Broker floor: 3.85% · Bank average: 4.25% · Stress test qualifying rate: 5.85%. For good credit (680–749) borrowers doing a renewal in New Brunswick.
Paid report options after the free check: Rate Fairness Report CA$24 · Full Renewal Decision Report CA$49. No broker calls. No data sold.
Variable rate mortgages float with the Bank of Canada prime rate (currently 4.45%). The broker floor reflects prime minus 0.85%, adjusted for credit tier. The bank average reflects prime minus 0.45%. For good credit borrowers, an additional 25 basis points applies above the excellent-credit baseline.
The result for a 2-Year variable mortgage with good credit is a broker floor of 3.85% and a bank average of 4.25%. These are the two anchors used to evaluate any offer. On a $500,000 mortgage, the benchmark payment is approximately $2,641/month and this combination's rate produces approximately $2,590/month — $51 less than the 5-year fixed excellent-credit benchmark.
Rates are illustrative based on Bank of Canada benchmark data and do not constitute a lender quote. Verify current rates with your lender.
| Rate anchor | Rate | What it means |
|---|---|---|
| Broker floor | 3.85% | Lowest rate available through the broker channel for this profile |
| Bank average | 4.25% | Typical rate at major bank retail branches |
| Posted ceiling | 5.99% | Bank's starting-point rate before discounting — never pay this without negotiating |
| Stress test qualifying rate | 5.85% | Rate used to calculate maximum qualifying mortgage (contract rate + 2%, min 5.25%) |
New Brunswick charges a Land Transfer Tax on real estate purchases.
On a $280,000 NB property, LTT is $2,800. New Brunswick is one of the most affordable provinces for both real estate and closing costs.
Mortgages in New Brunswick are regulated by the Financial and Consumer Services Commission of New Brunswick (FCNB). New Brunswick borrowers qualify at the federal stress test rate. The province's affordable price points typically result in manageable qualifying income requirements.
| Value threshold | Tax rate |
|---|---|
| Above prior bracket | 1.0% of purchase price |
Good credit (680–749 credit score) qualifies you for most mainstream mortgage products at competitive rates. The rate premium over excellent credit is typically 25 basis points at this tier.
Good credit borrowers typically pay approximately 25 basis points (0.25%) above excellent credit borrowers. On a $500K mortgage, this is approximately $51/month or $612/year in estimated additional interest — based on current benchmark rates.
Improving your credit tier: Improving from good to excellent credit could reduce your rate by approximately 0.25%, saving an estimated $51/month on a $500K mortgage. Over a 5-year term, this represents approximately $3,060 in estimated savings.
To move from good to excellent credit: pay down revolving balances below 20% utilization, maintain all payments on time for 6–12 months, and avoid new credit inquiries in the 90 days before applying.
A 2-year fixed term provides a short lock-in with slightly lower renewal frequency than 1-year. Borrowers anticipating rate changes within 2 years but wanting more stability than a 1-year commitment often consider this option.
Typical borrower profile: 2-year fixed borrowers often include those in transition (considering relocation, planning a refinance, or expecting income changes) who want rate certainty without a long commitment.
Rate vs 5-year benchmark: 2-year fixed rates currently sit approximately +0.25% versus the 5-year fixed broker floor. The 2-year rate premium reflects the market's pricing of the shorter term relative to the benchmark 5-year.
Tradeoff vs 5-year fixed: A 2-year term means two or three renewals in a typical 10-year window versus two 5-year renewals. Each renewal provides flexibility — and rate uncertainty. If rates are expected to fall, the 2-year term captures the benefit faster.
A straight renewal with the same lender in New Brunswick does not require you to requalify at the stress test rate. You renew your existing balance at current rates without income re-verification, provided you are staying with the same lender.
Stress test: Straight renewals at the same lender are exempt from stress test re-qualification (since January 2023). If you switch lenders at renewal — even on maturity — you must requalify at 5.85% with the new lender. This limits switching for some borrowers, which is why comparing your renewal offer against the current benchmark before responding is important.
CMHC insurance: Your mortgage's insured or conventional status remains unchanged at renewal. If originally CMHC-insured, the insurance persists through renewal without new premiums. If you increase your mortgage balance at renewal, CMHC rules for refinances apply.
Special considerations: For New Brunswick renewals: start shopping 90–120 days before maturity. Your lender must provide a renewal offer at least 21 days before maturity. Compare the offer against the current benchmark before accepting — first offers are rarely the best available.
For a 2-Year variable mortgage at a contract rate of 3.85%, the federal stress test qualifying rate is 5.85% (the contract rate plus 2%, minimum 5.25%).
On a $500,000 mortgage at the qualifying rate of 5.85% over a 25-year amortization, the monthly payment would be approximately $3,155/month. Lenders apply a 32% Gross Debt Service (GDS) ratio to determine the qualifying income, meaning total housing costs — principal, interest, property tax, and heat — cannot exceed 32% of your gross income.
Stress test calculations are for illustrative purposes only. Your lender will apply the qualifying rate to your specific balance, amortization, and income documentation.
Based on current Bank of Canada benchmark data, 2-Year variable mortgage rates for good credit borrowers (680–749 credit score) in New Brunswick range from approximately 3.85% (broker floor) to 4.25% (bank average). The posted ceiling is 5.99%. These are illustrative rates based on BoC fallback data — actual rates vary by lender, insured status, and individual profile. Always verify with your lender.
Straight renewals at the same lender are exempt from stress test re-qualification (since January 2023). If you switch lenders at renewal — even on maturity — you must requalify at 5.85% with the new lender. This limits switching for some borrowers, which is why comparing your renewal offer against the current benchmark before responding is important.
With a 2-Year variable mortgage at 5.85% (stress test qualifying rate), a $500,000 mortgage on a 25-year amortization requires approximately $118,375 in gross annual income to qualify at a 32% GDS ratio. Good credit borrowers in New Brunswick should work with a broker to confirm their specific qualifying income.
A 2-year term means two or three renewals in a typical 10-year window versus two 5-year renewals. Each renewal provides flexibility — and rate uncertainty. If rates are expected to fall, the 2-year term captures the benefit faster.