2025 Newfoundland Mortgage Rates Explained: What You Should Expect

Mortgage rates play a huge role in the Newfoundland housing market. Whether you’re buying your first home, refinancing, or considering an investment property, understanding what’s happening with rates in 2025 can help you make the right decision.

Current Mortgage Rates in Newfoundland & Labrador
As of mid-2025, three- and five-year fixed mortgage rates in Newfoundland are hovering around 3.9% to 4.0% at many lenders.

Why Mortgage Rates Matter
Mortgage rates directly affect how much house you can afford. A small change of even 0.5% can add hundreds of dollars to your monthly payment. For buyers, this means:

• Pre-approval is essential before house-hunting.
• Fixed vs. variable rates should be carefully considered.
• Locking in early can protect you if rates climb.

What’s Driving Rates in 2025?
Several factors are shaping rates this year:

• Bank of Canada Policies – Rate decisions directly impact lenders.
• Inflation & Economy – Economic stability keeps rates in check.
• Housing Demand – High demand for Newfoundland homes adds pressure to affordability.

Tips for Buyers in 2025

• Shop around: Different lenders may offer slightly different rates.
• Boost your credit score: Stronger credit can help secure lower rates.
• Explore first-time buyer programs: Newfoundland buyers may qualify for additional support.

Should You Buy Now or Wait?
Waiting for lower rates can be risky—if home prices continue to rise, affordability may not improve even with a small dip in rates. For many buyers, 2025 is still a good time to purchase, especially with the right financing strategy.

Thinking about buying a home in Newfoundland this year? Let’s review your options and connect you with trusted mortgage experts who can help you secure the best rate.

Megan Dawe, Realtor®
709-740-3869
megan.dawe@exprealty.com
www.megandawe1.expportal.com