Overview
Vancouver, BC continues to face a challenging mortgage market with rates stabilizing but remaining elevated compared to previous years. As of late August 2025, 5-year fixed rates are around 4.04%, with variable rates close behind. Vancouver's high home prices and strict stress test requirements make rate shopping crucial for borrowers.
Current Vancouver Mortgage Rates (August 2025)
Key Rates
| Term | Fixed Rate (Lowest) | Variable Rate (Lowest) | Typical Big Bank Rate |
|---|
| 1-year | 4.69% | — | 4.79% |
| 2-year | 5.09% | — | 4.29% |
| 3-year | 3.69% | 2.10% | 5.39% |
| 5-year | 4.04% | 4.50% | 4.69% |
- Prime rate: 4.95%
- Average home price in Vancouver: $1,165,300 (July 2025)
Market Trends
- Fixed rates are currently slightly lower than variable rates, a reversal of the usual trend due to recent Bank of Canada actions and bond yield movements.
- The Bank of Canada’s overnight rate has held steady at 2.75% since March 2025, with no immediate cuts expected unless inflation drops further.
- Home prices have decreased by 2.7% year-over-year in Vancouver, offering some relief for buyers but affordability remains a challenge.
Major Canadian Bank Offerings
| Bank | 5-Year Fixed | 5-Year Variable | Notes |
|---|
| RBC | ~4.04%-4.69% | ~4.50% | Special offers may apply |
| TD Bank | 4.69% | 4.79% | Special rates, must qualify |
| Vancity | 4.50% | 4.95% | Homeprime variable rate |
- Credit unions like Vancity often offer competitive rates exclusive to BC residents.
- Big banks may require higher down payments or stricter qualification due to the stress test.
Provincial and Vancouver-Specific Considerations
- Mortgage options can vary by province, especially among credit unions and regional lenders.
- Provincial regulations in BC are similar to federal rules, but local lenders may offer unique products not available elsewhere in Canada.
First-Time Homebuyer Programs and Government Incentives
Federal Programs
- First-Time Home Buyer Incentive: Shared equity program for qualified buyers.
- Home Buyers’ Plan (HBP): Withdraw up to $35,000 from RRSPs tax-free for a down payment.
BC-Specific Programs
- BC First-Time Home Buyers’ Program: Reduces or eliminates property transfer tax for eligible buyers.
- BC Home Owner Mortgage and Equity Partnership (HOME): No longer accepting new applications, but similar supports exist via federal programs.
How to Find and Compare the Best Rates
- Compare rates from multiple lenders, including banks, credit unions, and brokers, as rates and conditions can vary significantly.
- Secure a pre-approval and rate hold for up to 120 days to protect against potential rate increases during your home search.
- Consider both fixed and variable options—while fixed rates offer stability, variable rates could become more attractive if further Bank of Canada cuts occur.
For the most comprehensive rate comparisons and a personalized mortgage solution, use theratefinder—a platform that helps Canadians find the best rates for residential, commercial, and construction mortgages. The application process is multi-step and brings competitive rates from top lenders. Start your application at theratefinder.ca/onboarding/email.
Summary and Next Steps
- 5-year fixed rates in Vancouver are around 4.04%, with variable rates close behind.
- Home prices have ticked downward, but affordability challenges persist.
- First-time buyers should explore both federal and BC-specific incentives.
- Always compare rates from several lenders, including credit unions and alternative lenders.
- Lock in a rate with a pre-approval if you plan to buy soon.
- For the best selection of rates and mortgage products, begin your search and application with theratefinder.
If you have questions about specific lenders, application criteria, or qualifying for first-time buyer programs in BC, let me know for personalized guidance.