Best Mortgage Rates In B.C. For 2025

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 March 24, 2025, the 5-year benchmark bond yield is 2.669%, down 85.17 basis points (or 0.8517%) from one year ago and down 29.52 basis points this year.

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 4.95%, though some banks may post a different rate. For example, TD Bank’s prime mortgage rate is currently 5.10%. 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%, again on September 4 to 4.25%, and then by 50 basis points on October 23 to 3.75%. On December 11, the Bank cut rates by another 50 basis points to 3.25% and again, on January 29, 2025, the bank cut rates to 3%. Most recently, on March 12, the Bank cuts rates to 2.75%. The BoC is widely expected to implement more rate cuts in 2025.

Related: How Mortgage Rates And Interest Rates Work

The B.C. market remains the most expensive in Canada, however, residential prices are back below the $1 million mark to $964,349. This is down 2.4% compared to $987,811 in February 2024,  according to March 2025 statistics released by the British Columbia Real Estate Association (BCREA). By comparison, the national average price was $668,097 in February 2025, down 3.3% on a year-over-year basis. 

“After several months of growing momentum, market activity was hampered in February by the uncertainty surrounding tariffs,” noted BCREA Chief Economist Brendon Ogmundson. “Apprehension from prospective buyers will continue amidst this unfortunate trade war but may be somewhat tempered by lower interest rates on the horizon.” 

Residential unit sales were down 2.8% year-over-year at 9,175 units. 

Out of the province’s major housing markets, Greater Vancouver remains the most expensive, with the average residential home costing $1.224 million, down 4.2% year-over-year. The Fraser Valley takes second place as the priciest market, with the residential average price at over $1.021 million, up 0.4% from February 2024. Meanwhile, Victoria’s residential prices averaged almost $982,330 for the same month, up 3.3% from the same time period last year. 

As of March 24, 2025.

At its most recent rate announcement on March 12, 2025, the Bank of Canada (BoC) cut its key interest rate by 25 basis points to 2.75%, its seventh consecutive rate cut. Given the growing uncertainty caused by the escalating trade war between Canada and the U.S., the BoC was widely expected to continue rate cuts with this announcement.

“The Canadian economy ended 2024 in good shape. Inflation has been close to the 2% target since last summer. Substantial cuts to our policy rate through the second half of last year boosted household spending and economic growth,”  said BoC Governor Tiff Macklem in his press conference opening statement. Headline inflation has eased from 8.1% in June 2022 to 1.9% in January 2025 and now firmly sits within the central bank’s 1% to 3% target. Added Macklem, “However, in recent months, the pervasive uncertainty created by continuously changing U.S. tariff threats has shaken business and consumer confidence.” 

Against this backdrop, Governing Council decided to cut rates by another 25 basis points.

While it will take some time for the impact of higher costs and weaker demand to make their way through the economy, despite our solid economic footing going into 2025, Mackem said that Canada is now facing a “new crisis” and that the economic impact of U.S. tariffs could be “severe” depending on their extent and duration. He added that the “uncertainty alone is already causing harm.”

“Monetary policy cannot offset the impacts of a trade war. What it can and must do is ensure that higher prices do not lead to ongoing inflation. The focus of Governing Council will be on assessing the timing and strength of both the downward pressure on inflation from a weaker economy and the upward pressure from higher costs,” noted Macklem. “As always, the Bank will be guided by our monetary policy framework and our commitment to maintain price stability over time.”

The next scheduled rate announcement is on April 16, 2025.

Related: The Bank of Canada Cuts Key Interest Rate to 2.75%

Canada’s inflation rate came in much hotter than expected, spiking up to 2.6% in February, following a 1.9% increase in January. The broad-based acceleration was driven mainly by the end of the Fed’s GST/HST tax holiday. Lower gas prices helped moderate the upward pressure.

On a monthly basis, the CPI rose 1.1% in February, following a more moderate 0.1% increase in January. The Bank of Canada’s preferred measures of core inflation also heated up month-over-month, with both CPI-median and CPI-trim at 2.9%, compared to 2.7% in January. There is growing concern over the persistent acceleration of core inflation.

As expected, food prices started bouncing back after the end of the GST/HST holiday: food inflation increased 1.3%, while food purchased at restaurants decreased only 1.4%, compared to 5.1% in January. Food purchased from stores is up 2.8% year-over-year. As the GST/HST tax holiday was still in effect during the first 15 days of February, food inflation is expected to keep heating up into the next CPI announcement.

Shelter inflation provided some good news for a change, with shelter hitting the slowest pace of growth since May 2021. Mortgage interest costs (MIC) increased 9% year-over-year and rent increased 5.8%, significantly off their peaks of 31% and 9% respectively.

Gasoline prices slowed on a year-over-year basis, with a 5.1% increase in February compared to a 8.6% gain in January. On a monthly basis, gas prices rose only 0.6%. While higher refinery costs were tempered by global concerns over the impact of Trump’s tariffs, the end of the consumer carbon pricing in April will likely lead to a gradual decrease at the pump.

A note about the GST/HST holiday: Prices in the CPI are final prices, including taxes paid by consumers, meaning that CPI changed due to changes to any taxes. The federal government announced a temporary GST/HST break on certain goods from December 14, 2024, to February 15, 2025; affected goods included food, alcoholic beverages and tobacco/cannabis products, children’s clothing and footwear, diapers, car seats, toys, games, books, newspapers and Christmas trees. Approximately 10% of the all-items CPI  were affected by the tax exemption.

Statistics Canada will release the March CPI figures on April 16, 2025. 

Related: Inflation Rate Spikes Up To 2.6% In February

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

• 3-year variable: 4.30% (Dominion Lending Centres, The Mortgage Centre)
• 3-year fixed: 4.19% (nesto Inc.)
• 5-year variable: 3.95% (nesto Inc.)
• 5-year fixed: 3.64% (nesto Inc.)
• 10-year fixed: 5.29% (Island Savings, Valley First)

Rates as of March 24, 2025.

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 $964,349, according February 2025 statistics from the British Columbia Real Estate Association (BCREA). With a minimum down payment of 7.41%, that means paying $71,435 upfront, with a mortgage amount of $928,631, which includes $35,717 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:

FAIR MARKET VALUE	TAX RATE
Up to and including $200,000	1%
Greater than $200,000 to $2 million	2%
Greater than $2 million	3%

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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.