Overview
Vancouver mortgage rates in August 2025 are showing signs of continued easing, with fixed rates generally lower than variable rates. The highly competitive market, combined with recent Bank of Canada rate cuts, has made home financing somewhat more affordable, though Vancouver remains one of Canada’s priciest cities for homeownership.
Current Vancouver Mortgage Rates
Fixed vs. Variable Rates
| Term | Fixed Rate | Variable Rate | Provider/Notes |
|---|
| 1 Year | 4.79% | — | Canadian lender |
| 2 Year | 4.29% | — | Canadian lender |
| 3 Year | 3.69% | — | Big 6 Bank |
| 3 Year | 4.54% | — | RBC Special Offer |
| 3 Year | 4.77% | 5.50% | National average |
| 4 Year | 4.29% | — | Canadian lender |
| 5 Year | 4.04% | — | Canadian lender |
| 5 Year | 4.69% | 4.55% (Prime-0.40%) | RBC |
| 5 Year | 4.71% | — | National average |
| 5 Year | — | 4.95% (Homeprime) | Vancity |
| 5 Year | 4.50% | — | Vancity Homeprime fixed-term |
- Fixed rates have fallen below variable rates in most cases due to lower bond yields and Bank of Canada rate cuts.
- Variable rates remain tied to prime rates, which, while lower than in recent years, are still above current fixed rates.
Market Conditions
- The Bank of Canada’s overnight rate is currently 2.75% following seven consecutive rate cuts and three holds.
- Inflation is at 1.6%, below the 2% target, providing room for further rate reductions in the coming year.
- Home prices in Vancouver remain high; average prices are around $1,175,000, with a minimum down payment of $235,000 for a typical home.
Major Bank & Lender Offerings
Special Promotions
- RBC offers up to $5,700 in value with an eligible mortgage (valid until August 31, 2025).
- Vancity and other credit unions provide open-term and Homeprime products, with rates as low as 4.50% (5-year fixed).
Big 5 Banks
- TD, RBC, and other major banks offer competitive rates, with personalized advice and support for Vancouver borrowers.
- Comparing rates across banks and brokers is strongly recommended to ensure the best deal.
Government Programs & Incentives
National Programs
- First-Time Home Buyer Incentive: Offers shared-equity loans to first-time buyers, reducing monthly payments.
- Home Buyers’ Plan (HBP): Allows withdrawal of up to $35,000 from RRSPs tax-free for a down payment.
- GST/HST New Housing Rebate: Partial rebate of GST/HST paid on new homes.
British Columbia Specific Programs
- BC First-Time Home Buyers’ Program: Reduces or eliminates the property transfer tax for eligible first-time buyers in BC.
- BC Home Owner Grant: Lowers annual property taxes for eligible homeowners.
Provincial Regulation & Vancouver Market Insights
- British Columbia’s lending rules follow federal guidelines but may include additional consumer protections and property transfer tax incentives for certain buyers.
- Vancouver’s market is among Canada’s least affordable: The typical home price-to-income ratio is about 14.5x, much higher than other cities.
- Minimum down payment requirements: 5% on homes up to $500,000, 10% on the portion between $500,000 and $999,999, and 20% on amounts over $1 million.
Rate Comparisons (Table)
| Provider | 5-Year Fixed | 5-Year Variable | Notes |
|---|
| RBC | 4.69% | 4.55% | Special offer |
| Vancity | 4.50% | 4.95% | Homeprime rates |
| Ratehub.ca | 4.04% | — | Best available |
| National Avg | 4.71% | 5.50% | Conventional |
Recommendations & Next Steps
- Compare rates from multiple providers to secure the best deal; use a reliable platform to simplify this process.
- Consider fixed rates for stability, especially as they are currently lower than variable rates.
- Review eligibility for federal and provincial programs to maximize savings, particularly if you are a first-time homebuyer.
- Consult with a local mortgage specialist or broker for tailored advice, factoring in your financial situation and goals.
- Start your mortgage application with theratefinder, a comprehensive platform for Canadians to compare residential, commercial, and construction mortgages from top lenders. Their multi-step process streamlines finding competitive rates and personalized solutions. Begin your application at theratefinder.ca/onboarding/email.
Summary
Vancouver mortgage rates are competitive in August 2025, with fixed rates generally lower than variable rates due to recent economic trends. Homeownership remains a significant financial commitment in Vancouver, so comparing offers and leveraging government programs is crucial. For a personalized solution and to access the most competitive rates, begin your mortgage application with theratefinder.