Find the best mortgage rate in Vancouver

As the third-largest population centre in Canada and the capital of British Columbia, Vancouver is home to one of the hottest real estate markets in the country, rivalled only by Toronto.

This may or may not benefit you depending on where in your homebuying journey you are. However, a healthy real estate market does result in a healthy mortgage market, which means more choice for Vancouver homebuyers. Of course, that can make it hard to decide on the right mortgage product.

Below we've laid out some of the things you should consider before looking for a mortgage in Vancouver. When you're ready, you can compare personalized quotes for mortgage rates in Vancouver with the tools at the top of this page.

Vancouver at a glance

• Population: 631,486 - largest city in BC and 8th largest city in Canada 
• Average Home Price: $1,170,700 in April 2023 - a -7.4% year-over-year decrease 
• Average Household Income: $65,327
• Percentage of Homeowners: 47%

Fun Facts About Vancouver 

• Vancouver has some of the mildest weather in Canada, with a growing season of 237 days and an average of only 9 days with snowfall per year. 
• With over 60 movies and TV series filming there annually, Vancouver has a thriving film industry and is commonly called “Hollywood North”.

 

May 2023 Vancouver market update

The Real Estate Board of Greater Vancouver (REBGV) has released the latest housing market figures for April 2023, revealing a noticeable bounceback in residential sales accompanied by rising home prices. Some 2,741 homes were sold in Vancouver in April, a -16.5% year-over-year decrease, but an +8.1% increase from the previous month. The average home price of $1,170,700 was down -8.8% from April 2022, but up +2.9% from this past March. 

The major driver of rising home prices in Vancouver is a historic lack of supply. There were 8,790 homes listed for sale on the MLS system in Metro Vancouver in April, representing a -4.2% year-over-year decrease, and down a whopping -20.9% below the 10-year seasonal average. According to the Real Estate Board of Greater Vancouver, with inventory levels at a near record-low, any uptick in demand was bound to exert upward pressure on home prices. This dearth of supply has helped to push Vancouver home prices up by 5.8% since January 2023, and will likely continue to do so for the foreseeable future so long as demand continues to grow.

 

Comparing the best mortgage rates in Vancouver

The comparison table at the top of this page lists the best mortgage rates available in Vancouver, up to the minute. Comparing rates between multiple providers and mortgage brokers is the best thing you can do to get the lowest rate possible.

Of course, your personal rate may be different from the rates listed above. The rate you're eligible for can change based on things like your down payment, the price of the house, your credit score, which lender you choose, as well as what the property is being used for.

Luckily, you can get personalized quotes for mortgage rates without filling in a full mortgage application. Use the tools at the top of this page and we’ll provide you with personalized mortgage quotes from Vancouver lenders in under two minutes.

 

Vancouver closing costs

When applying for a new mortgage in Vancouver, you'll need to consider the closing costs associated with all property purchases. Most of these costs will need to be paid upfront, so you’ll need to save the cash to pay for them (in addition to your down payment).

British Columbia Land Transfer Tax: When buying a home in Vancouver, you'll be subject to the British Columbia Land Transfer Tax. This is a marginal tax, based on the purchase price of the property. This tax will need to be paid in cash, and cannot be added to your mortgage. The British Columbia land transfer tax rates are as follows:

Purchase Price of Home	Marginal Tax Rate
	First $200,000	1.0%
On $200,001 to $2,000,000	2.0%
Over $2,000,000	3.0%
Over $3,000,000	A further 2% for residential properties (5% total)

Mortgage Default Insurance: If your mortgage is an insured mortgage, you'll need to pay for mortgage default insurance, often called CMHC insurance. This will normally be included as part of your mortgage, so you won't need to provide it in cash.

These are just some of the closing costs you’ll have to pay in Vancouver. Learn more on our closing costs education centre page.

 

Vancouver first-time homebuyer rebates

Most of the first-time homebuyer programs in Canada are administered at the provincial level, and typically involve a full or partial rebate of the province's land transfer tax. A rebate of this kind does exist in British Columbia. This should come as a relief to Vancouver's first-time homebuyers, as BC land transfer tax rates are some of the highest in the country!

Under the BC first-time homebuyer rebate program, homes purchased for $500,000 or less will receive a full refund of the land transfer tax. For homes with a purchase price of between $500,000 and $525,000, a partial refund is given. Check out our BC Land Transfer Tax calculator page to learn more.

In addition to the BC first-time homebuyer rebate, new homebuyers in Vancouver are also eligible for first-time homebuyer programs at the federal level, including:

• RRSP Home Buyers' Plan: This allows you to borrow up to $35,000 from your RRSP for your down payment. The money must be paid back within 15 years.
• First Time Home Buyers' Tax Credit: This is a tax credit of up to $750, available when you file your taxes for the year in which you bought your first home.
• GST/HST New Housing Rebate: If your home is newly built, it may be subject to GST or HST. This rebate gives you some or all of that tax back.
• Tax-Free First Home Savings Account: This new savings vehicle will be available starting in 2023. It is a strong no-tax vehicle that will help first-time homebuyers who are saving for a down payment. Read more about the First Home Savings Account on our blog. 

Each of these schemes has eligibility criteria and additional rules that apply, which you'll need to investigate further before you apply for them.

Vancouver Empty Homes Tax

All homeowners in Vancouver are required by law to submit an annual declaration to determine whether their property is subject to the municipal Empty Homes Tax. This declaration is mandatory for all homeowners, whether they reside in the property or not. Only one declaration is mandatory per property, so, for example, if a property is co-owned, only one of the owners is required to submit the declaration.  

The tax rate for properties subject to the Empty Homes Tax is 3% for those deemed empty in 2022, and it will rise to 5% for homes deemed empty in 2023. For more information on the Vancouver Empty Homes Tax, be sure to consult the official municipal website. 

 

Sources:

1. Canada Population
2. Royal LePage
3. Statistics Canada
4. Fun World Facts
5. City of Vancouver