The BC mortgage market is known for its competitive interest rates from major banks, online lenders, credit unions and mortgage brokers. With the average home price in British Columbia at $963,431 as of March 2025, securing a low mortgage rate can save homebuyers in BC thousands of dollars in interest payments.
This guide provides homeowners and prospective buyers with the key information they need to secure the best possible mortgage rates in British Columbia in 2025. Whether you’re a first-time buyer, looking to renew or refinance, or considering switching lenders, use this resource to maximize savings on your BC mortgage.
What are British Columbia’s Lowest Mortgage Rates?
As of May 2025, mortgage rates in British Columbia remain relatively stable following the Bank of Canada’s decision to hold its overnight rate at 2.75% in April. Here are the current best rates available across different mortgage types and terms:
| Term | Insured Rate | Insurable Rate | Uninsurable Rate |
|---|---|---|---|
| 1-Year Fixed | 4.99% | 5.19% | 5.24% |
| 2-Year Fixed | 4.19% | 4.24% | 4.79% |
| 3-Year Fixed | 3.88% | 3.89% | 4.14% |
| 4-Year Fixed | 4.29% | 4.09% | 4.19% |
| 5-Year Fixed | 3.84% | 3.84% | 4.19% |
| 5-Year Variable | 3.99% | 4.05% | 4.34% |
Mortgage Rates From Top BC Lenders
| Lender | 1 Year Fixed | 3 Year Fixed | 5 Year Fixed | 5 Year Variable |
|---|---|---|---|---|
| RBC | 5.19% | 3.94% | 3.99% | 4.45% |
| TD | 5.19% | 3.89% | 3.84% | 4.15% |
| Scotiabank | 5.19% | 3.94% | 3.94% | 4.45% |
| CIBC | 5.14% | 3.84% | 3.84% | 4.25% |
| BMO | 5.19% | 3.89% | 3.94% | 4.45% |
| HSBC | 5.24% | 4.09% | 4.09% | 4.50% |
| Vancity | 5.15% | 3.84% | 3.79% | 4.35% |
| Coast Capital Savings | 5.09% | 3.59% | 3.54% | 3.99% |
| Blueshore Financial | 5.15% | 3.94% | 3.84% | 4.35% |
| Prospera | 5.14% | 3.84% | 3.79% | 4.25% |
BC Mortgage Market Update
With the prime rate steady at 4.95%, variable mortgage rates will hold at current levels, providing stability for adjustable rate mortgage holders. Fixed mortgage rates, influenced more by bond yields than BoC policy, have also stabilized thanks to yields remaining around 2.6%.
The BoC will monitor conditions closely and remains flexible on future rate moves. Further rate cuts are possible in 2025 if inflation slows and trade risks decline. Variable rates may decrease if BoC drops its overnight rate at subsequent announcements, but increases could follow if inflation persists.
An Outlook on the BC Housing Market
The latest housing market data from the Canadian Real Estate Association (CREA) shows a cooling off of home prices and sales activity in BC during early 2025. BC’s average home price dropped -4.8% year-over-year in March 2025 to $963,431. March BC sales fell -9.6% versus previous year with 5,915 properties sold. New listings surged 16.3% in March, boosting months of inventory to 6.4.
Home prices across BC’s major markets show significant regional variation (March 2025)
| Region | Average Home Price | Year-over-Year Change |
|---|---|---|
| British Columbia | $963,431 | -4.8% |
| Greater Vancouver* | $1,190,900 | -0.6% |
| Fraser Valley | $974,400 | -3.5% |
| Victoria | $891,000 | +3.8% |
| Vancouver Island | $703,900 | +3.7% |
| Chilliwack and District | $747,500 | -0.2% |
| Powell River* | $575,453 | -5.6% |
| BC Northen* | $437,118 | +4.3% |
CREA has downgraded its projections for BC’s housing market in 2025, forecasting a -1.1% decline in year-over-year sales activity and an average sale price of $977,435 across the province. The market is expected to remain buyer-friendly through the remainder of 2025. [Source]
Types of Mortgage Lenders in British Columbia
British Columbia homeowners and homebuyers can choose from a wide range of mortgage lenders:
Major Banks in BC
The Big Five banks ― RBC, TD, BMO, Scotiabank and CIBC ― all have extensive branch networks throughout BC. Second-tier banks like National Bank and HSBC also offer mortgages province-wide.
Digital banks like Simplii and Tangerine provide BC residents mortgage options without having to visit a branch.
Credit Unions in BC
BC has the largest credit union sector in Canada, providing personalized service, competitive rates, and special programs for local residents. Notable BC credit unions include:
- Vancity
- Coast Capital Savings
- BlueShore Financial
- Prospera Credit Union
- Coastal Community Credit Union
- Columbia Valley Credit Union
- Compensation Employees Credit Union
- East Kootenay Community Credit Union
Mortgage Brokers in BC
Mortgage brokers work with multiple lenders to find competitive rates tailored to individual circumstances. They can access monolines like First National, MCAP, and CMLS Financial, which often offer the most competitive rates in the market.
Notable mortgage broker networks in BC include:
- Dominion Lending Centres (including Mortgage Architects and The Mortgage Centre)
- M3 Mortgage Group (including Invis, Verico, and Mortgage Alliance)
- Butler Mortgage
Brokers are particularly valuable for borrowers with unique situations, such as self-employment or credit challenges. In BC, mortgage brokers must be licensed by the BC Financial Services Authority (BCFSA) and adhere to the province’s Mortgage Brokers Act.
BC First-Time Homebuyer Incentives
If you’re buying your first home in BC, be sure to take advantage of these provincial and federal programs:
- BC First-Time Home Buyers’ Program – Exempts first-time buyers from the property transfer tax on homes priced at 500,000 or less. Partial rebate of 8,000 available on homes between 500,000 − 525,000.
- Newly Built Home Exemption – Saves first-time buyers the property transfer tax on newly constructed homes valued at less than $750,000.
- Home Owner Mortgage and Equity Partnership (HOME) – Federal 5% or 10% equity contribution to your down payment through a shared equity mortgage. Must repay when home is sold.
How to Get the Best Possible BC Mortgage Rate?
Follow these tips to ensure you qualify for the most competitive mortgage rates in BC:
- Increase your credit score by paying all bills on time, reducing debts and avoiding new credit inquiries within 6 months of applying for a mortgage.
- Shop mortgage rates from major banks, credit unions, mortgage brokers and online providers. Brokerages can access many lenders.
- Consider switching lenders at renewal time if your current lender won’t match better offers. Most provinces don’t charge switching penalties.
- Get a pre-approval to lock in a competitive rate for 60-120 days while house hunting. But apply only within the window you plan to buy to avoid extra credit hits.
- Work with a mortgage broker to source ideal options for your financial situation and get expert advice for free.
Explore mortgage rates in other regions in Canada:
FAQs on Mortgage Rates in British Columbia
What is considered a good mortgage rate in BC right now?
For May 2025, insured fixed rates below 3.75% and uninsured fixed rates below 4% are generally considered good deals. Variable rates below 3% remain competitive. Always compare options.
Will mortgage rates decrease further in 2025?
Further cuts are possible, but the Bank of Canada may keep rates steady in the coming months. Fixed rates are expected to remain around current levels absent sustained declines in bond yields.
How long can you lock in a mortgage rate in BC?
BC lenders typically offer rate holds between 30 days and 120 days on mortgage pre-approvals. Locking in helps secure a low rate while house shopping.
Can you get a 30-year amortization mortgage in BC?
Yes, new federal rules now allow both first-time buyers and repeat buyers to qualify for 30-year amortizations if putting less than 20% down, making monthly payments more affordable.
The Bottom Line
Finding the best possible mortgage rate involves researching options from various lenders and improving your financial credentials, especially your credit score. Work with a knowledgeable broker and utilize available first-time homebuyer incentives. Rates are projected to remain relatively low through 2025, so it’s an opportune time to explore financing or refinancing your BC home purchase.