A licensed mortgage broker in your area will contact you with more information, answer any questions you may have, and make sure you get the right mortgage for your unique needs.
You are on your way to saving thousands of dollars per year on your mortgage. Get the recognition you deserve for comparing the market and getting the best rate. Spread the word on MortgageRates.ca with your friends!
Canadians in the market for a new house often consider buying in New Brunswick. We are the best place for information on housing in this Atlantic Maritime province, as our extensive guide can help you discover the best places to live in the region. Moreover, we work with several lenders to help you access the best mortgage rates in the country. All you have to do is select a mortgage rate on this page, and we will send your information to a mortgage expert in your area that will compete for your business, thereby lowering your rates. Read on for more information about the New Brunswick housing market, then choose the best rate to save money on your mortgage.
Key Determiners of the New Brunswick Housing Market
Getting an accurate understanding of the New Brunswick housing market depends on knowing the main factors that determine housing demand and sales. These are the most significant influences on New Brunswick housing:
• Economy — As you would expect, the strength of New Brunswick’s economy is a major factor in the strength of its housing market. Presently, there are several signs that indicate the provincial economy will continue to be stagnant, at least for the next couple of years. Manufacturing is down because the strength of the Canadian dollar is impacting demand for provincial exports in other countries. The energy sector, which had been a driving force in New Brunswick’s economy over the last ten years, is not adding enough projects to keep up with the demand for jobs. Mining of natural resources such as potash should help the provincial economy over time, but new jobs will not be added until projects like the Sussex mine are well underway. Consequently, unemployment remains high, albeit not as high as the unemployment rate in other provinces. The rate is supposed to hover just under 10 percent, although unemployment in March 2012 reached 10.2 percent.
• Forestry — The forestry industry is part of the economy, but decline in this sector is worth mentioning as an influence on New Brunswick housing. A significant decrease in forestry products and imports is one of the most important reasons for the economy’s stagnation. The decline in this sector is temporarily offsetting any gains from potash mining and petroleum drilling and processing.
• Population Migration — Due to the economic difficulties in the province, population growth has slowed, with a large number of people migrating to other parts of Canada. A net population loss is not expected, but slower growth will impact the housing market. The market looks like it is becoming great for buyers, so you might want to wise to consider buying a home now at the lowest mortgage rates in New Brunswick.
The Current Housing Market in New Brunswick
As you might expect from the available data on the provincial economy and population, the state of housing in New Brunswick is somewhat mixed. On the one hand, MLS sales in April 2012 (625 units) were down from last year. However, April sales were higher than the preceding month by about 5 percent or so.
One of the reasons for the overall decreased level of sales is the fact that supply is greater than demand. There has been a greater than 10 percent increase in housing inventory since April 2011, which has driven the average housing price in the province down to $166,000 as of the first quarter of 2012. This is a 3 percent decline in housing prices since 2011. Fredericton, New Brunswick, is enjoying an average home sales price of about $196,000, which is significantly higher than the provincial average as of April 2012.
The elevated housing supply may have an impact on predicted housing starts, which are expected to reach 2,600 in 2012 and 2,700 in 2013. Construction prices have been increasing slowly, with costs remaining at or just below the provincial inflation rate. This helps make new housing more affordable, and that can make it a good idea to look at current mortgage rates. New Brunswick residents who buy now or in the next few months are likely to get a newly constructed home for far less than what they would have paid had they bought in the past few years. Total provincial housing starts are expected to decline through the end of 2012. Urban center housing starts only totaled 115 in April, a decline that sharply contrasts with the countrywide 29 percent increase in housing starts. Now may be the best time to get a new home, as the decline of starts should make finding a newly constructed home more difficult in the future.
Average mortgage interest rates should remain in the 3.5–5.5 percent range. This is good news for interested buyers, as it means housing will remain more affordable in the short term than it has been in years past. Bargains abound, so many experts recommend that New Brunswick residents give the housing market the benefit of a second glance.
Living in New Brunswick
• Fredericton, because it is the provincial capital and third-largest city in New Brunswick, is a great place for New Brunswick residents to buy a home. Public sector jobs, university employment, and a growing IT industry have meant that economic decline in the city has not been nearly as significant as it has been in the rest of the province. The city boasts the highest average residential home price, and since housing demand in the area is perpetually high, buyers are likely to see home values increase over time.
• Moncton and the greater Moncton area form one of the fastest growing municipal areas in all of Canada. Population growth is expected to continue in this important provincial hub, and its economy is among the healthiest in the province. Continued low unemployment and economic strength mean that it may be a good time to buy a home at the currently low mortgage rates in New Brunswick.
• St. John, the most populous city in New Brunswick, has recently seen a population increase after nearly three decades of decline. This bodes well for the future of the city and its economy, which is known for its strong energy sector, tourism, and more.
• Oromocto is a significant smaller town located near Fredericton. Canadian Forces Base Gagetown is the main driver of the economy, and the population has been steadily growing over the past twenty years. Many New Brunswick residents are happy to make their home in Oromocto.
Access the Best New Brunswick Mortgage Rates
Now that you have seen all that New Brunswick has to offer, it is time to find the best mortgage rate for your home purchase. Choose the a mortgage rate on this page or fill out the online mortgage application form to access the lowest mortgage rates in the province of New Brunswick.
[show-menu menu=23 menu_name=”Mortgage Rates By Province”]
At MortgageRates.ca, we believe that all Canadians deserve access to financial tools, education and product comparisons to make more informed financial decisions.
How do we make money? MortgageRates.ca receives compensation when our users connect with providers and/or are approved for products offered on our website.
We strive to offer our users a robust list of the best products available in the market to compare, including those offered by Canada’s leading financial brands. Sometimes you may find products listed on other sites that are not listed on MortgageRates.ca. We have a vetting process and only feature products offered by providers that can offer amazing rates and service to our user base.
The fields to the left of our product comparison tables allow users to input details on their personal financial situation. Once inputted, the tables dynamically update to feature products best suited to the user. Terms and conditions will apply. All mortgages have specific qualification criteria including debt servicing ratios, credit, property value and property details. MortgageRates.ca’s product recommendations are based on the limited information provided by the user.