First-Time Buyers

First-Time Home Buyer's Guide to Mortgages in New Brunswick 2026

Ryan Gurgis
January 8, 2026
8 min read
A quiet neighborhood in Bend Oregon with blue sky

New Brunswick offers one of the most accessible paths to homeownership in Atlantic Canada. With median home prices well below the national average and a growing economy attracting new residents, the province presents unique opportunities for first-time buyers ready to put down roots in Canada's picture book province.

Understanding New Brunswick's Housing Market

New Brunswick's real estate market has experienced steady growth in recent years, yet it remains remarkably affordable compared to major Canadian cities. The province's three major urban centers—Moncton, Saint John, and Fredericton—each offer distinct advantages for first-time buyers.

Moncton, the province's largest city, boasts a thriving bilingual culture and serves as the hub of the Maritime provinces. Average home prices in Moncton currently sit around $290,000, making it an attractive option for young professionals and families.

Saint John, Canada's oldest incorporated city, offers even more affordable options with average home prices around $250,000. The city's historic charm combined with waterfront living creates unique opportunities for first-time buyers seeking character homes.

Fredericton, the provincial capital, balances small-city charm with government stability and a strong education sector. Home prices average around $275,000, and the city's walkability makes it popular among millennials and first-time buyers.

Down Payment Requirements in New Brunswick

Like all of Canada, New Brunswick follows federal minimum down payment rules. These requirements are tied to your home's purchase price:

  • Homes under $500,000: Minimum 5% down payment required
  • Homes $500,000 - $999,999: 5% on first $500,000, plus 10% on remaining amount
  • Homes $1 million or more: Minimum 20% down payment required

For most New Brunswick first-time buyers, you're looking at homes well under $500,000, meaning a 5% down payment is your minimum requirement. On a $275,000 home in Fredericton, that's just $13,750—significantly lower than what you'd need in Toronto or Vancouver.

CMHC Mortgage Insurance

When you put down less than 20%, you'll need mortgage default insurance through CMHC, Sagen, or Canada Guaranty. While this adds to your costs, it actually enables you to become a homeowner sooner rather than waiting years to save 20%.

5% Down Payment

CMHC Premium: 4.00%

Example: $275,000 home = $10,450 insurance premium

10% Down Payment

CMHC Premium: 3.10%

Example: $275,000 home = $7,673 insurance premium

The insurance premium is typically added to your mortgage amount and paid over time, so you don't need to come up with this money upfront.

Provincial and Federal Programs for New Brunswick Buyers

First-time buyers in New Brunswick can access several programs designed to make homeownership more achievable:

First Home Savings Account (FHSA)

This federal program lets you contribute up to $8,000 annually (lifetime maximum $40,000) into a tax-free account specifically for your first home purchase. Contributions are tax-deductible, and withdrawals for a qualifying home purchase are tax-free.

Real Impact: If you save the maximum $8,000 annually for five years and your investments grow modestly, you could accumulate over $42,000 for your down payment—all tax-free.

Home Buyers' Plan (HBP)

Withdraw up to $60,000 from your RRSP ($120,000 for couples) to use toward your first home purchase. You have 15 years to repay the funds back into your RRSP without tax penalties.

New Brunswick Advantage: With lower home prices, you can often cover your entire down payment using the HBP, making homeownership accessible much sooner.

First-Time Home Buyer Incentive

This federal program offers 5-10% of the home's purchase price as a shared-equity mortgage with the Government of Canada. You must have a household income under $120,000 and purchase a home valued at no more than $500,000.

How it works: The government provides funds to reduce your mortgage amount and monthly payments. When you sell or after 25 years, you repay the same percentage of the home's fair market value.

Property Transfer Tax in New Brunswick

New Brunswick levies a property transfer tax (also known as deed transfer tax) on real estate transactions. The rate is 1% of the property's purchase price, which is relatively low compared to some provinces.

Property Transfer Tax Examples:

$200,000 home $2,000 transfer tax
$275,000 home $2,750 transfer tax
$350,000 home $3,500 transfer tax

First-Time Buyer Exemption

New Brunswick offers a partial rebate on property transfer tax for eligible first-time home buyers. Contact Service New Brunswick to determine your eligibility and rebate amount, as this can save you hundreds or even thousands on closing costs.

Choosing Your Mortgage Type

Understanding the different mortgage types available helps you make the right choice for your financial situation and risk tolerance.

Fixed-Rate Mortgage

Your interest rate stays the same for the entire term (typically 1-10 years). This provides payment predictability and protection from rate increases.

Best for:

  • First-time buyers who want budget certainty
  • Those expecting rates to rise
  • Buyers with tight monthly budgets

Current Range: 4.5% - 5.5% for 5-year terms

Variable-Rate Mortgage

Your rate fluctuates with the Bank of Canada's benchmark rate. You can often get a lower starting rate, but your payments may change over time.

Best for:

  • Buyers comfortable with rate fluctuations
  • Those expecting rates to decrease
  • People with financial flexibility

Current Range: 4.0% - 5.0% (Prime - 0.5% to Prime + 0.5%)

Understanding Closing Costs

Beyond your down payment, you'll need to budget for closing costs, which typically range from 1.5% to 4% of the purchase price. Here's what to expect:

Legal Fees

$1,000 - $2,000 for lawyer or notary services

Home Inspection

$400 - $700 for professional inspection

Property Appraisal

$300 - $500 (if required by lender)

Title Insurance

$200 - $400 (one-time premium)

Property Transfer Tax

1% of purchase price (may be partially rebated for first-time buyers)

Property Tax Adjustment

Prorated amount for the year

Moving Costs

$500 - $2,000+ depending on distance and volume

Total Closing Cost Example (New Brunswick)

On a $275,000 home purchase in New Brunswick:

Down Payment (5%) $13,750
Closing Costs (2.5%) $6,875
Total Cash Needed $20,625

Why New Brunswick Is Ideal for First-Time Buyers

Affordability

Home prices remain significantly lower than the national average, making it easier to save for a down payment and qualify for a mortgage.

Quality of Life

Shorter commutes, access to nature, and lower cost of living mean your money goes further in New Brunswick.

Growing Economy

Job opportunities in tech, healthcare, and education sectors are attracting young professionals to the province.

Bilingual Advantage

Canada's only officially bilingual province offers unique cultural experiences and career opportunities.

Getting Started on Your Home Buying Journey

Ready to take the first step? Here's what you should do:

1

Get Pre-Approved for a Mortgage

Understand exactly how much you can afford and show sellers you're a serious buyer. Pre-approval gives you 90-120 days of rate protection.

2

Save for Your Down Payment and Closing Costs

Use an FHSA, RRSP, or high-interest savings account to build your home fund. Set up automatic transfers to make saving effortless.

3

Work with a Local Realtor

Find an experienced agent who knows the New Brunswick market and can guide you through the buying process.

4

Stay Informed About Market Conditions

Follow local real estate trends, Bank of Canada rate announcements, and new government programs that could benefit first-time buyers.

Your Path to Homeownership Starts Today

New Brunswick offers an exceptional opportunity for first-time home buyers to achieve their homeownership dreams without the financial stress seen in larger Canadian cities. With strategic planning, the right mortgage product, and knowledge of available programs, you can make 2026 the year you buy your first home in Canada's picture book province.

RG

Ryan Gurgis

Mortgage Agent

Ryan brings a fresh perspective to the mortgage industry with a genuine passion for helping Canadians achieve their homeownership goals. His approach focuses on personalized service and making the mortgage process clear and straightforward for every client.

Ready to Start Your Home Buying Journey in New Brunswick?

Get pre-approved today and take the first step toward owning your dream home in Canada's picture book province.

Get Pre-Approved Now