside your recurring payments on your Nunavut 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 (the maximum is 25 years on mortgages with less than a 20% down payment and 30 years on mortgages with down payments of 20% or higher), your individual mortgage payment will be lower because they’re spread out over a longer period of time. Longer amortizations can come equipped with higher interest rates. You’ll also pay more interest the longer you take to pay off your mortgage.

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 mortgage choice – 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, you should note that 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 in Nunavut anytime without facing a penalty. In the same vein, fixed-rate mortgages have steady payments but higher penalties for breaking your mortgage compared to variable-rate mortgages.

Your Credit Score

Borrowers with credit scores of 680 and above are regarded as the ideal candidate for a traditional mortgage lender. 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 Nunavut 

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

Why compare Nunavut mortgage rates on Compare Mortgages?

Comparing mortgage rates in Nunavut 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 Nunavut, 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 Nunavut mortgage rates higher than other provinces?

Nunavut 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 Nunavut. 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 Nunavut?

The choice of a variable rate, like the 5-year variable rate in Nunavut 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).

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.