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Evaluate all of British Columbia's best mortgage rates in one place. RATESDOTCA’s Rate Matrix lets you compare pricing for all key mortgage types and terms.
Rates are based on a home value of $400,000
| Insured | 80% LTV | 65% LTV | Uninsured | Bank Rate | |
|---|---|---|---|---|---|
| 1-year fixed rate | 6.44% | 6.49% | 6.49% | 7.35% |
6.59%
|
| 2-year fixed rate | 5.59% | 5.59% | 5.59% | 5.84% |
6.19%
|
| 3-year fixed rate | 4.79% | 4.89% | 4.89% | 4.99% |
5.29%
|
| 4-year fixed rate | 4.79% | 4.94% | 4.89% | 4.89% |
5.19%
|
| 5-year fixed rate | 4.44% | 4.64% | 4.44% | 4.44% |
4.84%
|
| 7-year fixed rate | 5.49% | 5.59% | 5.59% | 5.89% |
5.90%
|
| 10-year fixed rate | 5.74% | 5.84% | 5.84% | 6.09% |
7.25%
|
| 3-year variable rate | 5.75% | 5.90% | 5.80% | 5.80% |
8.10%
|
| 5-year variable rate | 5.40% | 5.65% | 5.45% | 5.45% |
5.94%
|
| HELOC rate | N/A | N/A | N/A | N/A | N/A |
| Stress test | 5.25% | 5.25% | 5.25% | 5.25% | N/A |
Updated
A recent survey by a large real estate company shows that half of Canadians living in the Vancouver area would consider buying a home in an affordable city if they could find work, or work remotely.
There’s a reason for that. British Columbia has some of the highest real estate prices in the country. According to the BC Real Estate Association, the average MLS residential price in BC in April 2024 was up 1.4% to $1 million, compared to an average price of $992,440 in the same time last year. In Greater Vancouver, the average price was more than $1 million, coming in at $1.049 million. Within Canada, the average price was $703,446.
BC also has the highest average mortgage loan value in the country. By comparison, the national average, as of the third quarter 2023, stood at $327,899. In BC that value was $454,516.
Interestingly, the population moving out of BC has grown. In 2023, Statistics Canada said net interprovincial migration was negative for the first time since 2012 at negative 8,624 people. In that same year, more than 67,000 people left the province.
And yet, housing prices remain the highest in the country. Why?
Despite the mass migration, BC’s population has been growing. As of January 1, 2024, Statistics Canada says that BC’s population grew to more than 5.6 million people with an increase of 178,515 people. A large chunk of that was driven by immigration with more than 70,000 people moving to the province.
But immigrant or long-standing citizens have a choice in the province when looking for mortgage options. An analysis from the Canadian Credit Union says BC has the largest asses base of credit union movement in Canada and most number of credit unions in the country. This gives people looking for a home a much wider opportunity for mortgage financing when shopping for the cheapest mortgage rates.
Because competition is high among different financial service providers, and serving a relatively large population, mortgage rates in BC are relatively low, as they are in Ontario, but compared to other parts of the country.
It appeared for a time that Canada was headed for a recession. In Q4 2023, the Canadian economy managed to avoid that even though Gross Domestic Product was on the down swing.
At the start of the pandemic in 2020 until March 2022, Canadian homebuyers and owners enjoyed low mortgage rates, which gave an impetus to the housing market. But rising inflation came as a harsh reality that the Bank of Canada had to tackle.
The Bank’s policy interest rate hikes starting March 2022, followed by 10 subsequent rate hikes until July 2023, came as a hard shock for Canadian real estate investors and homebuyers. The rate hikes not only shocked the housing market but also diminished aspirations of many first-time homebuyers who had to either wait for the house prices or mortgage rates to go down.
Between 2020 and 2022, before the Bank of Canada’s rate hike spree began in March 2022, variable mortgage rates were lower than fixed rates and the preferred interest rate over the latter. However, that changed as fixed mortgage rates (which are directly impacted by bond yields) began to hover lower than the variable rates starting December 2022. Variable rates kept increasing until July 2023 when Bank of Canada decided to halt its policy interest rate hike at 5%. In terms of fixed rates, October 2023 saw bond yields peak at a 17-year high but then fall again over the next month. This, as inflation and the economy showed positive signs of recovery. With that, lenders saw the possibility of future rate cuts and began reducing their rates somewhat. The Bank of Canada cut its target rate by 0.25%, and caught up with them, in June 2024.
Rates in BC have been steadily declining and are expected to do so, as long as the Bank of Canada cuts rates as well.
Our RATESDOTCA inhouse data shows the difference between the lowest 5-year fixed mortgage rate and lowest 5-year variable mortgage rate between 2020 and 2024 in British Columbia, very similar to everywhere else in the country. As you can see from the graph, the 5-year variable rate mortgage increased significantly causing much distress to new homebuyers or existing homeowners looking for a renewal. Those borrowers who bought homes at lower rates in 2020 would soon be in for a shock with looming renewals at higher mortgage rates.
Comparing mortgage rates from various lenders would give you a clearer picture of what’s the best rate for you. Lenders in British Columbia will check your financial situation and offer you a rate. No two lenders offer the same mortgage rate, so it is advisable to reach out to as many lenders as possible and seek quotes.
At RATESDOTCA, we help you get quotes from 50+ mortgage lenders in just a few minutes. Your quotes from 50+ lenders from across Canada are only a click away. All you have to do is answer a few questions and wait for your rates to appear.
British Columbia, despite an increase in people moving out of the province, has seen its population grow as a result of high immigration levels. As of January 1, 2024, Statistics Canada says that BC’s population reached an estimated 5.6 million, growing by 178,515 people in 2023, an annual growth rate of 3.3%. This is also the highest annual population growth since 1971 in terms of population counts. In Q4 2023, 32,909 immigrants moved to BC.
BC, unlike other parts of the country, is an attractive destination for a more moderate climate, rugged outdoor landscape, and in many ways a gateway to trade and commerce with Pacific nations overseas.
Based on British Columbia Real Estate Association (BCREA) data, May 2024 sales were down 11.6% compared to May 2023, which amounts to 8,075 unit sales being recorded that month. Greater Vancouver and Fraser Valley has the highest units sold in May, 2,733 and 1,433 units sold, respectively.
The average price for a residential home in BC was also down 1.5% to $1,001,736 in May 2024 compared to an average price of $1,017,310 in May last year. This could be mainly due to the reduction in house prices y-o-y in Powell River. The area recorded a 30.7% decrease in house prices in May 2024 compared to May 2023. The residential average price in Powell River in May 2024 was $539,153 compared to $778,299 in May 2023. Residential unit sales were flat year-to-date at 31,573 units sold.
While there has been a pick-up in sales activity to more normal levels in May 2024 compared to previous months, combined with increasing increased active listings, it still does not match the market level that was this time last year (May 2023).
According to the BCREA housing data, May 2024 residential active listings were up 42.4% to 39,602 compared to 27,814 active residential units listed in May 2023. However, the unit sales in May 2024 were lower at 8,075 unit sales compared to 9,136 units sold in May 2023. This clearly shows that while people are eager to list and sell their properties, potential buyers are reluctant due to high interest rates, and are waiting on the sidelines for the Bank of Canada to cut interest rate.
BCREA reports that in 2023, the total sales dollar volume was $71 billion, an 11.5% decline from 2022.BCREA Chief Economist Brendon Ogmundson said, “the highest mortgage rates in over 15 years led to the slowest sales in a decade for BC.”
With the Bank of Canada rate cuts on the horizon, the outlook for 2024 H2 appears much brighter. The BOC rate hikes from March 2022 to July 2023 was terrible for the real estate market all over the country for sure.
It would seem that BC had experienced a dip in housing prices in as buyers (and sellers) stayed on the sidelines heading into summer, perhaps waiting for interest rates to come down. As inflation has decreased and the Bank of Canada has now started reducing rates, buyers have come back to the market driving up prices in the province. The sentiment that rates would come down, even before they did, also change the mentality of buyers to start looking. Here is the difference in unit sales and average house price in May 2024 compared to the same period last year.
| Real Estate Board | May 2024 Residential Average Price | May 2023 Residential Average Price | % change | May 2024 Unit Sales |
|---|---|---|---|---|
| BC Northern | $418,408 | $417,118 | 0.3 | 493 |
| Chilliwack | $830,082 | $806,878 | 2.9 | 291 |
| Fraser Valley | $1,074,923 | $1,091,195 | -1.5 | 1,433 |
| Greater Vancouver | $1,345,157 | $1,312,157 | 2.5 | 2,733 |
| Interior* | ||||
| Okanagan | $749,878 | $787,937 | -4.8 | 909 |
| Kamloops | $607,877 | $600,883 | 1.2 | 279 |
| Kootenay | $563,758 | $544,989 | 3.4 | 322 |
| South Peace River** | $306,847 | $284,303 | 7.9 | 47 |
| Powell River | $539,153 | $778,299 | -30.7 | 34 |
| Vancouver Island | $755,148 | $731,781 | 3.2 | 794 |
| Victoria | $1,026,217 | $1,018,619 | 0.7 | 740 |
| Province Total (round off) | $1,001,736 | $1,017,310 | -1.5 | 8,075 |
Source: BCREA
Mortgage rates reflect not only Bank of Canada target rates but your individual circumstances. While some external factors are beyond your control and can impact your mortgage others can be controlled by you. Here are some factors that can impact your mortgage rate in BC:
Average new mortgage loan values have been on an interesting journey in BC. The hot real estate market as of the first quarter in 2019 and up until the third quarter of 2023 saw a gradual increase. In 2019, the average new mortgage loan stood at 344,204 and grew to 489,628 in 2021 as prices climbed steadily as well.
Following that, and after the Bank of Canada starting increasing rates to curb inflation, changes occurred in the new mortgage loan values. In the second quarter of 2022, loans peaked at $491,960 but then dropped over the next three quarters. It wasn’t until the second quarter of 2023 when loans started edging up again to 439,590 (after a low of 429,370). Demand grew as pent up buyers started coming back to the market and anticipation grew of a lower interest rate environment, something we are just starting to see now. After seeing higher average value of new mortgage loans in Q1 and Q2 of 2022, the amount started to decline in Q4 2022 and Q1 2023 mainly due to the pressure higher interest rates were causing. Most borrowers could not afford or has difficulty in getting approval for loan and borrowing at a higher rate. House prices also began to come down in Q4 2022 through to Q2 2023. The average value of new mortgage loans began picking up in Q3 2023 and Q4 2023 (but was lower than the previous quarter) because the summer housing market saw some respite with house prices picking up.
| Geography | 2022Q1 | 2022Q2 | 2022Q3 | 2022Q4 | 2023Q1 | 2023Q2 | 2023Q3 | 2023Q4 |
|---|---|---|---|---|---|---|---|---|
| Canada | $361,001 | $366,163 | $363,654 | $325,612 | $320,298 | $314,540 | $338,522 | $327,899 |
| British Columbia | $484,941 | $491,960 | $487,366 | $439,719 | $429,370 | $439,590 | $465,283 | $454,516 |
Source: CMHC-Equifax Canada
The Bank of Canada’s consistent interest rate hikes from March 2022 to July 2023 made it difficult to qualify for mortgage loan for many potential buyers.
The average scheduled monthly payment of new mortgage loans, according to a CHMC report, in BC compared to other provinces is listed below. The significant increase in the average monthly mortgage payment started in Q3 2022 mainly due to the rise in Bank of Canada’s policy interest rates since April 2022. Moreover, since the Bank of Canada held its policy interest rate stable since July 2023, the housing market improved slightly as house prices increased but monthly payments increased as well due to still high interest rates
| Geography | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 |
|---|---|---|---|---|---|---|---|---|
| Canada | $1,594 | $1,722 | $1,909 | $1,923 | $1,984 | $1,920 | $2,074 | $2,143 |
| British Columbia | $2,038 | $2,234 | $2,506 | $2,553 | $2,607 | $2,623 | $2,793 | $2,913 |
Source: CMHC
Both the national average and the BC average of scheduled monthly payments for new mortgages have increased over the past few years. It’s no surprise, given that 2022 marked the year that the Bank of Canada started to raise interest rates. At the same time, supply decreased and home prices continued to climb as inventory shrunk.
Buying your first home is a serious decision but there are things to do ahead of time that can make the journey easier and less stressful.
British Columbia has a robust mortgage market comprised of mortgage brokers, credit unions, Canada’s big banks, and of course a small percentage of private and alternative lenders.
British Columbia’s mortgage market, like many other parts of Canada, also sees aggressive competition from international banks and financial institutions, such as HSBC, as well as Canada’s Big 5 banks. CIBC and BMO have tended to dominate the market for higher-end properties, which comprises a large part of the Vancouver and Victoria real estate markets
Mortgage brokers are a third and vital component of British Columbia's competitive landscape, and they are a major reason why the province has the second-best mortgage rates of any province in the country.
Finding the lowest mortgage rates in British Columbia and be done in a few ways:
British Columbia’s population density is predominantly situated in and around the Greater Vancouver and Victoria areas, and in the southern part of the province’s interior, that allows for a greater concentration of mortgage providers in those markets. British Columbia mortgage brokers are often able to offer the lowest mortgage rates on the market. The largest brokerages operating in the province include:
Some of the top online discount brokers that are licensed in British Columbia include:
As mentioned earlier, British Columbia is home to a large and healthy contingent of credit unions operating in the province. In fact, three of the five biggest cooperative lenders in the country lend in British Columbia.
Some of the top British Columbia credit unions include:
Some of the lowest mortgage rates in British Columbia can often be found from credit unions, particularly through their mortgage promos during the busy spring homebuying season.
If you’re shopping for a home, don’t rule out a mortgage from one of British Columbia’s top credit unions.
If you’re able to grab a great mortgage deal, it could be worth making the switch from your big bank or existing financial institution.
Got more questions about British Columbia mortgages? We’ve got answers.
RATESDOTCA can help you save hundreds of dollars annually by simply comparing rates from 50+ lenders. You're making an informed decision based on all the choices rather than jumping on the first mortgage offer you see.
RATESDOTCA is one of the best places to compare mortgage rates. We have access to 50+ lenders across Canada, such as the Bank of Nova Scotia, TD Bank, National Bank, Desjardins, Home Trust, and many others, that are put side by side to find you the best deal possible.
When choosing a mortgage, you want to go into the situation with the most knowledge possible. When you compare current London mortgage rates on RATESDOTCA, you're doing important research ahead of a life-changing decision.
RATESDOTCA is constantly updated with the latest rates on the market, so check back frequently for new deals.
The minimum down payment required for a mortgage in British Columbia, is consistent with the national guidelines set by the Canada Mortgage and Housing Corporation (CMHC). Here are the standard down payment requirements based on the purchase price of the home:
For homes priced up to $500,000: The minimum down payment is 5% of the purchase price.
For homes priced between $500,000 and $999,999: The minimum down payment is 5% of the first $500,000 and 10% of the portion exceeding $500,000.
For homes priced $1 million or more: The minimum down payment is 20% of the purchase price.
It's important to note that these are general guidelines, and specific lenders or mortgage insurers may have their own requirements. Additionally, a larger down payment can sometimes be advantageous for securing better mortgage terms and reducing the overall cost of borrowing.
It doesn’t get simpler than this — RATESDOTCA has a range of mortgage calculators that you can use to determine your monthly mortgage payments. All you need to do is feed the mortgage tool with the required information and you’d get the mortgage amount that you’ll have to pay each month.
*Based on the difference between estimated deep-discount 5-year fixed rates from Canada's top six banks and the lowest comparable rates on RATESDOTCA, as of January 14, 2022.
Shivani is a Content Manager at RATESDOTCA, focusing on mortgages. She is an experienced communication and marketing professional who specializes in content strategy and SEO optimization. Shivani ensures that our written materials meet the highest standards of quality and relevance.
She holds a Digital Marketing Management certificate from the University of Toronto, a Business Communications certificate from the University of British Columbia, a Master’s degree in Mass Communication from Symbiosis Institute of Media and Communications and a Bachelor's degree in English from the University of Delhi.
Shivani has previously worked as a deputy digital productions editor with PMNA-The Canadian Press, and as an editor with The Globe and Mail, Toronto Star, and the Investor's Digest of Canada. She has also worked in reputed news media groups in India and the Middle East.
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