Overview
Vancouver continues to be one of Canada’s most dynamic and expensive housing markets, with mortgage rates closely reflecting national trends and the local market’s unique characteristics. Homebuyers in Vancouver can access a variety of competitive mortgage options from major banks, credit unions, and mortgage brokers.
Current Mortgage Rates in Vancouver
Fixed vs. Variable Rates
- Fixed rates in Vancouver are currently slightly lower than variable rates, reversing the historical norm due to recent trends in bond yields and Bank of Canada policy.
- 5-year fixed rates remain the most popular choice among Vancouver homebuyers for their stability and predictability.
Latest Available Rates (as of July 2025)
| Mortgage Type | Rate (Lowest) | Provider/Commentary |
|---|
| 5-Year Fixed | 4.49% | Multiple lenders, including RBC |
| 5-Year Variable | 5.45% | Multiple lenders |
| 3-Year Fixed | 4.44% | RBC Royal Bank |
| 2-Year Fixed | 4.24% | Select Canadian lenders |
| 1-Year Fixed | 4.99% | Select Canadian lenders |
| Homeprime Variable | 4.95% | Vancity |
- RBC offers a 5-year fixed special at 4.49% and a 5-year variable at 4.55% (prime - 0.40%).
- Vancity’s Homeprime variable stands at 4.95%, with fixed-term options available.
Historical Rate Trends
- In August 2024, fixed rates averaged 4.59% and variable rates 4.75%; now, fixed rates are generally lower than variable, a trend that could continue if the Bank of Canada cuts rates further as inflation remains below 2%.
- Bond yields, which influence fixed rates, have contributed to fixed rates being more attractive recently.
Vancouver Mortgage Market Conditions
- Affordability remains a major challenge: The average home price in Vancouver is around $1.18 million, approximately 14.5 times the median household income.
- Down payments: Buyers typically need at least 20% ($235,000 on average) to avoid CMHC insurance and access the best rates.
- Market activity: Rate trends and affordability pressures continue to impact buyer behaviour, with many seeking stable payments through fixed-rate mortgages.
Canadian Government Programs & Incentives
- First-Time Home Buyer Incentive: Shared equity mortgage with the government to reduce monthly payments.
- Home Buyers’ Plan (HBP): Withdraw up to $35,000 from RRSPs for a down payment.
- GST/HST New Housing Rebate: Partial refund of GST/HST for new home purchases or substantial renovations.
- BC-specific programs: No current provincial first-time buyer loan, but property transfer tax exemptions exist for qualifying first-time buyers.
Major Canadian Bank Offerings
| Bank | 5-Year Fixed | 5-Year Variable | Special Offers |
|---|
| RBC | 4.49% | 4.55% (Prime - 0.40%) | Up to $5,700 in value with eligible mortgage |
| TD Canada Trust | Competitive (contact for best rate) | Variable tied to TD Prime (5.10% as of April 2024) | Personalized advice available |
| Vancity | 4.55% (Homeprime fixed-term) | 4.95% (Homeprime) | Must have 20%+ down payment, owner-occupied |
- All major banks and credit unions require applicants to meet federal stress test requirements.
Provincial Considerations
- British Columbia has unique property transfer taxes and offers exemptions for first-time buyers up to certain price thresholds.
- Mortgage regulations are federally set, but some local lenders (e.g., Vancity) offer products tailored to the BC market.
First-Time Homebuyer Programs (BC & Canada)
- Property Transfer Tax First-Time Home Buyers’ Exemption: Purchases under $500,000 fully exempt; partial exemption up to $525,000.
- First-Time Home Buyer Incentive and HBP: Available nationwide.
- BC Home Owner Mortgage and Equity Partnership: No longer available, but incentives may change—check for current programs regularly.
Rate Comparison Table
| Lender/Provider | 5-Year Fixed | 5-Year Variable | Special Conditions |
|---|
| RBC | 4.49% | 4.55% | Up to $5,700 in value |
| Vancity | 4.55% | 4.95% | 20%+ down, owner-occupied |
| Generic Lender | 4.49% | 5.45% | Lowest advertised rates |
| Big 6 Bank | ~3.89%-4.49% | 5.45% | Varies by applicant |
Recommendations & Next Steps
- Compare offers from multiple lenders: Rates and terms can vary based on your profile and down payment.
- Consider your risk tolerance: Fixed rates offer stability, while variable can benefit if Bank of Canada rates drop.
- Ensure you qualify for government or provincial incentives to reduce upfront costs.
- Use a comprehensive platform like theratefinder to compare rates from top Canadian lenders and access a multi-step application process for residential, commercial, and construction mortgages. Start your application at theratefinder.ca/onboarding for a customized solution.
Summary
Vancouver mortgage rates are currently most competitive for 5-year fixed terms, with rates around 4.49–4.55% from major lenders. Variable rates are presently higher but could become more attractive if the Bank of Canada cuts rates further in 2025. Affordability remains a challenge, but various federal and provincial programs can help reduce upfront costs for first-time buyers. For the best rates and most suitable mortgage options, use comparison platforms like theratefinder to ensure you secure the most competitive mortgage tailored to your needs.