Find the best mortgage rate in British Columbia

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: March update

On March 15, 2023, the Canadian Real Estate Association released the latest home sales and average price data for the British Columbia real estate market, based on the month of February.

The numbers reveal that the BC housing market continues to sustain steep declines in terms of sales activity compared to February of last year, which is now regarded to be the peak of the housing market in terms of transactions and home values. A total of 4,780 homes traded hands in the province, marketing a -46.5% year-over-year decline. The average BC home price, meanwhile, remains -14.8% below last year’s levels, at $940,885.

The number of homes for sales has also steadily increased from last year’s levels. While the number of newly listed homes fell in February by -34.8% (representing 9,379 properties brought to market), the total months of inventory – which reflects the long-term supply picture – rose to 4.3, up from 2.2 in February  2022. Overall, the BC housing market could be considered to be in balanced territory, with a sales-to-new-listings ratio of 50.2%. That’s a dramatic turnaround from the hot sellers’ market conditions seen in 2022, when the ratio sat at 75.6%. CREA considered a ratio between 40 - 60% to indicate a balanced market, with below and above this threshold to represent buyers’ and sellers’ markets, respectively.

 

British Columbia 2023 home sales and price forecast

Notoriously known as Canada’s most expensive housing market, home prices did rise in British Columbia over the course of 2022, coming to an average of $996,994, indicating a 7.5% increase from 2021. However, according to CREA, that trend is set to reverse in 2023, as the impacts of higher interest rates affect buyer demand. The average home price in British Columbia is expected to decline by 7% in 2023 to $926,705, before rebounding by 5.6% in 2024.

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 homebuyers, 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

Source: Province of British Columbia

BC first-time homebuyer rebate

First-time homebuyers 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 homebuyer incentives in Canada.