Find the best mortgage rate in Vancouver

Vancouver is Canada’s third largest city, the biggest city in Western Canada and home of Canada’s largest port. As such, it is of huge economic importance, and its multicultural diversity, natural beauty and green aesthetic are world-renowned. It’s not surprising, then, that the Vancouver real estate market is one of Canada’s hottest, rivalled only by that of Toronto.

Below we've laid out some of the things you should consider before looking for a mortgage in Vancouver. When you're ready, you can compare personalized quotes for mortgage rates in Vancouver with the tools at the top of this page.

Vancouver at a glance

• Population: 631,486 - largest city in BC and 8th largest city in Canada 
• Average Home Price: $1,196,800 in March 2024 - a 4.5% year-over-year increase 
• Average Household Income: $65,327
• Percentage of Homeowners: 47%

Fun Facts About Vancouver 

• Vancouver has some of the mildest weather in Canada, with a growing season of 237 days and an average of only 9 days with snowfall per year. 
• With over 60 movies and TV series filming there annually, Vancouver has a thriving film industry and is commonly called “Hollywood North”.

 

April 2024 Vancouver housing market update

On April 8, 2024, the Real Estate Board of Greater Vancouver (REBGV) released the most recent figures for the Vancouver housing market for the month of March 2024. The latest data indicates that sellers, in particular, are coming out in force, sending home listings soaring. Some 2,415 residential properties changed hands in Vancouver in the month of March, marking a -4.7% annual decline, but still well above the previous month’s total of 2,070.

In welcome news for would-be home buyers, a total of 5,002 homes were newly listed for sale, representing a 15.9% increase from the same time last year and up on a monthly basis as well.  “If you’re finding the weather a little chillier than last spring, you may find some comfort in knowing that the market isn’t quite as hot as it was last spring either, particularly if you’re a buyer. Despite the welcome increase in inventory, the overall market balance continues inching deeper into sellers’ market territory, which suggests demand remains strong for well-priced and well-located properties,” noted Andew Lis, REBGV director of economics and data analytics.

Nevertheless, the increase in new listings wasn’t enough to offset robust demand, leading to price growth. The benchmark home price in Vancouver in March 2024 stood at $1,196,800, up by 4.5% from the same period last year, and up by 1.1% on a monthly basis.

Resources for buying a home in Vancouver

Vancouver closing costs

When applying for a new mortgage in Vancouver, you'll need to consider the closing costs associated with all property purchases. Most of these costs will need to be paid upfront, so you’ll need to save the cash to pay for them (in addition to your down payment).

British Columbia Land Transfer Tax: When buying a home in Vancouver, you'll be subject to the British Columbia Land Transfer Tax. This is a marginal tax, based on the purchase price of the property. This tax will need to be paid in cash, and cannot be added to your mortgage. The British Columbia land transfer tax rates are as follows:

Purchase Price of Home	Marginal Tax Rate
	First $200,000	1.0%
On $200,001 to $2,000,000	2.0%
Over $2,000,000	3.0%
Over $3,000,000	A further 2% for residential properties (5% total)

Mortgage Default Insurance: If your mortgage is an insured mortgage, you'll need to pay for mortgage default insurance, often called CMHC insurance. This will normally be included as part of your mortgage, so you won't need to provide it in cash.

These are just some of the closing costs you’ll have to pay in Vancouver. Learn more on our closing costs education centre page.

 

Vancouver first-time home buyer rebates

Most of the first-time home buyer programs in Canada are administered at the provincial level, and typically involve a full or partial rebate of the province's land transfer tax. A rebate of this kind does exist in British Columbia. This should come as a relief to Vancouver's first-time home buyers, as BC land transfer tax rates are some of the highest in the country!

Under the BC first-time home buyer rebate program, homes purchased for $500,000 or less will receive a full refund of the land transfer tax. For homes with a purchase price of between $500,000 and $525,000, a partial refund is given. Check out our BC Land Transfer Tax calculator page to learn more.

In addition to the BC first-time home buyer rebate, new home buyers in Vancouver are also eligible for first-time home buyer programs at the federal level, including:

• RRSP Home Buyers' Plan: This allows you to borrow up to $60,000 from your RRSP for your down payment. The money must be paid back within 15 years.
• First Time Home Buyers' Tax Credit: This is a tax credit of up to $750, available when you file your taxes for the year in which you bought your first home.
• GST/HST New Housing Rebate: If your home is newly built, it may be subject to GST or HST. This rebate gives you some or all of that tax back.
• Tax-Free First Home Savings Account: This new savings vehicle will be available starting in 2023. It is a strong no-tax vehicle that will help first-time home buyers who are saving for a down payment. Read more about the First Home Savings Account on our blog. 

Each of these schemes has eligibility criteria and additional rules that apply, which you'll need to investigate further before you apply for them.

Vancouver Empty Homes Tax

All homeowners in Vancouver are required by law to submit an annual declaration to determine whether their property is subject to the municipal Empty Homes Tax. This declaration is mandatory for all homeowners, whether they reside in the property or not. Only one declaration is mandatory per property, so, for example, if a property is co-owned, only one of the owners is required to submit the declaration.  

The tax rate for properties subject to the Empty Homes Tax is 3% for those deemed empty in 2022, and it will rise to 5% for homes deemed empty in 2023. For more information on the Vancouver Empty Homes Tax, be sure to consult the official municipal website. 

 

Sources:

1. Canada Population
2. Royal LePage
3. Statistics Canada
4. Fun World Facts
5. City of Vancouver