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Rates in Nova Scotia

Current Mortgage Rates in Nova Scotia

As of Friday, July 18, 2025, current interest rates in Nova Scotia 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 Nova Scotia 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 3.7% year-over-year to $698,000 in June 2025. 

Nova Scotia Mortgage Rate Trends: July 2025

While it’s difficult to predict where mortgage rates will trend, the consensus among experts suggests that we could see rates remain higher for longer. Forecasts suggest we won’t see interest rates 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 on June 4th was a policy interest rate hold, leaving it unchanged at 2.75%. This continues to put a pause on the BoC easing cycle, as uncertainty and unpredictability caused by fluctuating tariffs and ongoing trade negotiations erode consumer and business confidence.

The Governing Council decided to hold the rate due to high uncertainty around US tariffs, a softer Canadian economy, and unexpected recent inflation data until the impact of US trade policies is clearer. The BoC stated that its focus is on ensuring that Canadians continue to have confidence in price stability during this period of global upheaval, aiming to support growth while keeping inflation under control.

While inflation has eased, the growth in shelter costs, particularly rent and mortgage interest costs, is currently the most significant contributor to total inflation. The Governing Council continues to monitor core inflation numbers when assessing policy rate decisions to ensure sustained downward momentum in inflation.

The next announcement will be on July 30th. Using nesto’s proprietary overnight index swap and forward rate calculation data, bond markets are currently pricing a probability of a 25 basis point cut.

Real Estate Market Update

On July 15th, the Canadian Real Estate Association (CREA) released its June home sales data. The data showed that home sales rose 2.8% between May and June, building on the 3.5% gain from May. Recovery in sales activity is being led by the Greater Toronto Area (GTA), where transactions remain low but have rebounded a cumulative 17.3% since April. 

June’s home sales activity reported that new listings fell 2.9% month-over-month. Home prices have stopped falling and held steady, remaining relatively unchanged compared to last month. It appears the rebound in the housing market has been delayed by a few months, with market activity projected to resurface over the summer. However, new tariff threats may still influence the housing market in the coming months, keeping activity subdued.

CPI Inflation Update

Statistics Canada’s latest inflation data, released on July 15th, showed the Consumer Price Index (CPI) rose 1.9% year-over-year in April, up from the 1.7% increase in May. This was due to headline inflation growing at a faster pace, with gasoline prices falling 13.4% in June, compared to a 15.5% decline in May. Faster price growth for durable goods, including passenger vehicles and furniture, put upward pressure on CPI.

Mortgage Statistics for Nova Scotia

Home prices in Nova Scotia remain well below the national average. However, in the last 10 years, home prices in the province have doubled. Here are some mortgage statistics for the housing market in the province:

• Average home value in Nova Scotia (as of June 2025): $437,400 (CREA)
• Canadian homeownership rate (as of 2021): 66.5% (StatsCan)
• Number of home sales (as of June 2025): 1,221 (NSAR)
• Number of new listings (as of June 2025): 1,932 (NSAR)

Mortgage Options in Nova Scotia

Nova Scotia 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 limit on the purchase price of a home with an uninsured mortgage, allowing you to purchase properties valued at $1 million or more. With conventional mortgages, you can extend the amortization to 30 years with prime lending.    

Nova Scotia 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 payments. Borrowers with a high-ratio mortgage are limited to a maximum purchase price of less than $1 million and an amortization of 25 years. 

Nova Scotia fixed-rate mortgage: Fixed-rate mortgages lock in your interest rate for the term. This provides stable and predictable mortgage payments with set principal and interest portions 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. 

Nova Scotia variable-rate mortgage: Variable-rate mortgages have interest rates that fluctuate based on the Bank of Canada policy rate. Adjustable-rate mortgages (ARM) are variable mortgages that immediately adjust your mortgage payment to reflect your lenders’ prime rate when rates change. 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 Nova Scotia

The mortgage rates you are offered are priced based on the risks associated with the mortgage, the property used as collateral, and the borrower. The specific mortgage 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 (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 – Open mortgages have higher rates due to their flexibility compared to closed mortgages. Refinances have higher rates than renewals and new mortgages. 
• Your Credit Score – The type of lender that approves you for a mortgage will be determined based on your credit score. 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 that have higher rates to offset the lender’s risks. 

First-Time Home Buyer Programs in Nova Scotia

• Down Payment Assistance Program (DPAP) – offers an interest-free, repayable loan to eligible first-time buyers in Nova Scotia. To qualify, you must be buying your first home in Nova Scotia, have been a resident of the province for the past 12 months, plan to live in the home as your primary residence, have a maximum household income of $145,000, and maximum purchase prices apply based on the property location. 
• 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 Nova Scotia

Nova Scotia has a Provincial Deed Transfer Tax (PDTT) and a Municipal Deed Transfer Tax (MDTT), which are calculated based on the property’s purchase price. The provincial tax applies to non-residents only, and the municipal tax applies only to purchases in specific municipalities. 

The PDTT is calculated as PDTT = 5% x Total Ownership Interest being Transferred to Non-Residents x Purchase Price or the Assessed Value of Property (whichever is greater)

The MDTT is calculated based on the municipality and ranges from 0.5% to 1.5% of the property’s sale price. 

How to Find the Best Mortgage Rate in Nova Scotia

• 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.