Best Vancouver mortgage rates
The rate table shows 5-year fixed mortgage rates in Vancouver. To compare other rate types and terms, click on the filters icon beside the down payment percentage.
What are the current mortgage rates in Vancouver?
As of February 5, 2024, the average of the Big 5 Banks’ best 5-year fixed mortgage rates in Vancouver was 5.16%, and the average of the Big 5 Banks’ best 5-year variable mortgage rates was 6.65%.
Although these are the average current mortgage rates in Vancouver at the Big 5 Banks, they are not the lowest mortgage rates available to you. To see the best Vancouver mortgage rates, be sure to compare lenders on our table above. It’s updated multiple times throughout the day to reflect any change in Vancouver mortgage rates, so you can be sure you’re always seeing the most up-to-date rates.
What are the lowest mortgage rates in Vancouver?
As of February 5, 2024, the best 5-year fixed mortgage rate in Vancouver stood at 4.84%, while the best 5-year variable mortgage rate was at 5.95%.
Be sure to check our rate table above to see the best Vancouver mortgage rates on the market. It’s automatically updated throughout the day, which means that you’re always looking at the most current Vancouver mortgage rates.
What will mortgage rates be in Vancouver in 2024?
Over the past couple of years, Canadian borrowers endured a historically steep rate hiking cycle from the Bank of Canada in efforts to tamp down runaway inflation that saw the target for the overnight rate soar from 0.25% in January 2022 to 5% by the fall of 2023, where it remains today. During that same period, bond yields, spurred by the same inflation that caused the rate hikes, climbed steeply, causing fixed mortgage rates to more than double. After all that, it’s no wonder people in Vancouver and across the country are wondering whether the new year will usher in some relief for mortgage rates.
There now seems to be room for some optimism, as the Bank’s rate hiking cycle is almost certainly done, barring any major surprise. In its last announcement on January 24, the Bank of Canada held the overnight lending rate at 5% for the fourth month in a row, listing sluggish GDP numbers, weakening consumer spending and falling business investment as among the main drivers of its decision. It noted, however, that the latest inflation reading from December of 3.4% was well above its inflation target rate of 2%, and stated that rates would therefore need to stay higher for longer in order to get inflation down to where it needs to be. In light of this, most experts now believe that the Bank will hold the target for the overnight rate steady at 5% for most of the year before starting to cut rates towards the end of 2024 and into 2025. Should this materialize, the prime rate in Canada will descend from its current level of 7.2% and bring variable mortgage rates down with it.
Fixed mortgage rates are not tied directly to the Bank of Canada’s rate decisions, but rather to the bond market, which has been highly volatile, as anxious investors react to any sign of rising inflation or other negative economic indicators. After attaining a 16-year peak of 4.42% in October, relenting inflation allowed bond yields to descend to the low 3% range in December and into January, which permitted lenders to discount their fixed-rate mortgage offerings. However, a higher-than-expected US jobs report and a surprisingly robust GDP reading sent bond yields climbing to the upper 3.5% range, where they are currently situated. In the near term, that means that there is upward pressure on fixed mortgage rates. However, in the long term, one can reasonably expect that, as high rates continue to push inflation down, bond yields will eventually fall as well, bringing fixed mortgage rates lower with them.
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.
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Jamie David, Sr. Director of Marketing and Mortgages
Vancouver is Canada’s third largest city, the biggest city in Western Canada and home of Canada’s largest port. As such, it is of huge economic importance, and its multicultural diversity, natural beauty and green aesthetic are world-renowned. It’s not surprising, then, that the Vancouver real estate market is one of Canada’s hottest, rivalled only by that of Toronto.
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.
Best mortgage rates in Vancouver +
|Big 6 Bank
|Big 6 Bank
|Big 6 Bank
|Big 6 Bank
Vancouver at a glance
- Population: 631,486 - largest city in BC and 8th largest city in Canada
- Average Home Price: $1,161,300 in January 2024 - a 7.3% year-over-year increase
- 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”.
February 2024 Vancouver housing market update
On February 2, 2024, the Real Estate Board of Greater Vancouver (REBGV) released the most recent figures for the Vancouver housing market for the month of January 2024. The latest data indicates that 2024 has gotten off to a strong start in Vancouver, with a total of 1,427 residential properties sold in the month of January. This marks a 38.5% annual increase, and is up on a monthly basis as well.
Some 3,788 homes were newly listed for sale in Vancouver in January, marking a year-over-year increase of 14.5%, and well above the 1,137 new listings seen in December. Nevertheless, with buying activity having surged, the Vancouver housing market is heating up. “It’s hard to believe that January sales figures came in so strong after such a quiet December, which saw many buyers and sellers delaying major decisions. If sellers don’t step off the sidelines soon, the competition among buyers could tilt the market back into sellers’ territory as the available inventory struggles to keep pace with demand,” remarked Andrew Lis, REBGV director of economics and data analytics.
The benchmark home price in Vancouver in January 2024 stood at $1,161,300, up by 7.3% from the same time last year, but down by a slight -1.1% on a monthly basis.
Resources for buying a home in Vancouver
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
|On $200,001 to $2,000,000
|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 home buyer rebates
Most of the first-time home buyer 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 home buyers, as BC land transfer tax rates are some of the highest in the country!
Under the BC first-time home buyer 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 home buyer rebate, new home buyers in Vancouver are also eligible for first-time home buyer 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 home buyers 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.
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
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