Best 5-Year Variable Mortgage Rates In Nova Scotia

Unlike fixed rates that stay the same, variable mortgage rates change over time.

They are linked to a benchmark, usually the lender’s prime rate.

Here’s why they fluctuate:

• The Prime Rate: When the Bank of Canada adjusts its overnight lending rate, lenders typically adjust their prime rate for loans accordingly. The alteration in your lender’s prime rate changes your variable rate.
• The Economy: Economic factors like inflation and job growth influence interest rates, including variable ones.
• Lender’s Margin: Lenders add their margin to the prime rate, which is why variable rates can differ between lenders.

• Overall Economy: A healthy Nova Scotia economy (good jobs, growing businesses) often means more competitive mortgage rates.
• The Housing Market: When many people want to buy homes, lenders may offer lower rates to attract them.
• Bank of Canada: The Bank sets a key interest rate that affects the prime rate, which is tied to most variable mortgages.
• Local Competition: Banks, credit unions, and brokers compete for your business in Nova Scotia, which can lower rates.
• Government Programs: Provincial or local programs encouraging home buying can sometimes influence mortgage rates.
• Population Trends:  If Nova Scotia’s population grows, the demand for homes may increase, affecting rates.