Mortgages Nova Scotia

Mortage loans are now extremely easy and fast to acquire in Nova Scotia. First time home buyers or shoppers who need cash to purchase their next commercial or residential property are turning towards mortgage loans. Nowadays, mortage loans with alternative lending companies are the go-to solution for financing a home in Nova Scotia. Getting a mortage loan approved in Nova Scotia is easy. You do not need to wait in line anymore or fill out a bunch of unnecessary paperwork. Nowadays, all it requires you to do is to fill out an online application form. Afterwards, within just a few days, you can find your mortgage loan being sent to you. Here at Smarter Loans, we’ve done most of the ground work for you. We’ve compiled a list of trusted companies to receive mortgage loans from.

Take a look and explore your options. Usually we suggest you consider what products they are offering, interest rates, terms, qualifications, and customer reviews. Once you pick the best loan that fits your situation, hit the “Apply Now” button next to the company’s name. You will be redirected to their website where you will be requiried to fill out an online mortgage loan application form. An alternative at Smarter Loans is to pre-apply for the loan through us. We would match you up with the best lendor for your situation. After 24-48 hours, they would reach out to you to finish processing your request.

Frequently Asked Questions About Mortgages in Nova Scotia

Do I qualify for a mortgage in Nova Scotia?

The type and size of mortgage you want dictate what qualification criteria you must meet to get a mortgage on a Nova Scotian property. For residential mortgages, traditional lenders usually require: proof of employment, a minimum credit score (standard is 600), and a minimum down payment (usually 5%). Other lenders may have more forgiving eligibility requirements; for example, if you have a lower credit score, but have high income, then you still have options. The level of your income, size of mortgage you’re seeking, existing debt and other financial factors will all play a part in determining how much you can borrow.

Commercial mortgages have more complex requirements, relating to the financial position of the business. To qualify for a commercial mortgage, businesses must be able to show the business’s financial history, its assets and debts, proof of profitability, projected revenues, and a business plan; the business and its owners must all also pass a credit check, and down payment requirements are generally higher than with residential mortgages – starting at 20%.

What kind of property can I purchase in Nova Scotia?

Nova Scotia has beautiful property of all kinds, and residential mortgages allow you to purchase the home of your dreams with very few restrictions. You can use a residential mortgage to buy a single-family home, a vacation home, a new build, a townhouse, a condo, land, a multi-unit property, or even an investment property. You can even use a mortgage to finance renovations to your property. Commercial mortgages have slightly different uses; they can only be used for business-related property, such as office buildings, retail sites, warehouses, industrial buildings, and so on.

Where can I get a mortgage in Nova Scotia?

Despite Nova Scotia’s small size, its residents have plenty of options when it comes to both residential and commercial mortgages. The majority of Nova Scotians get their mortgage from a bank or credit union, but other options are available. Online lenders, mortgage companies, other financial providers and niche lenders all also service the province and can help you find the most affordable option for your particular circumstances. Banks and credit unions typically only work with “standard” borrowers who meet quite strict eligibility requirements, but alternative lenders can be more flexible. And if you’re one of Nova Scotia’s many small businesses, you may be eligible to get financing help from the government, through one of its small business commercial financing programs.

What’s the average interest rate on a mortgage in Nova Scotia?

Interest rates in Nova Scotia are a little higher than in larger provinces, as lenders do not have as many customers to compete over. However, the area’s low property prices can more than make up for this. The exact interest rate you qualify for will depend on your personal circumstances – your income, credit score, down payment, and so on – but the average is 3%, with a range from 2% to 5%. Those with excellent credit and high income will qualify for the lowest rates.

How much do I need for a down payment on a Nova Scotia mortgage?

Every lender has their own guidelines on down payments, but they all have to meet a minimum level set by the government. The government stipulates that a buyer must have a down payment that corresponds to the value of the property being purchased. For properties worth less than $500,000, at least a 5% down payment is needed. This number then scales up, to a minimum 20% down payment

for properties valued at over $1 million. The average house price in Nova Scotia is $265,500 (although this number is almost $75,000 higher in greater Halifax). So on average you would need a down payment of at least $13,275.

What are closing fees and how much are they?

Closing fees are all of the associated costs you must pay when buying a house. This includes home inspection fees, appraisal fees, title insurance, mortgage insurance, broker fees, legal fees, and possibly more. The combination of all these costs comes to 1% to 2.5% of the purchase price of the property. Although this may sound like a lot, it’s actually lower than most of Canada, where this number can go as high as 5%.

What taxes do I need to pay when purchasing property in Nova Scotia?

No one ever said buying a house was cheap! As well as the purchase price of the property, and fees associated with the purchase and mortgage, buyers also have to pay tax. The exact amount of tax depends on which municipality you’re buying in. Land Transfer Tax varies across the province, from 0.5% to 1.5% of the purchase price of the home. Harmonized Sales Tax (HST) is payable on all newly constructed homes; although this may initially seem high (15% of the purchase price), there are rebates available for houses worth less than $350,000, which can cut this bill by up to 60%.

I’m a first-time buyer. What extra help can I get to purchase in Nova Scotia?

Although Nova Scotia boasts low property prices, it can still be hard for first time buyers to get a foot on the property ladder. To encourage more home ownership, the Canadian government has several programs aimed at making the purchase of your first home a little easier. This includes tax incentives, such as HST rebates on new builds worth less than $350,000, and the Home Buyer’s Amount, which provides up to $5000 in tax credits. There’s also the First-Time Home Buyer Incentive, which allows eligible buyers to finance a portion of their purchase through the government. And the Home Buyer’s Plan allows you to withdraw up to $35,000 from an RRSP to assist with your purchase.

Can I get a mortgage for a vacation property in Nova Scotia?

Absolutely! Nova Scotia is home to many well-loved and well-used vacation properties, and many people use a mortgage to secure their foothold in paradise. As long as you meet the lender’s eligibility criteria, and are sure you can make your mortgage payments, you should have no trouble obtaining a mortgage for this purpose. Just be aware that property taxes and other taxes may vary for non-primary residences.

Elite Trusted Lenders

These companies are recognized for their excellent service, product offering and financial literacy education for all Canadians.