Find the best mortgage rate in British Columbia

We help you find and compare the best rates from the Big 5 Banks, small banks, credit unions and BC’s best mortgage brokers, at no cost to you. Using our rate tables, you can compare the most current mortgage rates instantly, all in one place. By comparing the best mortgage rates and products in BC, you'll save yourself thousands of dollars and find the right mortgage for you. 

British Columbia at a glance

• Population: 5 million - 3rd largest in Canada after Ontario and Quebec
• Average Household Income: $69,995
• Percentage of Homeowners: 68%

British Columbia housing market: November 2024 update

According to the latest housing data from the Canadian Real Estate Association (CREA) released on November 15, 2024, British Columbia experienced a resurgence in activity in October. Sales activity increased by 33.7% year-over-year, with 7,184 properties changing hands. Despite the surge in sales, the average home price in the province saw a slight decline, dipping by 0.2% to $965,441.

On the supply side, new listings increased by 8.3% year over year, with 13,160 homes entering the market. The months of inventory—which reflects the long-term supply of homes—decreased to 5.4 months, down by -0.5 months compared to the same time last year. This indicates a tightening supply amidst growing demand.

The sales-to-new-listings ratio increased by 10.4%, settling at 54.6%, suggesting a shift toward a balanced market. CREA defines a balanced market as having a sales-to-new-listings ratio between 45% and 65%; a ratio below 40% signals a buyer’s market, while a ratio above 60% indicates a seller’s market.

Read more: National home sales rise 30% in October

October 23, 2024: Bank of Canada announcement highlights

The Bank of Canada cut the Overnight Lending Rate by 50 basis points on October 23, 2024, bringing the rate down to 3.75%. This is the fourth consecutive rate cut since June, reducing borrowing costs by a total of 125 basis points.

• The decision was driven by falling inflation, with CPI dropping to 1.6%, well below the 2% target. Economic concerns, including weak GDP growth and declining GDP per capita, also contributed.
• Variable-rate mortgage holders and those with HELOCs will see their rates and payments decline further as the prime rate drops to 5.95%.
• Fixed mortgage rates, though linked to the bond market and not directly affected by BoC rate changes, may also decrease. In anticipation of this rate cut, some lenders have already lowered their fixed rates, and more are expected to follow now that the cut is official.
• The housing market has been sluggish throughout 2024, but this fourth rate cut could help bring more buyers off the sidelines, particularly with new mortgage policy reforms taking effect on December 15. 
• Looking ahead, another 50-basis-point cut is expected in December as the bank moves closer to its neutral range of 2.25% to 3.25%. But moving too quickly increases the risk of weakening the Canadian dollar, which may fuel inflation and create additional economic challenges.

How do I get the best mortgage in BC? 

Thanks to some beautiful countryside, some of the most livable cities in the world, as well as a busy local and tourist economy, British Columbia is home to a vibrant mortgage and real estate industry. You'll find all the Big 5 Banks and numerous national banks and credit unions here, as well as local banks and credit unions like VanCity Savings Credit Union and Coastal Capital Savings Credit Union. To find the best mortgage rates available in BC right now, consult the rate tables above. 

However, the mortgage with the lowest rate is not always the best mortgage for you. The ideal mortgage is the one that best suits your needs and financial situation. It's critical to shop around and consult a mortgage broker who can provide you with expert, personalized advice and guidance, all for free. 

What factors affect the mortgage rate I get?

The mortgage rates available in BC are only one part of the equation. Your financial situation will greatly determine what rates you’re actually able to qualify for. Here are the most important factors that will affect your personal mortgage rate: 

• Down payment: All property purchases in Canada require a down payment. The minimum down payment ranges from 5% to 20%, depending on how expensive the property is. If your down payment is under 20%, you’ll be required to take out mortgage default insurance (often called CMHC insurance). While having an insured mortgage will cost you more overall, it allows you to access lower mortgage rates, as there’s less risk to your lender. That said, it’s almost always better to put in a larger down payment if you can afford to do so, even if your mortgage rate ends up being slightly higher, as you will still save more overall through the life of your mortgage by not having to pay for mortgage insurance. Remember that BC - and Vancouver in particular - is more expensive than the rest of Canada. In the Greater Vancouver area, where the average home price is over $1 million, a 20% minimum down payment is often required, as homes priced over $1 million are not eligible for mortgage default insurance. 
• Amortization period: Mortgages with amortization periods above 25 years can’t be insured and therefore come with higher mortgage rates. However, a longer amortization period will give you more time to pay off your mortgage thereby lowering your monthly payments. You can use our amortization calculator to see how your monthly payments would vary under different amortization length scenarios. 
• What the property will be used for: Mortgage rates are lower for properties that are owner-occupied, rather than those that are occupied by renters.
• Mortgage type: Mortgages for renewals and purchases typically have lower rates than mortgages for refinancing.
• Income and credit score: With prices in BC being as high as they are, lenders will be especially vigilant about making sure that you’ve got a steady source of income and a good credit history. You can learn more about how to understand your credit score elsewhere on our site. 

Historical trends in BC mortgage rates

BC mortgage rates rise and fall, as do rates throughout Canada. Have a look at this interactive graph showing the lowest mortgage rates in the country over the last several years to give you an idea of how today's rates compare historically.

Source: Ratehub Historical Rate Chart

British Columbia land transfer tax

If you purchase property in British Columbia, you’ll be required to pay the provincial land transfer tax. This is sometimes forgotten by home buyers, despite being one of the largest closing costs associated with buying a home.

In BC, land transfer tax is based on the cost of the property, with a marginal tax rate that increases with the purchase price. 

BC first-time home buyer rebate

First-time home buyers in British Columbia may be eligible for a full or partial rebate of the BC land transfer tax for property purchases of less than $525,000. The full tax may be eligible for a rebate if the price is less than $500,000, while a partial rebate may apply for home worth between $500,000 and $525,000.

It’s best to speak to a BC mortgage broker to determine your eligibility. For information on other opportunities for first-time homebuyers, read our guide to first-time home buyer incentives in Canada.

BC home buyer protection period

On July 21, 2022, the government of British Columbia introduced a home buyer protection period that allows home buyers to back out of a residential purchase up to three business days after they have signed a contract. The goal of this legislation is to ensure that home buyers have the opportunity to arrange for home inspections, secure financing or otherwise conduct due diligence. If, after conducting due diligence, you wish to back out of the deal, there is a relatively low cancellation fee of 0.25% of the purchase price, or $250 for every $100,000. As an example, the cancellation fee for backing out of a deal to buy a $1-million home would be $2,500. The home buyer protection period came into effect on January 1, 2023. 

For more information, check out these helpful pages and articles!

• Mortgage Affordability Calculator
• Mortgage Payment Calculator
• Amortization Calculator
• Variable or Fixed Mortgage Rates
• British Columbia First-Time Home Buyers
• BC Land Transfer Tax Calculator

Sources:

1. Statistics Canada
2. CREA
3. BCREA
4. Statistics Canada
5. Province of British Columbia