Broker floor: 5.69% · Bank average: 5.94% · Stress test qualifying rate: 7.69%. For poor credit (below 620) borrowers doing a switch 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.
Fixed rate mortgages are priced from the Government of Canada 5-year bond yield (currently approximately 3.12%) plus a lender spread. The broker floor adds approximately 1.00% to the bond yield; the bank average adds approximately 1.35%. For poor credit borrowers, an additional 150 basis points applies above the excellent-credit baseline.
The result for a 3-Year fixed mortgage with poor credit is a broker floor of 5.69% and a bank average of 5.94%. 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 $3,107/month — $466 more 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 | 5.69% | Lowest rate available through the broker channel for this profile |
| Bank average | 5.94% | 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 | 7.69% | 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 |
Poor credit (below 620 credit score) severely restricts your mortgage options. Most prime lenders will not lend at this tier. B-lenders and private lenders are common alternatives, typically at substantially higher rates and with additional fees.
Poor credit borrowers typically pay approximately 150 basis points above excellent credit borrowers. On a $500K mortgage, this is approximately $467/month or $5,604/year in estimated additional cost — a very significant financial impact over a 5-year term.
Improving your credit tier: Improving from poor to excellent credit could reduce your rate by approximately 1.50%, saving an estimated $467/month on a $500K mortgage or $28,020 over 5 years. Working with a credit counselor to improve your credit before applying is strongly recommended.
To improve from poor credit: address all derogatory items (collections, delinquencies), make all current payments on time for 24+ months, reduce debt aggressively, and avoid new credit. Consider whether your situation warrants formal credit counseling or a debt management plan before applying for a mortgage.
A 3-year fixed term balances certainty with flexibility. Historically, 3-year rates have sometimes been at or near 5-year rates, occasionally below. It's a popular choice when the 3-year rate is within 10–15bps of the 5-year rate.
Typical borrower profile: 3-year fixed borrowers often include those who want medium-term certainty without a 5-year commitment, or those who purchased at higher prices and expect more equity within 3 years.
Rate vs 5-year benchmark: 3-year fixed rates currently sit approximately +1.65% versus the 5-year fixed broker floor. 3-year and 5-year rates are often close, depending on the yield curve.
Tradeoff vs 5-year fixed: A 3-year term completes before a 5-year term, providing an earlier window to access equity, switch lenders, or benefit from rate changes. The tradeoff is earlier exposure to renewal rates.
A mortgage switch in New Brunswick transfers your mortgage to a new lender at maturity without increasing the balance. Switches are popular because they allow rate shopping without the cost of a full refinance.
Stress test: Switching lenders at renewal — even at maturity — triggers stress test requalification at 7.69% with the new lender. If your income or credit profile has changed since origination, you may not qualify at the new lender even on the same balance. This is the primary barrier to switching.
CMHC insurance: CMHC insurance transfers when you switch lenders at maturity. If your mortgage was originally CMHC-insured, the insurance follows the mortgage to the new lender without new premiums — a significant advantage that makes CMHC-insured mortgages portable to new lenders.
Special considerations: For New Brunswick switches: lenders typically cover legal and appraisal costs for a switch at maturity. A mid-term switch requires breaking penalties and is effectively a refinance. Plan 90 days ahead and get pre-approval from the new lender before formally notifying your current lender.
For a 3-Year fixed mortgage at a contract rate of 5.69%, the federal stress test qualifying rate is 7.69% (the contract rate plus 2%, minimum 5.25%).
On a $500,000 mortgage at the qualifying rate of 7.69% over a 25-year amortization, the monthly payment would be approximately $3,718/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, 3-Year fixed mortgage rates for poor credit borrowers (below 620 credit score) in New Brunswick range from approximately 5.69% (broker floor) to 5.94% (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.
Switching lenders at renewal — even at maturity — triggers stress test requalification at 7.69% with the new lender. If your income or credit profile has changed since origination, you may not qualify at the new lender even on the same balance. This is the primary barrier to switching.
With a 3-Year fixed mortgage at 7.69% (stress test qualifying rate), a $500,000 mortgage on a 25-year amortization requires approximately $137,763 in gross annual income to qualify at a 32% GDS ratio. Poor credit borrowers in New Brunswick should work with a broker to confirm their specific qualifying income.
A 3-year term completes before a 5-year term, providing an earlier window to access equity, switch lenders, or benefit from rate changes. The tradeoff is earlier exposure to renewal rates.