Best Mortgage Rates In B.C. For July 2024

We reviewed 100 mortgage lenders that do business both online and in-person throughout Canada. The lenders we reviewed represent some of the largest mortgage lenders by volume in Canada, which includes banks, credit unions and online lenders. Lenders that didn’t provide their mortgage rates or don’t operate in B.C. were not eligible for review.

Our conventional rates (rates that are uninsured) were generated through publicly available posted rates on the lender’s website, but also through the following borrower profiles that we presented to the lender anonymously by phone or online:

Profile 1

• Property Type: Single-Family Home
• Property Usage: Primary Residence
• Purchase Price: $790,000
• Down Payment: 20% ($158,000)
• Credit Score: 700-719
• Postal Code: N2L 1V6 (Waterloo, Ontario)

Profile 2

• Property Type: Single-Family Home
• Property Usage: Primary Residence
• Purchase Price: $1,300,000
• Down Payment: 20% ($260,000)
• Credit Score: 700-719
• Postal Code: V6A 2W5 (Vancouver, British Columbia)

Profile 3

• Property Type: Single-Family Home
• Property Usage: Primary Residence
• Purchase Price: $300,000 ($60,000)
• Down Payment: 20%
• Credit Score: 700-719
• Postal Code: S4P 3C8 (Regina, Saskatchewan)

Profile 4

• Property Type: Single-Family Home
• Property Usage: Primary Residence
• Purchase Price: $440,000 ($88,000)
• Down Payment: 20%
• Credit Score: 700-719
• Postal Code: B3S 0J1 (Halifax, Nova Scotia)

Our scores out of five are scored based on the following factors:

• Rate – 75%
• Timeliness – 5%
• Prepayment privileges – 5%
• Penalty calculation type – 10%
• Availability of discounted rates – 5%

Though these rates are accurate at the time of publication, they are intended only to provide a ballpark figure and sample of the rates a lender may offer in that province for that particular mortgage term. That does not mean that you will qualify for the above rates or that the lender in question hasn’t changed those rates since publication. Please consult a mortgage lender or broker to get the best rate possible for your particular property-buying circumstance and financial situation.

Fixed-rate mortgage rates are priced off of Government of Canada 5-year bond yields that fluctuate daily. Five-year fixed mortgage rates are typically 1.5% above the 5-year yield, though this spread can vary between 1% and 2%. This means if bond yields go up, fixed-rate mortgage rates also go up. Periods of high inflation (which occur when the CPI is above the Bank of Canada’s 2% target) cause bond yields to rise; conversely, when inflationary pressures cool, bond yields also come down. For example, in 1981 when the CPI averaged 12.5%, Canada experienced the highest inflation in 33 years. In September 1981, bond yields hit 18.78% and the 5-year fixed mortgage rate hit 21.75%.

As of June 13, 2024, the 5-year benchmark bond yield is currently at 3.346%, down 29.09 basis points (or 0.2909%) from one year ago.

Variable-rate mortgages are affected by the Bank of Canada’s (BoC) monetary policy, namely interest rate hikes and cuts that occur eight times a year. The prime rate, or the rate the banks use to set the interest rates on their variable-rate products, is currently 6.95%. Variable rates will be quoted as plus or minus compared to the prime rate.

On June 5, 2024, the Bank of Canada cut its key interest rate by 25 basis points to 4.75%, its first rate cut in over four years. The BoC is widely expected to implement more rate cuts this year.

Related: How Mortgage Rates And Interest Rates Work

The B.C. market remains one of the most expensive in Canada, with residential prices in the province climbing 1.4% year-over-year, reaching $1.006 million in April 2024, up from $992,440 for the same time last year, according to the most recent May 15 statistics released by the British Columbia Real Estate Association (BCREA). Yet this doesn’t appear to be dampening demand for B.C. real estate. While April was an above-average month for sales activity, with 7,569 sales reported, up 1.5% year-over-year, sales are still slightly below normal, leading to a substantial increase in total inventory. “The market is heading into the summer in a state of relative calm with much more choice for buyers,” notes BCREA chief economist Brendon Ogmundson.

Out of the province’s major housing markets, Greater Vancouver remains the most expensive. This April data from the BCREA shows the average residential home cost $1.31 million, up 0.9% year-over-year. The Fraser Valley takes second place as the priciest market, with the residential average price at almost $1.05 million, up 2.4% from April 2023. Meanwhile, Victoria’s residential prices averaged almost $984,000 for the same month, down 0.7% from the same time period last year.

In its most recent rate announcement on June 5, 2024, the Bank of Canada (BoC) cut its key interest rate by 25 basis points to 4.75%, its first cut in over four years. This made Canada the first G7 bank to begin easing rates. The BoC was widely expected to begin rate cuts with this announcement.

“We’ve come a long way in the fight against inflation,” noted BoC Governor Tiff Macklem in his press conference opening statement. “And our confidence that inflation will continue to move closer to the 2% target has increased over recent months.”

While he admitted that inflation remains above the Bank’s 2% target and shelter price inflation is still high, CPI inflation has eased from a high of 8.1% in June 2022 to 2.7% in April 2024. This shows that monetary policy is working, noted Macklem, adding, “And with further and more sustained evidence underlying inflation is easing, monetary policy no longer needs to be as restrictive. In other words, it is appropriate to lower our policy interest rate.”

In its most recent Monetary Policy Report in April 2024, the BoC projected that inflation would stay around 3% into the second quarter of 2024, ease below 2.5% in the second half of the year and return to target in 2025. While risks to a continued downward trend with inflation persist, namely geopolitical risks, an overheated housing market or if wage growth remains high relative to productivity, there is growing confidence that this is the first of a series of cuts to come.

“If inflation continues to ease, and our confidence that inflation is headed sustainably to the 2% target continues to increase, it is reasonable to expect further cuts to our policy interest rate,” noted Macklem, adding, “But we are taking our interest rate decisions one meeting at a time.” The next rate announcement is on July 24, 2024.

Related: The Bank of Canada Cuts Key Interest Rate To 4.75%

B.C. rates currently vary from 6.00% to 8.65% for 3-year variable mortgage (average 6.81%) and 5.04% to 6.99% for 3-year fixed mortgages (average 5.78%). Borrowers looking for 5-year variable-rate mortgages can expect rates of 5.65% to 6.95% (average 6.30%), and borrowers looking for a 5-year fixed-rate mortgage can expect rates between 4.54% and 6.84% (average 5.21%).

Rates as of July 9, 2024.

According to Forbes Advisor Canada research, the best rates in B.C. can be found at Nesto Inc, at the following rates: 3-yr. fixed, 5.04%%, 5-year variable 5.65%, 5-yr. fixed: 4.54%, 10-yr. fixed: 5.79%. However, Dominion Lending Centres offer a 3-year variable rate for 6.00%, compared to Nesto’s 6.05%.

Open vs Closed Mortgage: An open mortgage lets a borrower pay off the balance as fast as they want without paying a prepayment charge, but charges higher interest rates. On the other hand, a closed mortgage’s interest rates are usually lower, but limits prepayment charges.

Fixed Mortgages: A fixed-rate mortgage doesn’t fluctuate with the prime rates charged by a lender. It remains “fixed”, from the moment a lender signs a contract with a borrower until the term ends.

Variable Mortgages: The interest rate charged on a variable-rate mortgage varies depending on the prime rate charged by a lender. If it drops, more of a borrower’s monthly payments go towards paying off the principal instead of the interest. But if it rises, the opposite happens—and can even increase a borrower’s monthly payments if they’re insufficient to cover the new interest rate.

Plenty of things affect a mortgage quote. Not all of them will affect each borrower to the same degree: it all depends on a borrower’s unique circumstances, the lender, and the economy at large. Here are the most important factors to consider:

• Your down payment: The larger a borrower’s down payment, the less money they’ll need from a lender in the first place. In practice, this means borrowers who pay more up front typically pay lower mortgage rates than those who don’t.
• Your amortization period: Generally speaking, mortgages with longer amortization periods carry lower rates than mortgages with shorter ones. Lenders make more in interest off of longer amortizations.
• Property usage: How a property will be used matters to a lender. A primary residence is often seen as less risky because a borrower is more likely to continue paying it (and avoid default) compared to an investment property where they don’t live.
• Mortgage type: Some types of mortgages, like closed mortgages, are typically more affordable than open mortgages. This is because a closed mortgage limits a borrower’s prepayment options, so they aren’t as likely to repay the mortgage faster than a lender expects.
• Your employment status: A borrower with a reliable source of income, such as a full-time job or a business with several years of stable revenue, are appealing to lenders, especially compared to a borrower with a spotty work history.
• Your credit score: The higher a borrower’s credit score, the more trustworthy they appear to a lender. This will likely qualify them for a lower mortgage rate.
• Your debts: Debts can also affect whether or not a lender believes a borrower is financially responsible. A borrower should not have a debt load over 44% of their gross income, including monthly housing costs, to be considered for a mortgage. Also, a borrower’s gross debt service, or the percentage of monthly income covering housing costs, shouldn’t exceed 39%.

The average price of a home in B.C. is $1.02 million, according to an June 2024 release from the British Columbia Real Estate Association (BCREA). With a down payment of 20%, that means paying $204,000 up front, with a principal mortgage amount of $816,000.

When you purchase a property in B.C. that is registered at the Land Title Office, you must pay a property transfer tax, unless you qualify for an exemption, such as the newly built home exemption, or a family exemption if you’re transferring a principal or recreational residence to a related family member.

The property tax you pay is based on the fair market value of the property.

The general property tax rate is:

If a residential property is worth more than $3 million, an additional 2% tax will be applied.

The best way for any borrower to find the best mortgage rate is to contact mortgage brokers or lenders in their area. They’re the experts on securing the best rate possible. That said, any borrower can improve their chances of a good rate by keeping their debts as low as possible, holding a steady job and saving as much as possible for a down payment.

B.C. Mortgage Lender Regulations

As with all Canadian banks, B.C. lenders are federally regulated by the Office of the Superintendent of Financial Institutions (OSFI) through the Bank Act, the Trust and Loan Companies Act, and other legislation. That said, the B.C. Financial Services Authority (BCFSA) regulates trust companies and credit unions in the province.

B.C. Mortgage Broker Regulations

The BCFSA is also responsible for regulating mortgage brokers and real estate professionals. Established through the Financial Services Authority Act, the Authority handles misconduct issues and ensures brokers are suitable to carry out their services.

The easiest way to save money on a mortgage is to ensure it is as small as possible. That means saving up for a 20% down payment. But it also means giving lenders as few reasons as possible to doubt your financial reliability. Having a stable job (ideally with several years experience), a high credit score, and little to no debt are also attributes a lender will look on favourably when considering your application.

B.C. homebuyers can take advantage of several federal programs to lower the costs associated with down payments. These include the First Home Savings Account, which lets anyone who hasn’t bought a home in the last four years to save up to $8,000 a year, or $40,000 in total, tax-free.

There’s also the First-Time Home Buyer Incentive. Homeowners can receive anywhere from 5% to 10% of a home’s value, in equity, from the Canadian government. However, a mortgage for the home in question cannot be more than $480,000. The deadline for new applications and resubmissions to this program is now March 21, 2024. No new approvals will be granted after March 31, 2024. After this date, the program will be discontinued. Read our Feds Scrap First-Time Home Buyer Incentive Program article to learn more.