Best Mortgage Rates In B.C. For February 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 February 10, 2025, the 5-year benchmark bond yield is 2.705%, down 100.39 basis points (or 1.0039%) from one year ago and down 25.95 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 5.20%, though some banks may post a different rate. For example, TD Bank’s prime mortgage rate is currently 5.35%. 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, 2024, the Bank cut rates by another 50 basis points to 3.25% and most recently on January 29, 2025, the bank cut rates to 3%. 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, with residential prices once again above the $1 million mark to $1.013 million, compared to $960,057 in December 2023, up 5.6% year-over-year,  according to the most recent January 13, 2025, statistics released by the British Columbia Real Estate Association (BCREA). By comparison, the national average price was $676,640, up 2.5% on a year-over-year basis.

 “Home sales closed the year on a much stronger note than in 2023,” noted BCREA Chief Economist Brendon Ogmundson. “A stronger finish to 2024 pushed home sales just above last year’s total, setting up a strong hand-off to 2025.”

Residential unit sales were up 2.1% year-over-year at 74,434 units. 

Out of the province’s major housing markets, Greater Vancouver remains the most expensive, with the average residential home costing $1.275 million, up 2.8% year-over-year. The Fraser Valley takes second place as the priciest market, with the residential average price at over $1.065 million, up 10.5% from December  2023. Meanwhile, Victoria’s residential prices averaged almost $962,653 for the same month, 5.6% from the same time period last year. The Kootenay region saw the biggest year-over-year change, with prices up 18.3% to $534,592 in December 2024 while Kamloops saw a 3.5% drop, with December 2024 prices averaging $572,710.

At its most recent rate announcement on January 29, 2025, the Bank of Canada (BoC) cut its key interest rate by 25 basis points to 3%, its sixth consecutive rate cut, marking the end of quantitative tightening. While smaller than the last two “supersized” 50 basis point cuts, the BoC was widely expected to continue rate cuts with this announcement.

“Inflation has been close to the 2% target since last summer. Monetary policy has worked to restore price stability…Lower interest rates are boosting household spending and economic activity is picking up,”  said BoC Governor Tiff Macklem in his press conference opening statement. However, he added that the threat of U.S. tariffs created uncertainty with the central bank’s projections, which were not incorporated into their outlook or most recent Monetary Policy Report: “The potential for a trade conflict triggered by new U.S. tariffs on Canadian exports is a major uncertainty. This could be very disruptive to the Canadian economy and is clouding the economic outlook.”

Headline inflation has eased from 8.1% in June 2022 to 1.8% in December 2024 and now firmly sits within the central bank’s 1% to 3% target. In recent months, business and consumer expectations have normalized and there is no longer evidence of broad-based inflationary pressures, noted Macklem; even shelter price inflation, which has been historically elevated, is slowly coming down.

However, at the time of its announcement, Macklem said that U.S. President Trump’s threat to impose 25% tariffs on Canadian imports and a long-lasting and broad-based trade conflict would “badly hurt economic activity in Canada.”  

“Unfortunately, tariffs mean economies simply work less efficiently—we produce and earn less than without tariffs,” said Macklem. “Monetary policy cannot offset this. What we can do is help the economy adjust.”

He added, ”As we consider our monetary policy response, we will need to carefully assess the downward pressure on inflation from weakness in the economy, and weigh that against the upward pressure on inflation from higher input prices and supply chain disruptions.”

Since the central bank’s announcement, President Trump announced that he is moving ahead with a 25% tariff on Canada and Mexico as of Tuesday, February 4, 2025. In response, Canada announced retaliatory tariffs of 25% on $155 billion of U.S. goods. Economists responded that Trump’s move could throw Canada into recession and cause unemployment to surge. 

BMO chief economist Douglas Porter wrote in a research note that while the bank previously forecast two more cuts in April and July, bringing the benchmark rate to 2.5%, “We now look for the quarter-point pace to continue each meeting until October, thus ending at 1.5%.” National Bank chief economist and strategist Stéfane Marion wrote that there is a “strong argument for an emergency or inter-meeting interest rate cut by the BoC” of at least 50 basis points, followed by two additional 25 basis point cuts in March and April, bringing the policy target rate to 2% by spring.

However, after some last-hour negotiations with Prime Minister Trudeau, Trump has announced a 30-day pause on imposing tariffs on Canada and Mexico.

The next scheduled rate announcement is on March 12, 2025.

Related: The Bank of Canada Cuts Key Interest Rate to 3%

Canada’s inflation rate came in line with the Bank of Canada’s expectations though slightly lower than analysts’ forecasts, slowing to 1.8% in December. The deceleration was driven mainly by the fed’s GST/HST holiday that brought down prices for restaurant food and alcohol. Excluding food, December’s inflation rate rose 2.1%.

On a monthly basis, the CPI declined 0.4% in December. The bank’s preferred measures of core inflation also edged down slightly month-over-month, with CPI-median at 2.4% (versus 2.6% in November) and CPI-trim at 2.5% (versus 2.6% in November).

Canadians paid less when dining out in December, with prices down 1.6% year-over-year (marking the index’s first annual decline) and 4.5% compared to November 2024. Prices for alcohol purchased from stores also declined in December, down 1.3% compared with a 1.9% increase in November. Prices fell 4.1% month-over-month.

Prices for toys, games (excluding video games) and hobby supplies decreased 7.2% year-over-year, while the children’s clothing index fell 10.6% in December compared to the same month in 2023.

A note about the GST/HST holiday: Prices in the CPI are final prices, including taxes paid by consumers, meaning that CPI changes 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 include food, alcoholic beverages and tobacco/cannabis products, children’s clothing and footwear, diapers, car seats and toys, games, books, newspapers and Christmas trees. Approximately 10% of the all-items CPI is affected by the tax exemption. The impact of the tax break will continue into January 2025 as the full month is impacted, compared to only 18 days in December.

Statistics Canada will release the January CPI figures on February 18, 2025. 

Related: Inflation Rate Slows To 1.8% In December

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

• 3-year variable: 4.55% (Dominion Lending Centres, The Mortgage Centre)
• 3-year fixed: 4.24% (nesto Inc.)
• 5-year variable: 4.15% (nesto Inc.)
• 5-year fixed: 3.94% (nesto Inc.)
• 10-year fixed: 5.29% (Island Savings, Valley First)

Rates as of February 10, 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 $1.013 million, according to a January 2025 release from the British Columbia Real Estate Association (BCREA). With a minimum down payment of 7.53%, that means paying $76,300 upfront, with a mortgage amount of $974,168, which includes $37,468 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.