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: August 2024 update

On August 15, 2024, the Canadian Real Estate Association (CREA) released the most recent national housing market figures for the month of July 2024. Continuing a trend observed over the last several months, the BC housing market is somewhat slow. The latest data indicates that a total of 6,873 residential properties changed hands in British Columbia over the course of June, down on an annual basis by -3.1%, and less than the previous month’s total of 7,015. New listings improved by a noticeable 12.8% on a year-over-year basis, with a total of 15,394 homes coming to market (although this was still less than the 16,292 newly listed in June).

Despite an influx of new listings and subdued buyer activity, BC home buyers still face the highest home prices in the nation. That said, prices are declining. The average home price in BC stood at $962,537 down by -0.5% annually, and noticeably below June’s figure of $998,721. The relative abundance of new listings along with anemic demand helped keep the province in buyers’ market territory. The sales-to-new-listings ratio (SNLR), which CREA uses to gauge competition in the marketplace, came in at 44.6%, down by -7.3% on an annual basis. CREA considers a ratio between 45 - 65% to represent a balanced housing market, with above and below that threshold reflecting sellers’ and buyers’ markets, respectively.

Read more: July home sales fizzle as buyers await more rate cuts

September 4, 2024: Bank of Canada announcement highlights

On September 4, 2024, the Bank of Canada announced that it would reduce the target for the overnight rate by -0.25%, bringing it down from 4.5% to 4.25%. This is the third rate cut implemented by the Bank of Canada since March 2020, with the first two carried out in June and July of this year. 

• The Bank indicated declining inflation as the primary driver of its decision, noting that July’s CPI of 2.5% was in line with expectations, while inflation in the United States and elsewhere is also falling. 
• Holders of variable-rate mortgages and home equity lines of credit (HELOC) will assuredly be happy to see their rates and payments go down for the third consecutive month. 
• Fixed mortgage rates are tied directly to the bond market rather than to the Bank of Canada’s rate decisions. However, in anticipation of a likely rate cut, some lenders had already started discounting their fixed rates in the days prior to the Bank’s announcement. Now that another rate cut is officially on the books, more lenders will undoubtedly follow suit. 
• While prices and rates remain elevated, it will be interesting to see what effect this third rate cut has on the housing market, which has been rather anemic in 2024. Earlier rate cuts in June and July resulted in a small bump in activity, so a third such cut could well bring more buyers back to the market. 

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