Best Mortgage Rates in Nova Scotia
Compare fixed and variable mortgage rates from Nova Scotia’s best bank and alternative lenders.8Twelve has partnered with over 65 Canadian mortgage lenders to provide competitive rates on over 7,000 mortgage products. 8Twelve can quickly match you with a lender and mortgage type that meets your needs — even if your financial situation is unique.
Nova Scotia mortgage rate update: April 2025
Nova Scotia’s mortgage shoppers may have been disappointed on April 16, 2025, when the Bank of Canada decided to hold its overnight rate at 2.75%. The rate hold means variable mortgage rates will stay at their current levels — around 4% at some brokerages, though higher at Canada’s biggest banks — until at least June 4, when the Bank is scheduled to make its next rate decision.
Fortunately, fixed mortgage rates in Nova Scotia remain fairly approachable.
As of April 16, some brokerages were offering three-year fixed rates for around 4% and five-year fixed rates for about 3.75%. Those aren’t mind-blowingly low rates, but they might be as good as they’re going to get for the time being.
Government bond yields, which help determine lenders’ fixed mortgage rates, have been in the same general range since February. Without a significant, sustained dip in yields, lenders won’t have much reason to lower their fixed rates.
While rates may not improve in the coming weeks, home buyers have a few things working in their favour. Housing stock is piling up, which should take some pressure off of home prices, and Donald Trump’s tariff war may not be the extinction-level event many had feared.
If you have job security, it’s actually not a bad time to be looking for a home.
- Nova Scotia Housing Market Update - April 2025
2025 hasn’t exactly been a banner year for home sales in Nova Scotia, but its housing market is weathering the U.S. tariff war better than some other provinces. Home sales in March were up 4.5% year-over-year, while sales over the first three months of 2025 were 4.2% higher compared to the same period last year.
Most areas in the province saw year-over-year price gains in March. The average sale price in Halifax-Dartmouth, $601,250, increased by 6.5%, while the average price in the Cape Breton rose 31.2% to hit $308,000. The provincial average sale price, $477,054 was up 7.3% compared to March 2024.
Nova Scotia home sales and price forecast
Due to the tariff standoff, the Canadian Real Estate Association’s recently updated housing market forecast is essentially a list of downgraded expectations. CREA’s projections for home sales and prices in Nova Scotia have both declined, as the uncertainty around the Canadian economy makes buying a home in 2025 more challenging.
In January, CREA expected home sales in Nova Scotia to increase by 4.9% in 2025. They now predict sales to increase by a modest 2.2%.
CREA previously projected that the average sale price in Nova Scotia would climb by 5.3% this year. In April, that figure was slashed to 3.8%.
Read more about the Bank of Canada's latest rate announcement.
The BoC makes policy interest rate announcements eight times a year. Here's what you need to know.Historical trend: New mortgage loans in Nova Scotia
The average mortgage rate in Nova Scotia
There’s not much value in calculating the average mortgage rate in Nova Scotia since it would include every mortgage type and term length from every lender, including the above-average rates associated with open mortgages and private mortgages.
The only rates that matter are the ones attached to the mortgage you hope to be approved for. If you’re interested in a variable-rate mortgage, for example, compare variable mortgage rates. If you’re looking for more stability, compare fixed rates according to term length. Specific comparisons like these will give you more relevant information to work with.
Your mortgage rate will ultimately be determined by your finances, so it doesn’t really matter what other people are paying.
2025 Nova Scotia mortgage rate forecast
Variable mortgage rates
After the Bank of Canada’s fifth consecutive overnight rate cut on December 11, 2024, variable mortgage rates were down 1.75% since June. That’s a lot of action from a central bank with a conservative reputation.
The Bank likely won’t be as aggressive in 2025, as it has to wait for its most recent cuts to work their way through the economy. The overnight rate might decrease by another 50 basis points in the first half of 2025, which would bring variable mortgage rates down by another 0.5%.
Fixed mortgage rates
Because they’re determined by the government bond market, which is driven by investors’ decisions, fixed mortgage rates can be difficult to project over the long-term.
The mortgage brokers NerdWallet spoke to at the end of 2024 all expect fixed mortgage rates to remain relatively static for the next several months. That assumption, however, flies in the face of evidence from the government bond market. Bond yields, which determine fixed mortgage rates, cratered for three weeks straight starting on November 21. When yields fall consistently, it gives lenders the wiggle room to lower their fixed rates.
So, fixed rates could fall to begin the year, but lenders might keep them at current levels for a strategic reason: Lower fixed rates might entice home buyers away from the more expensive variable-rate mortgages they’ve been gobbling up to end 2024.
Crunch the numbers with our mortgage calculators
Nova Scotia first-time home buyer programs
There are two provincial programs available to help buyers cope with the challenges of buying a first home in Nova Scotia, including:
Down Payment Assistance Program. If you’re pre-qualified for an insured mortgage, you can apply for a loan worth up to $25,000 to put toward your down payment. The loan is interest free and must be repaid within 10 years.
First-Time Home Buyers Rebate. If you are buying a newly constructed home or condo, you may be eligible for a rebate worth 18.75% of the provincial portion of the HST you’re charged. The maximum rebate amount is $3,000.
Federal assistance programs include the Home Buyers’ Plan and the First Home Savings Account. These tools can be combined, so it might be worth investigating both to see how they fit your goals and finances.
Land transfer taxes in Nova Scotia
If you’re a Nova Scotia resident buying a home in the province, you’ll be charged a municipal deed transfer tax. The tax rate depends on the municipality where the property is located. As of January 2024, the rate ranged from 0.5% to 1.5% of a home’s purchase price.
Non-residents who purchase residential properties containing three units or less are charged a non-resident deed transfer tax worth 5% of either the home’s purchase price or assessed value, whichever is greater.
Guide to Nova Scotia mortgage rates
Types of lenders in Nova Scotia
Mortgage lenders in Nova Scotia tend to fall into four categories, which include:
Large chartered banks such as Scotiabank, RBC and TD.
Credit unions such as East Coast Credit Union and Sydney Credit Union.
B lenders that work with borrowers with lower credit scores, such as MCAN and Equitable Bank.
Private lenders, who typically deal with borrowers in need of short-term funding.
How Nova Scotia lenders determine mortgage rates
The mortgage rate you’re offered by a lender in Nova Scotia will be based on two primary factors; one based on the state of the economy and one based on your financial situation.
Economic factors
Variable mortgage rates are influenced by the Bank of Canada’s overnight rate. When the overnight rate increases or decreases, a lender’s prime rate follows suit. Variable mortgage rates are based on a lender’s prime rate, so as the prime rate rises or falls, so do variable rates.
Fixed mortgage rates are determined by activity in the government bond market, particularly the yields on one-, three- and five-year bonds. Fixed mortgage rates follow the movement of those yields.
Your financial situation
Factors specific to you also affect the rates you’re offered. These include:
Your credit score.
Your income.
Your total debts.
The loan type you choose.
The amount you’re borrowing.
The term length and amortization period of your loan.
Lenders look for signs of risk when assessing these aspects of your finances. The riskier they perceive you to be as a borrower, the higher the rate they’re likely to offer you.
How to qualify for a lower mortgage rate in Nova Scotia
Some of the mechanisms that shape rates are beyond your control, but there are steps you can take to convince lenders to offer you the best mortgage rates. For example, you can try:
Improving your credit score. A higher credit score generally results in better loan offers. Get a better score by eliminating existing debt and paying future bills in full and on time.
Increasing your income. It’s not always easy, but any additional income you can earn will improve your financial position. Lenders look at your income to assess your ability to afford a mortgage.
Decreasing your total debts. Lenders consider your total debt load when determining your mortgage rate. Pay down personal loans, student loans or other types of debts if you can.
Consider all your mortgage options. See if adjusting the loan type, the term length or the amortization period of your loan could result in you being offered a better rate.
Factors that affect mortgage affordability in Nova Scotia
A home’s price and the rate you’re offered aren’t the only factors that affect how much mortgage you can afford. You’ll also have to account for the following components, which play a role in all mortgages.
Debt service ratios
Lenders use debt service ratios to determine how much of your income goes toward paying debt. If those ratios are too high, you may not qualify for the mortgage amount you need.
Car loans, credit cards and lines of credit are all examples of debt that require regular payments. Decreasing some of these balances, or relying less heavily on credit, can help you lower your debt service ratios.
The mortgage stress test
You will have to pass the mortgage stress test if you want a home purchase funded by a federally regulated financial institution.
The rules of the stress test say you must qualify for a mortgage at a minimum qualifying rate of either 5.25% or the rate you’re offered plus 2%, whichever is higher. If a lender offers you a rate of 5%, for example, you’ll have to demonstrate you can afford the same mortgage at 7%.
You may be able to avoid the stress test if you apply for a mortgage with a lender that is not federally regulated, like a credit union.
Your down payment
Your down payment is a critically important factor in determining mortgage affordability. The more you can put down, the less you’ll need to borrow. Your monthly mortgage payment will likely be smaller, and you’ll pay less in interest.
Mortgage term
The term is the length of time your mortgage contract is valid. In Canada, mortgage terms can run anywhere from six months to as long as 10 years.
Chances are that your mortgage will have multiple terms during the amortization period until you pay it off in full. Once your mortgage term ends, you can pay your loan off in full, renew it or refinance it.
Amortization period
A mortgage’s amortization period is the time it will take to pay off the loan in full. In Canada, the most common amortization period is 25 years. If your down payment is less than 20%, you can’t have an amortization beyond 25 years.
If your down payment is greater than 20%, you may find some lenders willing to offer amortization periods of up to 35 years.
Why would you want a longer amortization period? The longer your mortgage lasts, the smaller your monthly payment will be. You’ll pay more in interest, but that might be a worthwhile trade-off if it helps you keep your home.
How to compare mortgages from Nova Scotia lenders
Use APR for greater accuracy
The annual percentage rate (APR) includes fees and closing costs the lender may charge in addition to the interest rate. A lender offering the lowest rate may actually have a higher APR due to those additional costs. Comparing APRs is the easiest way to see the complete cost of each offer.
Compare similar mortgages
For a comparison to be useful, the mortgages should have the same term, amortization period and payment frequency.
When looking for the best mortgage rates in Nova Scotia, also consider:
Ease of application.
Customer service.
Any other fees not included in the APR.
Frequently asked questions
What are the current mortgage rates in Nova Scotia?
What are the current mortgage rates in Nova Scotia?
As of April 2025, some lenders in Nova Scotia are offering five-year fixed mortgage rates for around 3.7%. Three-year fixed mortgage rates and five-year variable mortgage rates are closer to 4%.
Will Nova Scotia mortgage rates go down in 2025?
Will Nova Scotia mortgage rates go down in 2025?
Mortgage rates may decrease further in the first half of 2025. The Bank of Canada might reduce its overnight rate again in June, which would lower variable mortgage rates by 0.25% versus today’s levels. Fixed mortgage rates will likely continue hovering between 3.75% and 4.25% for much of the year.
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Clay Jarvis