The Best Current Mortgage Rates in Vancouver

Vancouver mortgage rate market characteristics in 2024

Canadian homebuyers are starting to see some relief as inflation has finally decreased over the course of 2024. As a result, the Bank of Canada has started lowering key lending rates and mortgage rates are also dropping with fixed rates in some areas going below the 4% mark.

Homebuyers in larger cities, like Vancouver and Toronto, often have different experiences than Canadians in smaller parts of the country. These are two of the largest markets with the most expensive real estate prices in the country. According to the Canadian Real Estate Association (CREA), the median sale price for single detached homes edged down 3.7% on a year-over-year basis to $1,300,000 in the second quarter of 2024 – but still high relative to other parts of Canada.

In Vancouver, CREA says the benchmark price for a detached home was $2,049,000 as of July 2024. This represents a 2.1% increase from July 2023.

But despite high prices for homes, mortgage rates in these cities can be more competitive than in other smaller areas.

Why? While people living in larger cities can expect to pay more for housing (and the cost of living, in general), there is an advantage to that as well. Larger cities like Vancouver and Toronto have many options to choose from – including banks, private lenders and credit unions – that will compete and drive down rates, perhaps more so than in a place that has less competition.

In British Columbia, you’ll find different lenders including:

• Butler Mortgage
• Prospera
• Coast Capital
• Canadian Imperial Bank of Commerce (CIBC)
• Laurentian
• Bank of Montreal (BMO)
• Toronto-Dominion (TD) Bank
• Peoples Bank
• First National
• Simplii Financial
• Canadian Western
• Royal Bank of Canada (RBC)
• National Bank
• Lendwise
• Community Trust
• Investors Group
• Scotiabank
• Motusbank

Average house prices in Vancouver (2023-2024)

The average home price in Greater Vancouver was $1,179,700 as of September 2024, according to Greater Vancouver Realtors. This is a decrease of 1.8% from the same time last year and a month-over-month decrease of 1.4%

There were 6,144 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service in Metro Vancouver in September 2024. That’s a 12.8% jump compared to the 5,446 properties listed in September 2023. This was also 16.7% above the 10-year seasonal average.

Detached homes

The average price of detached houses climbed 4.6% from the previous month, or 0.8%, on a year-over-year basis, to a price of $2,189,852.

Sales of detached homes in September 2024 reached 516, a 9.8% decrease from the 572 detached sales recorded in September 2023.

Apartments

Sales of apartment homes reached 940 in September 2024, a 4.9% decrease compared to the 988 sales in September 2023. The benchmark price of an apartment home is $762,000. This represents a 0.8% decrease from September 2023 and a 0.8% decrease compared to August 2024.

Attached homes

Attached home sales in September 2024 totalled 378, a 7.4% increase compared to the 352 sales in September 2023. The benchmark price of a townhouse was $1,099,200 in September 2023. This represents a 0.5% decrease from September 2023 and a 1.8% decrease compared to August 2024.

The data shows that home sales increased in all sectors this year over last year, possibly due to a drop in home prices as well as interest rates. Also, the population has grown in Vancouver, hitting about the 3-million mark, leading to so-called density legislation, which allows several units on former single-family lots and much higher density around transit-oriented development.

How to get the lowest Vancouver mortgage rates

If you’re looking to secure a low mortgage rate in Vancouver, here a few things you can do:

• Compare mortgage rates. Comparison shopping with sites like RATESDOTCA can help you find the cheapest mortgage rates in minutes (for free).
• Negotiate for a lower rate. It is possible to negotiate a lower rate with a lender, but it requires some research on your part. Using a rate comparison site can be helpful in this instance. Let the lender know you’ve seen lower rates elsewhere. If they’re unwilling to move on price, they may be able to offer other terms that offset the higher rate.
• Improve your credit score. Having a credit score of over 750 will help you qualify for a preferred rate. It will take time to improve your score if it’s below that benchmark. You can do this by paying off any existing debts and keeping your spending at 30% or less than your total credit allowance going forward.
  
  Paying your credit card statements on time (and preferably in full) is also key. In addition, do not close any credit card accounts; downgrade them to a low or no-fee option instead and use them a few times a year to ensure they remain active. In a joint mortgage, lenders consider the credit scores of both borrowers.
• Get an insured mortgage. High-ratio mortgages often qualify for low rates because they need to be insured by mortgage insurer (e.g., CMHC, Sagen, Canada Guaranty, among others). Lenders have a guarantee that they will recoup their loan if the borrower ever defaults, which removes risk from the contract. High-ratio mortgages are only available for homes under $1 million in Canada. Down payments must be less than 20%, with the cutoff being 5%.
• Choose the right term. The most popular length for a mortgage term in Canada is five years. Five years is the sweet spot for many borrowers in terms of interest rate and principal. Shorter terms tend to have lower interest but high monthly payments. Longer terms (up to 10 years) also charge higher interest rates.
• Reduce your debts. A key interest metric that lenders look at is your debt-service ratio. They refer to this to see if you would be able to afford your mortgage payments or if you’re at risk of defaulting. People who have enough income to service their mortgage and pay off any pre-existing debts as well as other life expenses are seen as less of a risk.
• Secure a reliable source of income. Mortgage lenders look for applicants that have a strong record of employment. A history of job instability will hurt your chances of approval.
• Watch interest rates. For a decade, Canadians enjoyed a period of ultra-low interest rates. It’s unlikely rates will be that low again (barring a major global event), but it’s still important to pay attention to the Bank of Canada’s interest rate decisions. It will save you money on interest payments in the long run.

Compare and find the best Vancouver mortgage rate

For Vancouverites looking to a big bank for their mortgage, they may want to reconsider.

While there’s convenience in having all your accounts held by the same financial institution, there’s a price to pay for that convenience.

About 90% of consumer banking is now done online, and consumers are benefiting from exponentially greater choice because of it.

One of the biggest game-changers has been the advent of mortgage-rate comparison websites, such as this one. Homebuyers today are now empowered with up-to-date rate information that allows them to more effectively make decisions on which mortgage is right for them.

In many cases, consumers are finding that their bank doesn’t offer the best mortgage rates. The difference between a big-bank mortgage rate and one from another financial institution can be a quarter of a percentage point or more, which translates into thousands of dollars of interest over the term of the mortgage.

As a result, Vancouverites, like many other Canadians, are discovering the importance of comparing online to find the best mortgage rates.

One area where the big banks, such as RBC and TD, have an advantage, is with their Home Equity Lines of Credit (HELOCs) and uninsured mortgage rates.

When in doubt, however, the service of a mortgage broker – which is free in practically all cases – can assist greatly. You can find a number of brokers on this site who can explain rate details and handle the tedious paperwork process. All the brokers on this site are routinely competitive on rates, so you don’t have to worry about paying too much.

If you want to save even more on your mortgage, don’t forget to ask your broker if they can 'buy down' your rate further, which means they would forfeit a portion of their commission to get you an even lower rate. On a Vancouver-size mortgage, an extra 1/10th of a percentage-point rate buydown can save you a few thousand dollars. Albeit, the lowest-priced brokers already quote their rock-bottom rates in many cases.

The best mortgage rates in Vancouver are typically available during the busy spring homebuying season. That’s when many lenders, including the Big 6 banks, roll out their mortgage rate promotions. Of course, this is mainly relevant if you have the luxury of choosing when to purchase your house.