Halifax-Dartmouth Mortgage Rates

Halifax, an Atlantic Ocean port in eastern Canada, is the provincial capital of Nova Scotia. A major business centre, it’s also known for its maritime history.

Shopping around is the process of looking for the best mortgage rate and comparing mortgage rates between lenders. The reason it is so important to shop around before getting a mortgage is because finding the lowest interest rate in Halifax can save you thousands of dollars in interest costs throughout the life of your mortgage term.

If you choose to look for the best mortgage rate yourself, this process will start with you researching mortgage lenders and mortgage rate offerings. From here, meeting with multiple lenders and negotiating to get the best mortgage rate with each lender you meet with will help you determine the best option out there. Finally, after all the meetings are done, choosing the lender with the best mortgage rate is the last step.

The process for finding a mortgage in Halifax with a mortgage broker is even simpler, where you meet with a broker who will negotiate with lenders on your behalf. After your broker finds you the best rates, you are able to choose between them.

Besides just helping you to find the best mortgage rate in Halifax, Mortgage brokers can also help find you a mortgage in complex situations. This may include finding you a self-employed mortgage with no income verification, finding you a mortgage for bad credit, or even finding you a mortgage as a newcomer to Canada with no credit history.

There are over 80 Halifax mortgage brokers that you will be able to turn to in order to help you find the best mortgage rate Halifax offers. Besides just Halifax, there are over 140 mortgage brokers in Nova Scotia, meaning that finding the best mortgage rate can be done easily across the province. Some of the largest mortgage brokers in Halifax are:

Over the last few decades, a variable rate mortgage may have saved you the most in interest costs as prime lending rates were on a downward trajectory between 1981 and 2020. But those who went for a variable rate mortgage between 2020 and 2022 faced an unpleasant surprise in the form of the fastest rate rise cycle in Canada’s history.

Looking forward, the Bank of Canada has cut its policy rate and is expected to continue lowering the BoC policy rate. Thus, the variable mortgage rate will decline significantly over the next 2 years. But fixed mortgage rates have already declined in anticipation lower rates in the future. So, based on the current situation, there might be little difference in total mortgage cost when choosing either a variable or fixed mortgage rate.

Your mortgage affordability is determined by your income level, down payment amount and mortgage interest rate. If you are unable to meet the minimum down payment requirement to purchase a home with mortgage insurance, you cannot afford that home with a traditional mortgage. Also, to pass the mortgage stress test, you should be able to comfortably pay your housing and your debt-related expenses even if your interest rate rises by 2%.

Since Halifax is located along the East Coast of Canada with it’s waterfront on the Atlantic Ocean, common risks can include flooding and hurricane damage. This means that getting home insurance in Halifax will be important to protecting what may be your biggest asset. Add-on coverages to consider include: sewer back-up coverage, windstorm coverage, and inland flooding protection. If you are getting a mortgage in Halifax or across Canada, you will require home insurance coverage as a condition in your mortgage contract. This is to protect the bank's collateral in the event of damage to the home or property.

The two major costs of building a home in Halifax will be for purchasing the land and for building the home on the land. Most land purchases will require a large down payment, potentially up to 50% of the purchase price from traditional lenders. If this is the case, another option may be to fund the land purchase with a loan from a private mortgage lender. Although the loan will have a very high interest rate, you will likely be able to repay the loan by getting a mortgage after construction is completed. The cost of land will depend on where the land is, if it is cleared out already, and the size of the plot.

For building the home on the land, you will likely be able to fund the building costs with a construction loan, which will be paid off at completion when you get a mortgage on the finished property. Construction costs for a single-family home with unfinished basement in Halifax average out to be ~$150 per square foot, meaning a 2000 Square Foot home would cost ~$300,000 to build. If you were building a custom home, it may cost more than double this amount.

When looking for a home in Halifax, the two main ways to find home listings will be through online websites, and through the help of a Halifax real estate agent.

Real estate agents: Your agent will provide you with listings that meet your search criteria, in order to help you find a property that is in your price range and meets your needs and wants.

Websites: The most common website will be the Halifax MLS, where you will be able to search for new listings of rentals and homes for sale. This will include listings from real estate agents, and some properties listed directly by their owners.

As of June 2024, the average home price in the Halifax- Dartmouth area is $594,758. This is a 63% increase over 4 years from ~$366,000 in June 2020. Halifax home prices continue to benefit from low inventory levels and migration to the city from other provinces and internationally. This has left Halifax with the highest housing prices in all of Atlantic Canada.

The city of Halifax is home to multiple post secondary schools, including:

• Dalhousie University
• Mount Saint Vincent University
• Saint Mary’s University
• University of King’s College
• The Atlantic School of Theology
• Nova Scotia Community College

With many post secondary schools, there is a large student population living and renting within Halifax, which may be something to consider if you are looking to purchase a rental property, or looking to live near the schools.