Finally ready to buy that dream home you’ve always wanted and need the best mortgage rates in Nova Scotia? Loans Geeks is the best place to get the lowest mortgage rates possible in Nova Scotia! Loans Geeks is quick, easy and doesn’t cost you a dime; we just get you the best possible rate in the fastest possible time! We often get asked how to get a mortgage in Nova Scotia, and we hope this guide will help!
We checked the numbers on the thousands of inquiries on mortgage rates in Nova Scotia that we receive every year, and on average lenders who use Loans Geeks save 2.5% from the typical bank rates in Nova Scotia. 2.5% may not sound like a lot, but if your loan is for $400,000 that would save you over $100,000! Our goal at Loans Geeks is to find you the best mortgages in Nova Scotia and save you as much money as possible!
Mortgage Calculator for Nova Scotia
Perhaps the most important step you can take in this process is to budget, budget, budget! And, that is best done with a mortgage calculator for Nova Scotia. When jumping into a huge endeavour like buying a house, a lot of people only consider the cost of the mortgage alone, but there’s so much more to it than that!
Down payments, insurance, land transfer taxes, lawyers, real estate agents, inspections, appraisals and more! You may not need to pay for all of these, but it’s better to know the possibilities and be prepared. You don’t want to jump into the pool, only to discover there isn’t any water!
Make sure when you choose one, the mortgage calculator is for Nova Scotia, to make sure it’s accounting for your provinces taxes, rules and regulations. Mortgage rates for Nova Scotia differ from the other provinces and you’d hate to have done all this planning, only to discover it’s for Prince Edward Island instead!
Have you considered how much to pay upfront? It may seem ideal at first to only make a down payment of 5 – 10%; that is until you factor in the mortgage insurance you’d have to pay on all mortgages with a down payment of less than 20%. If you make that 20% down payment instead, it’s more money to part with upfront, but could save you thousands of dollars in the long run!
Nova Scotia has no provincial land transfer tax as it is determined municipally, so each city determines its own rate. For Halifax, the province’s biggest city, the tax is 1.5%. So, if the house you’re buying is for $500,000 then you have to pay an additional $7,500 in land transfer tax fees. That’s a significant amount of money, and when budgeting toward a home in Nova Scotia, could mean the difference in the price range you can afford.
Mortgages rates in Nova Scotia are at a pretty historical low for the last 70+ years, so now is a great time to buy, and a mortgage calculator will be a huge help! You need to consider every possible option, and that’s why a mortgage rate calculator designed for Nova Scotia is key for you!
Mortgage Brokers in Nova Scotia vs. The Banks
A lot of people tend to jump to the bank they’re already signed up with to get their mortgage, which does have its benefits, but it’s not always the ideal or best way get the best mortgage rates in Nova Scotia. With the bank, especially if it’s your own, there’s familiarity and comfortability, easy access to your banking history and more perceived legitimacy, responsibility and accountability held by the banks.
But, those same things aren’t exclusive to banks, and often times it is beneficial to go with a mortgage broker in Nova Scotia instead, as they give you more options, ease your process and do all they can to bring you the absolute cheapest mortgage rate in Nova Scotia. They work for you, and that value is tough to beat.
If you don’t know, a mortgage broker is a middle man between you and the mortgage lenders in Nova Scotia, be it a bank or a private lender. They work on your behalf to score you the best mortgage rates in Nova Scotia. What’s great about a good mortgage broker is that they have connections that you don’t and as such they have access to deals that a lot of people cannot get on their own. Your mortgage broker will work with you, and find solutions for any potential problems that you just cannot solve.
A CMHC survey, which can be found at: https://www.canadianmortgagetrends.com/2007/02/latest_mortgage/, in 2006 shows that about 27% of Canadians use mortgage brokers, while a CIMBL survey that same year has the number at about 31%. Surveys that year also showed that only about 43% of mortgage seekers looked for several different offers. That’s a lot of people who just settled for the first offer they got, rather than taking the time to look for the best rate possible to save as much money as they can. That’s money that you can put back into your home, whether it’s renovations, decorating or even making a bigger down payment on the mortgage.
When looking for the best rate you can find, it’s important to compare all mortgage rates for Nova Scotia to see what the best option really is. While mortgage rates in Nova Scotia are low across the board, it’s still important to actively look for the best deal you can find.
Private Mortgage Lender in Nova Scotia
Everyone’s situation is different and for some people getting their mortgage through the bank is their best or preferred option. But, not everyone can or wants to use the bank. Whether it’s jacked up rates or the dreaded “No”, sometimes it is better or necessary to choose between private mortgage lenders in Nova Scotia.
So, what exactly is a private mortgage lender and what are the pros? A private mortgage lender is a company or person that may specialize in loans of all kinds, and offer competitive (often better) rates than the bank and accepts a wider variety of credit rates. Private lenders in Nova Scotia are especially great for people with bad credit seeking a mortgage in Nova Scotia. They have to apply for licences and follow certain guidelines provided by the province(s) they operate within, but are usually more forgiving of bad credit and those who cannot get loans with the bank. Depending on your credit score, they may have rates below or above the average mortgage rates in Nova Scotia.
However, it’s not all perfect to use private mortgage lenders in Nova Scotia, there are some downsides and cons that come with going through a private lender instead of bank. One typical con is that their terms are often shorter than banks, and as such tend to have higher monthly payments making them tougher to pay back. Another con is while private lenders can have better rates for those with good credit, for those who don’t (but are still able to get approved) the interest rates can often be much higher, as extra insurance or a cost for having poor credit. These high risk mortgage lenders in Nova Scotia make you balance if the risk of their higher mortgage rates compared to the average in Nova Scotia, shorter loan times and higher potential to default on the loan are worth taking the plunge now, versus waiting until you’re more stable financially and have a better credit score.
Not everyone is in the same situation, so it’s important to have a read on where your credit standing is, the funds you have available to you and your financial security going forward. Private lenders can be great, or disastrous, it all depends on your particular situation. Research and preparation is key.
Fixed vs. Variable Mortgage Interest Rates in Nova Scotia
Another important decision when it comes to deciding on your mortgage is whether to go with a fixed rate or a variable rate. The first key in making that decision is knowing what each kind of rate is and the pros and cons associated with each.
Firstly, a fixed rate is the most commonly used one with about 66% of all mortgage rates in Nova Scotia being fixed rates. This means that whatever the rate for your monthly payments is at the beginning, it’ll remain constant throughout. The benefit for that is once it’s been decided, it never changes. You know what to expect every month and if an unexpected dramatic increase in the prime rate occurs, you won’t get stuck having to pay a newly exorbitant rate each month. It offers security, but that security can come at a premium cost as well. Fixed rates never give you the best possible mortgage rate in Nova Scotia at the time you sign it and you often will pay more over the lifetime of the agreement. So, finding the best 5 year fixed mortgage rates in Nova Scotia are crucial to maximizing your savings if you choose this option. A fixed rate is by far the most widely used for a reason, it’s the simplest to understand and the safest to use.
Next up is the variable mortgage rate. This is rate that can fluctuate from month to month, as your monthly payment relies on the prime rate at that time, and not a single rate agreed to at the time. You agree to a rate described as “Prime +/-“which could be Prime – 0.25%. This means that the best variable mortgage rates you can find in Nova Scotia would ones that are even less than the Nova Scotia Prime rate. Variable rates give you the best chance to find the best possible mortgage rates in Nova Scotia at the time you sign it. For a variable rate, the pros come in when the prime interest rate stays low, or even drops. Your rate at the start would typically be lower than on a fixed rate, so if it stays consistent, you’d have a lower rate, and if it drops then you’d pay even less. With the prime rate being pretty consistent over the last 10 years or so, now it would seemingly be a good bet and could save you a lot in the long run. However, the biggest con is in the lack of security from a spike in the prime rate. If something major happens to increase the prime mortgage rates in Nova Scotia rapidly (such as another crash of the housing market) it could be disastrous as it would leave you on the hook to pay way more than you could have possibly budgeted for. About 29% of mortgages are on variable rates, with the remaining 5% being some combination of the two.
The decision essentially comes to a risk vs. reward proposition and each borrower needs to assess what their situation is and whether the risk of a variable rate is worth the reward of great savings, or if it’s better to play it safe and stick of a single fixed rate.
Historical Nova Scotia Prime Rates
The Prime rate is the general consensus rate that banks will offer to their highest tier credit customers. Right now, the prime mortgage rate in Nova Scotia is as low as 1.25%, the lowest it’s been since 1935. From the 30’s through the 60’s the rate hovered around 5%, never going too high or too low, that was until the 1980’s when the market crashed and dramatically spiked up to nearly 25%! It’s been on a steady decline since, with short spikes about every 5 years or so, until it finally began to plateau in the 2010’s being the lowest it’s been in 70+ years. It’s been a long time since mortgage rates in Nova Scotia were low and consistent for this long and that’s great for current and prospective homeowners!
Nova Scotia’s Mortgage Rates Forecast
Now certainly seems the best time to buy a house, as mortgage rates in Nova Scotia are at a historical low point and will only go up. Nova Scotia mortgage rates forecast to rise 2-8% over the next several years meaning that mortgage rates in Nova Scotia are only going up. With new, tougher, mortgage rules being implemented, rates are expected to rise as the market looks to slow. If an opportunity presents itself, while mortgage rates in Nova Scotia are still such a historical low, now would be the perfect time to invest in a house.
Nova Scotia’s Housing Market
With mortgage rates being at such a low point across the country, a lot of housing markets have benefitted and Nova Scotia has been no exception. Not only have sales been up, but most homeowners have been receiving their asking price too. Being a more remote area of the country, the average price is significantly cheaper than in provinces like Ontario and BC, which gives the opportunity to get a lot more bang for your buck. With major cities like Toronto and Vancouver having an even greater housing crisis than normal, the government has been looking to find ways to cool off the markets for people looking to buy multiple homes in an effort to open up as much housing as possible. With that, new laws are being put in place in 2018 that are making it tougher to get a mortgage. This is having a direct result on mortgage rates, being a major cause of the expected increase over the next several years. In smaller housing markets like Nova Scotia, house prices are rising steadily, and are expected to continue to rise as supply starts thin with house sales increasing. So, if you’re looking for your one and only dream house in Nova Scotia, now may be the best time before mortgage rates in Nova Scotia being to jump up big time, if you’re in the market, now may be the cheapest rates you can get for a long time.
With all this information, we know you’re ready to start hunting down the best mortgage rates in Nova Scotia, and we at Loans Geeks are here to make that as easy as possible!