Best Mortgage Rates In B.C. For May 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.

Rates as of May 3, 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.

B.C. rates currently vary from 6.3% to 8.9% for 3-year variable mortgage and 5.34% to 7.20% for 3-year fixed mortgages. Borrowers looking for 5-year variable rate mortgages can expect rates of 5.9% to 7.22%, and borrowers looking for a 5-year fixed-rate mortgage can expect rates between 4.84% and 7.04%.

According to Forbes Advisor Canada research, the best rates in B.C. can be found at Nesto Inc, at the following rates: 3-yr. variable: 6.35% 3-yr. fixed, 5.34%, 5-year variable 5.90%, 5-yr. fixed: 4.84%, 10-yr. fixed: 5.54%

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 April 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.

The B.C. market remains one of the most expensive in Canada, with residential prices in the province climbing 6.5% year-to-date compared to the previous year. Yet this doesn’t appear to be dampening demand for B.C. real estate. According to the BCREA , sales activity remains far stronger than expected, even after taking high interest rates into account.

About the B.C. Housing Market

Out of the province’s major housing markets, Metro Vancouver remains the most expensive. Data from the Real Estate Board of Greater Vancouver (REBGV) suggests the price of a detached home in B.C.’s largest urban area cost $2,007,900 in February 2024. But it isn’t the province’s only pricey region. The Fraser Valley’s average benchmark price for February 2024 (the most recent data available) was $1,485,600, up 8.4% year-over-year, according to Canadian Real Estate Association (CREA) data. Meanwhile, CREA’s data reports that Victoria’s home prices averaged $1,247,000 for the same month, down from $1,251,000 in February 2023.

How Do I Get the Best Mortgage Rate in B.C.?

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.