Find the best mortgage rate in Kelowna

As of December 8, 2023, the best 5-year fixed mortgage rate in Kelowna is 5.04%, while the best 5-year variable mortgage rate is 5.95%. 

Using our rate table above, you can compare a whole range of mortgage products available in Kelowna from the Big Banks, credit unions and smaller, regional banks. All of our rate tables are updated automatically over the day to reflect any changes in rates, so you can rest assured that you’re always seeing the most current, best mortgage rates in Kelowna.

The Big Bank with the lowest 5-year fixed mortgage rates in Kelowna as of October 27, 2023, is TD, with 5.53%. The Big Bank with the lowest 5-year variable mortgage rate in Kelowna is CIBC, at 6.7%. 

While these are the lowest mortgage rates in Kelowna on offer from the Big Banks right now, they are not the lowest rates on the market. Use our rate table above to shop around among numerous providers and make sure that you’re getting the best mortgage product for your needs. It’s updated throughout the day, so you’ll always be seeing the lowest mortgage rates currently on offer in Kelowna.

Between March 2, 2022 and July 12, 2023, in response to excessively high inflation, the Bank of Canada implemented 10 rate raises, taking the target for the overnight rate from 0.25% to 5%, where it stands today. As a result, the cost to borrow money has increased significantly, sending variable mortgage rates soaring upwards.

Meanwhile, fixed mortgage rates also climbed steeply over the year, as they are tied to the bond market. The same white-hot inflation that led the Bank of Canada to raise its benchmark lending rate also caused bond yields to rise for most of 2022 and into 2023. 

After an initial series of eight consecutive rate hikes between March 2022 and January 2023, the Bank of Canada adopted a conditional rate hold stance to assess the results of its rate hike cycle.  However, in June and July, the Bank hiked its target for the overnight rate by 0.25% twice in a row in response to intransigently high core inflation data combined with surprisingly robust GDP growth in the first quarter of the year and strong job numbers. Most recently, at its final announcement for the year on December 6, the Bank chose to hold the target for the overnight rate at 5% for a third consecutive time, citing weak Q3 GDP numbers, reduced consumer spending and October’s lower-than-anticipated CPI reading of 3.1% as the principal factors that drove its decision. However, the Bank noted that inflation remained above its target rate of 2%, and reaffirmed its commitment to achieving that target, even if it meant effecting further rate hikes. That said, most experts believe that the Bank’s rate hiking cycle is over, and are predicting rate cuts in the second half of 2024 or in 2025. In light of that, we can expect that variable mortgage rates will hold steady for the rest of the year and into 2024, before coming down whenever the Bank begins cutting the policy rate.

The bond market has been very volatile in 2023, rising and falling at a head-spinning pace in response to a variety of domestic and international factors. In May, June and July, bond yields were climbing in response to persistently high inflation reading and concerns about the US debt ceiling negotiations (among other factors), compelling lenders to raise their fixed mortgage rates. Then, the Bank of Canada’s June and July rate hikes introduced even more instability into the already agitated bond market. While the Bank’s September 6 rate hold did have a slightly calming effect on the bond market, bond yields resumed climbing shortly thereafter, fuelled by fears connected to global instability and “higher for longer” interest rates. They passed the 4.4% mark, forcing lenders to raise their fixed mortgage rates in the latter half of October. This trend finally reversed in the wake of the Bank of Canada’s October 25 rate hold decision, coupled with that of the US Fed on November 1, which sent bond yields falling to levels where lenders could finally begin reducing their fixed mortgage rates. Cooling inflation and a final rate hold decision in 2023 by the Bank of Canada on December 6 has sent bond yields falling yet further, taking fixed mortgage rates down with them. Should bond yields continue to dip, we can expect that fixed mortgage rates will decrease with them.