Best Mortgage Rates In B.C. For November 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 October 24, 2024, the 5-year benchmark bond yield is currently at 2.995%, down 111.77 basis points (or 1.1177%) 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 5.95%, though some banks may post a different rate. For example, TD Bank’s prime mortgage rate is currently 6.10%. 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. Then on July 24, the central bank cut rates by another 25 basis points to 4.5%, and again on September 4 to 4.25%. Most recently, on October 23, 2024, the Bank cut rates by 50 basis points to 3.75%. The BoC is widely expected to implement more rate cuts throughout 2024 and into 2025.

Related: How Mortgage Rates And Interest Rates Work

The B.C. market remains the most expensive in Canada, though the average residential price is cooling and solidly below the $1 million mark to $942,969, down 2.8% year-over-year,  according to the most recent October 15 statistics released by the British Columbia Real Estate Association (BCREA). 

Sales remain sluggish, down 2.1% since September 2023 and B.C. MLS sales were 25% lower for the 10-year average in September. “Thus far, falling mortgage rates have not had the expected impact on home sales,” said BCREA Chief Economist Brendon Ogmundson. “That said, there has been interesting regional variation with markets on Vancouver Island and in the North recording more historically normal activity while the Lower Mainland and parts of the Interior lag behind.”

Out of the province’s major housing markets, Greater Vancouver remains the most expensive, with the average residential home costing $1.252 million, down 4% year-over-year. The Fraser Valley takes second place as the priciest market, with the residential average price at over $1.037 million, up 0.6% from September 2023. Meanwhile, Victoria’s residential prices averaged almost $960,198 for the same month, falling below the $1 million threshold and down 4.5% from the same time period last year. Powell River has seen the biggest decline year-over-year as the residential price averaged $625,460 in September 2024, down 18.6% from the same period last year when the average price tallied $768,375.

In its most recent rate announcement on October 23, 2024, the Bank of Canada (BoC) supersized its key interest rate cut by 50 basis points to 3.75%, its fourth consecutive rate cut. The BoC was widely expected to continue rate cuts with this announcement.

“We took a bigger step today because inflation is now back to the 2% target and we want to keep it close to the target,” said BoC Governor Tiff Macklem in his press conference opening statement. “Now our focus is to maintain low, stable inflation. We need to stick the landing.”

This latest announcement marked a shift in tone as the central bank was no longer talking about moving towards target but maintaining it. Price pressures are no longer broad-based and business and consumer expectations are nearing normal, said Macklem, adding, “We are back to low inflation.”

Headline inflation has eased from 8.1% in June 2022 to 1.6% in September 2024 and now sits below the central bank’s 2% target. To maintain target, household spending and business investment need to improve, and the upward pressure from shelter and other services needs to continue softening: “The upward and downward forces on inflation need to balance out,” notes Macklem.

In its most recent Monetary Policy Report, issued in October 2024, the BoC projected that inflation will remain close to the 2% target, surpassing its July forecast that inflation wouldn’t return to target sustainably until the second half of 2025: “There are both upside and downside risks to the Bank of Canada’s outlook for inflation, and the Bank is equally concerned with inflation rising above the target or falling below it.”

The biggest downside risk is that it could take longer than anticipated for household spending and business investment to pick up. On the upside, lower interest rates could fuel a strong rebound in housing activity.

Overall, Macklem said the risks around the inflation forecast are “reasonably balanced.” As for future rate cuts: “If the economy evolves broadly in line with this forecast, we anticipate cutting our policy rate further to support demand and keep inflation on target,” he said. “The timing and pace of further interest rate cuts will depend on incoming information and our assessment of its implications for the inflation outlook. We will take our monetary policy decisions one at a time.”

The next rate announcement is on December 11, 2024.

Related: The Bank of Canada Cuts Key Interest Rate to 3.75%

Canada’s inflation rate was 1.6% in September, better than expected and lower than the 2.0% print in August. The deceleration year-over-year was driven largely by lower gasoline prices, which were down 10.7% year-over-year.

Historically, higher costs for mortgages and rent have put sustained upward pressure on inflation and still keep headline inflation elevated, but costs have started to moderate, albeit slowly; shelter inflation came in 5.0% year-over-year in September (down from 5.3% last month) and rent inflation cooled slightly to 8.2%, compared to 8.9% in August. While we’re seeing some drops in mortgage interest rates, mortgage interest rate costs are still high, up 16.7% year-over-year in September, down from 18.8% the month before. 

Not only is headline inflation below the BoC’s 2% target (and core inflation measures remain stable), but it is also significantly lower than its 39-year high of 8.1% in June 2022. This downward trend is encouraging to economists, who widely expect more rate cuts through 2024 and into 2025, eventually bringing the policy rate towards neutral, between 2.25% and 3.25%. 

Statistics Canada will release the October CPI figures on November 19, 2024. 

Related: Inflation Rate Slows To 1.6% In September 

According to Forbes Advisor Canada, the best mortgage rates in B.C. are:

• 3-year variable: 5.05% (Nesto Inc., Dominion Lending Centres, The Mortgage Centre)
• 3-year fixed: 4.64% (Dominion Lending Centres, The Mortgage Centre)
• 5-year variable: 4.80% (Nesto Inc.)
• 5-year fixed: 4.09% (Nesto Inc.)
• 10-year fixed: 5.29% (Island Savings, Valley First)

Rates as of November 5, 2024.

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 $942,969, according to a September 2024 release from the British Columbia Real Estate Association (BCREA). With a minimum down payment of 7.35%, that means paying $69,297 upfront, with a mortgage amount of $908,619, which includes $34,947 mortgage default insurance.

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 is discontinued. Read our Feds Scrap First-Time Home Buyer Incentive Program article to learn more.