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Rates in Northwest Territories

Current Mortgage Rates in Northwest Territories

As of Thursday, January 29, 2026, current interest rates in Northwest Territories are for a 5-year fixed mortgage and for a 3-year fixed mortgage. Shop around for mortgage rates to find the best offer.

High interest rates continue to make it challenging to qualify for a mortgage, making it harder for Northwest Territories residents to afford a home. While it’s almost impossible to predict when rates will come down meaningfully, experts forecast that we should expect a gradual reduction over the next few years. 

Home prices remain high, with CREA reporting that the national average home price decreased 4% year-over-year to $660,300 in December 2025. 

Northwest Territories Mortgage Rate Trends: January 2026

While it’s difficult to predict where mortgage rates will trend, the consensus among experts suggests that they could remain higher for longer. Forecasts suggest interest rates will not return to the neutral rate range of 2 to 3% until the end of 2025. 

Bank of Canada Rate Announcement

The Bank of Canada’s (BoC) latest announcement, made on January 28th, was a policy interest rate hold, keeping the rate at 2.25%.

The Governing Council decided to maintain the policy rate, citing a resilient economy. The Bank expects economic growth to be modest as population growth slows and the country adjusts to US protectionism. The Bank expects 1.1% growth in 2026 and 1.5% in 2027, with uncertainty around the upcoming review of the Canada-US-Mexico Agreement (CUSMA).

The next announcement will be on April 29. The bond futures markets are currently pricing in a 89% probability of a rate hold and a 11% probability of a 25 basis point cut.

Real Estate Market Update

On January 15th, the Canadian Real Estate Association (CREA) released its December home sales data, showing that activity edged lower. Home sales declined 2.7% month over month, with transactions down 1.9% in 2025 from 2024 levels.

December’s home sales activity saw new listings fall 2.0% month over month. As the Bank of Canada signalled that rates are as low as they are likely to get, activity is expected to pick up in 2026. However, uncertainty remains whether the spring market will finally return to more normal levels of housing activity.

CPI Inflation Update

The most recent inflation data show a 2.4% year-over-year rise in December, down from the 2.2% increase in November. This was due to the temporary break in the Goods and Services Tax (GST) and Harmonized Sales Tax (HST) that began on December 14th, 2024, resulting in monthly declines in exempt goods and services. This placed upward pressure on headline CPI growth. Moderating growth was the year-over-year decline in gasoline prices in December.

Mortgage Statistics for Northwest Territories

Home prices in the Northwest Territories remain below the national average and have dropped year-over-year. Here are some mortgage statistics for the housing market in the territory: 

• Average home value (as of December 2025): $334,800 (CREA)
• Canadian homeownership rate (as of 2021): 66.5% (StatsCan)

Mortgage Options in Northwest Territories

Northwest Territories conventional mortgage: Conventional or uninsured mortgages require a 20% or more downpayment. Mortgage default insurance is not required, as the equity from your downpayment is enough to protect the lender. There is no maximum limit on the purchase price, allowing you to purchase homes valued at $1 million or more. With uninsured mortgages, you can extend the amortization to 30 years with prime lending.    

Northwest Territories high-ratio mortgage: High-ratio or insured mortgages allow you to purchase a home with less than 20% as a downpayment. Mortgage default insurance is required to reduce the lender’s risk if you default on the mortgage. Borrowers are limited to a purchase price of less than $1 million and an amortization of 25 years with insured mortgages. 

Northwest Territories fixed-rate mortgage: Fixed-rate mortgages lock in your interest rate for the term. This provides stable and predictable mortgage payments with a set principal and interest amount paid throughout the term. Penalties on fixed-rate mortgages are calculated based on the higher of the interest rate differential (IRD) or 3 months’ interest. 

Northwest Territories variable-rate mortgage: Variable-rate mortgages have interest rates that fluctuate based on the Bank of Canada policy rate, which impacts lender prime rates. Adjustable-rate mortgages (ARM) are variable mortgages that immediately adjust your mortgage payment to reflect your lenders’ prime rate. The principal portion remains fixed, while the interest can increase or decrease based on changes to the prime rate. Variable-rate mortgages (VRM) are variable mortgages that have fixed mortgage payments despite changes to your lenders’ prime rate. The principal and interest proportions will adjust with more going to interest and less to principal if the prime rate increases or more going to principal and less to interest if the prime rate decreases. 

What Affects My Mortgage Rate in Northwest Territories

Mortgage rates are determined based on the risks associated with the mortgage, the property used as collateral, and the borrower. The specific interest rate you are offered will be based on various personal factors like your credit score, income, capital, downpayment, loan purpose, and loan-to-value (LTV) ratio. Some of the most important determining factors affecting your mortgage rate include:

• Downpayment – Your downpayment determines your LTV ratio and whether you will be required to purchase mortgage default insurance. Insured and insurable mortgages have better rates as there is lower risk to the lender. These rates apply to properties valued at less than $1 million with amortizations up to 25 years. 
• Amortization Period – With prime lending, the amortization period cannot exceed 30 years on uninsured mortgages with a downpayment of 20% or more. Uninsured mortgages typically have higher interest rates to account for the added risk to the lender. On mortgages with less than a 20% downpayment, the maximum allowable amortization is 25 years. 
• Property Usage – Your primary residence, known as owner-occupied, generally has lower interest rates. Investment properties you intend to rent will typically have higher interest rates. Purchasing a primary residence with a second separate legally registered suite is considered an owner-occupied rental and will have access to the same rates as a primary residence. 
• Mortgage Type – The type of mortgage will affect your mortgage rate. Open mortgages have higher rates due to their flexibility. Refinances have higher rates than renewals and new mortgages. 
• Your Credit Score – Your credit score will determine the type of lender that approves you for a mortgage. If you have good to excellent credit, you can typically use prime lending and benefit from the best rates. If you have poor credit, you may need to look at alternative lending solutions with higher rates to offset the lender’s risks. 

First-Time Home Buyer Programs in Northwest Territories

• Home Purchase Program – helps first-time buyers purchase a modest home through a forgivable loan to assist with the downpayment. Buyers receive either 5% of the home’s purchase price or the Maximum Construction Costs (MCC) whichever is less. 
• Homeownership Initiative – helps those living in detached public housing with Housing Northwest Territories become homeowners. This forgivable loan is available to anyone who meets the eligibility criteria and has lived in the unit for 3 years prior to applying. 
• First-Time Homebuyers Tax Credit (HBTC) – a federal government program that allows first-time buyers to claim up to $10,000 for a maximum $1,500 tax credit to help offset closing costs. 

Land Transfer Tax in Northwest Territories

The Northwest Territories has a Land Titles Fee that is calculated in 2 parts. The first is based on the property value, and the second is based on the mortgage amount. 

The mortgage amount is charged at $1.50 per $1,000 of mortgage balance, with a $80 minimum fee. 

How to Find the Best Mortgage Rate in Northwest Territories

• Step 1: Understand your credit score:  Before looking for a mortgage lender or applying for a mortgage, check your credit score regularly. This will help you immediately report and remedy errors that could negatively affect your score. If necessary, improve your credit score to help with your mortgage approval.
• Step 2: Determine your borrowing capacity: To find the right mortgage solution, you’ll need to know how much house you can afford based on your income and downpayment. 
• Step 3: Know your mortgage needs: Analyze different mortgage solutions’ features, risks, and costs. Careful research and comparisons of the available options can help you choose a mortgage that best meets your immediate and long-term financial needs.
• Step 4: Find a suitable mortgage strategy: Get expert guidance to choose the best strategy for your homeownership goals. Your mortgage strategy shouldn’t just be based on the lowest rate.
• Step 5: Compare rates and terms: Not all mortgages are equal. Choosing a lender like nesto for your mortgage can help you compare rates and terms for multiple lending solutions, ensuring you find the best fit. 
• Step 6: Get prequalified for a mortgage: Begin your journey towards homeownership by taking advantage of nesto’s prequalification process. By analyzing your downpayment and financial stability, nesto will provide you with a comprehensive prequalification outlining the maximum mortgage amount you can qualify for. This information is crucial as it helps you set realistic expectations and narrow your search for a suitable home within your budget.