Let's help you find the best mortgage rate in BC

Finding a great mortgage rate can save you thousands of dollars over the course of your mortgage. On a $500,000 mortgage with a 25-year amortization, a difference of 0.3% in your rate will add around $75 to your monthly payment. That would see you spend an extra $22,500 over the life of your mortgage! So, qualifying for the best mortgage rate possible should be a high priority. 

The easiest way to access the best rates in Canada is to compare mortgage rates from multiple lenders.

Getting the best mortgage rates used to be a daunting task. With so many different types of mortgages, providers, terms and conditions, and qualifying criteria to consider, it’s a lot of work for one person! Ratehub.ca makes it easy to choose better, by showing you the best mortgage rates in British Columbia, all in one place. We compare the lowest rates from the Big 5 banks, smaller banks, credit unions, as well as BC’s top mortgage brokers, all at no cost to you.

Fixed-rate mortgages rates are set for the whole term of your mortgage. This is great if you want steady, predictable payments. Variable rates, on the other hand, can fluctuate over your mortgage term, so your monthly payments can also vary. While variable rates are normally lower than fixed rates, there is a risk that rates may rise.

In BC, fixed-rate mortgages are more popular than variable rates, with more than 65% of mortgages in the province using them (Source: Statistics Canada).

To learn more, read our guide on fixed vs. variable rates.

It depends. Fixed rates suit some people, while variable rates suit other people. Fixed rates are popular due to the stability they offer, but variable rates can offer more savings over time, depending on market conditions.  When deciding, consider your appetite for risk, your financial situation, the market conditions, and the length of your mortgage term. 

If you're worried about rates rising, then fixed rates might be the right choice for you.  However, if you're sure rates will go down during your mortgage term - and your household budget can manage increases in your monthly payment - then variable rates could be more appealing. 

Your mortgage pre-payment option determines how you can increase the size of your monthly payments, or whether you can make a lump-sum payment directly towards the principal on your mortgage. Your options will be set out in your mortgage contract.

The first pre-payment option you have is to increase your monthly payment amount by a certain, set percentage. This increase in payment will reduce your amortization period and thus, the total interest paid on your mortgage.

A second option is to make a lump-sum payment directly towards the principal of your mortgage. The percentage amount by which you are allowed to make this lump sum repayment is based upon your mortgage's initial principal value.

Closed mortgages generally have limited prepayment options, while open mortgages have more flexible prepayment options but come with a higher rate. While there are some prepayment options with closed mortgages, the amount you can increase your monthly payment, and the size of a lump sum payment you can make to your principal, are restricted. There may also be penalties that apply for overpayments.

An open mortgage allows you to increase the size of your payments and make unrestricted lump-sum payments at any time. This flexible mortgage is good if you plan to move in the near future.

Closed mortgages are the most popular choice in British Columbia. This is because they usually have lower rates, and most people don’t expect to increase their mortgage payments.

Rate holds allow you to hold today's current mortgage rates for 60-120 days, depending on the lender. This can be done prior to renewal or closing, to lock in a favourable rate. This protects you if rates rise, and if rates fall, your lender will typically honour the lower rate.

Remember that if you opt for a variable rate, you’ll be locking the rate’s relation to prime, not the rate itself. Also note that while you’re guaranteed a rate for a given amount of time, your final mortgage approval is not guaranteed.

Your mortgage is likely to be the biggest financial decision you ever make, and getting a great deal can save you thousands of dollars over time. Comparing rates and offers from different lenders is the best way to find your ideal mortgage.

Of course, with so many lenders, mortgages, and offers on the market, that’s a daunting task. A good mortgage broker makes it more manageable, as they have access to, and knowledge of, multiple lenders and products on the market.

As well as being convenient, mortgage brokers often have access to exclusive offers and volume discounts, allowing them to get a better rate than what’s advertised publicly - even from the big banks. BC mortgage brokers can also help by giving you advice on current mortgage deals, your credit history, or help you access a HELOC if you need one.

Mortgage brokers are also free for you to use, so there’s no risk in speaking to one about your mortgage. At worst, you’ll get free personalized advice on the mortgage process, and at best you’ll get a great mortgage rate that saves you thousands.