Located in Northeast Canada, Newfoundland and Labrador is a province known for its rich natural resources and historical significance. It is also a great place to buy a home at the current Newfoundland mortgage rates, and we are the best place online to find a great deal on a mortgage. All you have to do is read up on the housing market in Newfoundland and Labrador, and then choose a mortgage rate to get started. We provide you the lowest mortgage rates by shopping the most competitive Canadian banks, brokers, and lenders. Read on to find out more.
Determiners of Newfoundland and Labrador’s Housing Market
In every Canadian province, the housing market is driven by realities that are unique to the province. These are the most important determiners of Newfoundland and Labrador’s housing market:
• Economy — In the short term, economists are expecting Newfoundland and Labrador’s economy to slow down a bit in 2012 before picking back up in 2013. GDP growth should be around 1 percent in 2012, but it is expected to reach 3.5 percent in 2013. Thus, its growth will be slower than the national average this year, but it will be a full 1.5 percent higher in 2013, for a total of 2.5 percent. Companies that specialize in the mining and processing of natural resources are driving this growth, although construction is expected to be an important factor as well. Unfortunately, this is not expected to transfer into a substantial change in the unemployment rate, which is expected to remain approximately 13 percent through the end of 2013. This could depress housing demand in the short run, and so you might benefit from buying a home in the long term if you take advantage of the best mortgage rates in Newfoundland that are currently available.
• Population Changes — Recently, Newfoundland and Labrador has been experiencing population growth, which is the first increase in the province since 1986. Population growth from 2006–2011 was nearly 2 percent, mainly due to fewer people leaving the province and a greater number of international immigrants. This growth will have lasting effects for decades to come, and it should eventually lead to increased housing demand.
Basic Housing Market Conditions in Newfoundland & Labrador
Overall, the housing market is in good shape in the province. Housing sales have remained steady from month to month in 2012, although April 2012 sales were below the record set in April 2011. Still, only three other Aprils on record have seen more homes sold in Newfoundland and Labrador than were sold in April 2012.
When houses are sold in Newfoundland and Labrador, however, they have gone for record prices. The average price for a home in the province according to MLS statistics was about $274,000 in April 2012. This represents an increase from the previous year of 13 percent, an increase that was far greater than the average national increase of 1 percent. As a result of this increase in home prices, the total value of the houses that were sold in the province was $80 million. It is uncertain whether this increase in pricing will continue. As of May 2012, supply levels were higher than normal, and there were about 7 months of inventory available for interested buyers.
Because of this increased supply, prices may level off, so now could be a great time to take advantage of current mortgage rates in Newfoundland and Labrador. The number of housing starts should contribute to increasing the existing inventory of homes even further. About 3,400 housing starts should occur in 2012, followed by 3,500 in 2013. Moderate growth in construction prices of around 2 percent is not likely to slow this increase very much. Most of the increase in housing starts will be in single-unit housing. Thus far in 2012, there have been about 400 housing starts recorded, but since the first 3 months of the year typically see the lowest number of housing starts, yearly housing start predictions should not change.
Current mortgage rates in the province are averaging anywhere between 3 and 6 percent depending on the mortgage and the credit history of the applicant. These are low rates historically, which suggests that housing is more affordable for many people now than in years past. If you use the mortgage rate chart on this page, you can find the lowest rates offered in the province.
Where to Live in Newfoundland and Labrador
If you have decided that Newfoundland and Labrador is the place for you, there are several communities in which you might want to buy a home. The following list represents some of your best options when you are purchasing real estate:
• St. John’s, the provincial capital, is the largest city in the province. Established as a British colony in 1583, St. John’s is home to about one-fifth of the population of Newfoundland and Labrador. The economy of the city has been growing exponentially in recent years, outpacing the economic growth of over 25 other cities in Canada. The city is ranked highly for starting small businesses, and these companies and giant corporations such as ExxonMobil Canada, Suncor Energy and others create jobs that attract people to the city. This fuels housing demand, suggesting that those who buy a home here at the lowest mortgage rates in Newfoundland are making a wise purchase.
• Conception Bay South is a town created from the conglomeration of several smaller communities. It is located fairly close to St. John’s, which means that many people live in Conception Bay South but commute to the provincial capital for work. If you want to have access to good jobs and yet not live in a huge city, this town is an excellent location in which to buy a home.
• Gander was originally founded as an air base in the early 20th century, and the town continues to house an airport that is important for international flights. Although the population is small (under 15,000 people), it has grown in the last 10 years, and those who move to the town can enjoy modern amenities and a relaxed lifestyle.
Get The Best Newfoundland Mortgage Rates
Having learned more about real estate in Newfoundland and Labrador, it is now time to figure out the best deal you can get on a mortgage. Choose a mortgage rate on this page or fill out the online mortgage application form for a rate quote from a lender in your area.
