Current British Columbia mortgage rates
The rate table shows 5-year fixed mortgage rates in British Columbia. To compare other rate types and terms, click on the filters icon beside the down payment percentage.
What are the mortgage interest rates today?
As of December 6, 2023, the best 5-year fixed mortgage rate in BC is 5.19%, while the best variable mortgage rate in BC is 5.95%.
To ensure that you’re seeing the most current mortgage rates in BC, consult our rate tables above. They’re updated automatically throughout the day to reflect any rate changes, so you can rest assured that you’re always looking at the best mortgage rates in BC available to you.
Which bank has the lowest interest on mortgage loans?
As of December 6, 2023, the Big 5 Banks offering the lowest mortgage interest rates are RBC, with a 5-year fixed mortgage rate of 5.69% and CIBC with a 5-year variable mortgage rate of 6.7%.
While these are the lowest Big Bank rates available in BC, they are not the lowest mortgage rates in the market. To find the best mortgage rates in BC, be sure to check out our mortgage tables above and shop around among the different providers. Our mortgage rate tables are regularly updated to ensure that they always display the lowest mortgage rates in BC at any given time.
Can you get a 30-year amortization?
The short answer is: yes, you can get a 30-year amortization period. The maximum amortization period for homes purchased with a down payment of 20% or less is 25 years, but if you put down over 20%, you can opt for a longer amortization period.
While longer amortization periods typically allow for smaller monthly payments, over time, you will pay thousands of dollars in interest fees. Many homebuyers prefer to have a shorter amortization period in order to reduce the total interest payable.
What will mortgage rates be in BC in 2023?
From March 2022 to January 2023, the Bank of Canada hiked its target for the overnight rate eight times in succession in a bid to control runaway inflation, taking it from 0.25% to 4.5%. As variable mortgage rates and HELOC rates are both directly tied to the overnight lending rate, this caused them to go soaring – the lowest variable mortgage rate before the rate hike cycle began was 0.85%, compared to 5.55% when the Bank adopted a conditional rate hold stance earlier this year.
At its March and April announcements, the Bank held the target for the overnight rate steady, and released commentary indicating that, so long as inflation continued to abate, it would maintain a rate hold stance. However, persistently elevated core inflation combined with surprisingly robust GDP growth in the first quarter of 2023 and strong job numbers drove the Bank to end its rate hold stance and raise its target for the overnight rate by 0.25% in June and once more in its July 12 announcement, taking it to 5%. In its last announcement on October 25, the Bank of Canada held the target for the overnight rate steady at 5% for the second month in a row, citing weak GDP figures, reduced consumer spending, a slightly more slack labour market, and September’s lower-than-expected CPI of 3.8% as the key drivers of its decision. However, the Bank noted in its accompanying commentary that inflation remained well above its goal rate of 2%, and was very clear that, should inflation not trend in the desired direction, it would not hesitate to effect a further rate hike in 2023. Any time the Bank of Canada raises its target for the overnight rate, variable mortgage rates rise almost immediately in response.
Fixed mortgage rates are tied to bond yields, rather than to the Bank of Canada’s target for the overnight rate. Soaring inflation sent bond yields climbing as well in 2022 and into 2023, and with them, fixed mortgage rates. A variety of internal and external factors has made the bond market wildly volatile and unpredictable in 2023. After bond yields reached a peak of 4.4% in October - a level not witnessed since 2006 - the combination of the Bank of Canada’s October 25 rate hold and the subsequent rate hold by the US Fed on November 1 has caused them to slide down to the 3.8% range. As a result, a number of lenders have been able to reduce the cost of their fixed-rate mortgage offerings by about 30 basis points (0.3%). If bond yields continue to trend downwards, we can expect that fixed mortgage rates will do so as well.
WATCH: December 6, 2023 Bank of Canada announcement
Compare current mortgage rates across the Big 5 Banks and top Canadian lenders. Take 2 minutes to answer a few questions and discover the lowest rates available to you.
Best fixed rate in Canadasee my rates
Jamie David, Sr. Director of Marketing and Mortgages
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.
Best mortgage rates in BC +
|5.19%||5 years||Fixed||Canadian Lender|
|5.64%||4 years||Fixed||Canadian Lender|
|5.89%||3 years||Fixed||Canadian Lender|
|5.99%||7 years||Fixed||Big 6 Bank|
|6.24%||2 years||Fixed||Big 6 Bank|
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%
December 6, 2023: Bank of Canada announcement highlights
On December 6, 2023, the Bank of Canada announced that it would maintain the target for the overnight rate at 5.00%.
- The Bank’s decision to hold the overnight rate steady for a third month in a row will be welcome news for variable-rate mortgage holders and those with a home equity line of credit (HELOC), who can enjoy continued stability. They can also now begin to think about rate cuts on the horizon.
- Fixed mortgage rates are tied directly to the bond market rather than to the Bank of Canada’s decisions. That said, in the wake of the Bank’s decision to hold its policy rate for a third straight month, bond yields descended to the 3.3% range, the lowest they have been since May. We can thus reasonably expect that fixed mortgage rates will decrease as well, as they have been since mid-November.
- The Bank pointed to a number of key economic factors as the drivers of its decision, including weak Q3 GDP, slackening consumer spending, and, most importantly, declining inflation.
- Although the usual seasonal slowdown means that we probably won’t see any immediate effects of this decision on the housing market, expectations of upcoming rate cuts could revive it in 2024.
British Columbia housing market: November 2023 update
On November 15, 2023, the Canadian Real Estate Association (CREA) published the latest national housing market figures for the month of October 2023. The most recent numbers indicate that October was another strong month for residential sales in British Columbia, although the market appears to be cooling somewhat. A total of 5,383 homes were sold, indicating a 2% annual increase, and just slightly below the previous month’s figure of 5,540. New listings improved noticeably on an annual basis, with the 11,878 homes coming onto the market representing a 9.9% year-over-year improvement.
In spite of the relative increase in new listings, BC home buyers are still up against some of the steepest home prices in Canada. The average home price in BC stood at $967,221 in October, which was the highest of any Canadian province or territory. It represents an annual increase of 4%, but is slightly down from September’s figure of $969,306. Continuing a welcome trend first observed over the summer, increased new listings have helped to ease buying conditions in British Columbia. The sales-to-new-listings ratio, which CREA uses to gauge buyer competition in the marketplace, eased -4.1% year over year to 53.1%. CREA considers a ratio between 40 - 60% to represent a balanced housing market, with above and below that threshold reflecting sellers’ and buyers’ markets, respectively.
British Columbia home sales and price forecast
2022 was a year of steep declines in the British Columbia real estate market, as buyers grappled with significantly higher interest rates following a rapid rate hiking cycle from the Bank of Canada. Home sales plummeted by -35.2% over the course of 2022, and are expected to be largely flat this year, with a total of 82,221 total transactions (1.75%). However, this is forecast to improve somewhat in 2024, as rate hike conditions ease; CREA calls for a total of 92,830 homes to sell, marking a 12,9% year-over-year increase.
The average home price in BC is also set to tumble slightly, to come in at $968,145 this year, down -2.8% from last. That’s expected to recover by 3% in 2024, however, with the new average coming in at $997,391.
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.
|Purchase Price||BC land transfer tax rate|
|0 - $200,000||1.0%|
|$200,000 - $2,000,000||2.0%|
|$2,000,000 - $3,000,000||3.00%|
|$3 million +||3.00% for non-residential property
5.00% for residential property
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.
Changes on the horizon
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
Jamie David, Director of Marketing and Head of Mortgages
Jamie has 15+ years of business and marketing experience. She contributes her mortgage expertise to The Globe and Mail and authors Ratehub’s mortgage and homebuying guides. read full bio