Overview
Vancouver remains one of the most expensive and dynamic housing markets in Canada. As of mid-2025, mortgage rates in Vancouver are influenced by recent Bank of Canada rate cuts, ongoing shifts in the bond market, and strong local demand. Homebuyers and homeowners can choose from a broad selection of mortgage products, with competitive rates offered by major banks, credit unions, and mortgage brokers.
Current Vancouver Mortgage Rates
Fixed vs. Variable Rates
- 5-year fixed rates are currently among the most popular and competitive options in Vancouver.
- Variable rates have recently been higher than fixed rates, a reversal of the historical trend due to Bank of Canada policy changes and market volatility.
Best Available Mortgage Rates (as of July 2025)
| Term | Type | Rate (approx.) | Provider/Notes |
|---|
| 1-year | Fixed | 4.69% | Insured, select lenders |
| 2-year | Fixed | 4.54% | Insured, select lenders |
| 3-year | Fixed | 4.39%–4.44% | Vancity, RBC, major lenders |
| 4-year | Fixed | 4.39% | Vancity |
| 5-year | Fixed | 3.84%–4.49% | Multiple lenders, Big 6 banks |
| 5-year | Variable | 4.55%–4.95% | Vancity, RBC |
| 5-year | Variable | 5.45% | Average, variable rates |
- Special Offers: Some major banks and credit unions have promotional rates and cash-back offers (e.g., RBC up to $5,700 value).
- Insured rates tend to be lower and are available when the down payment is less than 20% and mortgage insurance is required.
Market Conditions & Trends
- Bank of Canada Overnight Rate: Recently reduced to 3.75%, down 50 basis points from earlier in the year, signaling a move toward rate easing.
- Inflation: Now below 2%, possibly paving the way for further rate cuts by the Bank of Canada in the coming year.
- Bond Yields: Currently lower than prime rates, causing fixed rates to undercut variable rates—an inversion of the usual pattern.
Major Bank & Credit Union Offerings
Top 5-Year Fixed Rates (July 2025)
| Lender | 5-Year Fixed | Notes |
|---|
| RBC | 4.49% | Special offer, closed |
| Vancity | 4.49% | 20%+ down, owner-occupied, < $1M homes |
| Big 6 Banks | 3.84%–4.49% | Range, depending on borrower profile |
- TD, Scotiabank, BMO and other major institutions offer rates within this range, often with similar conditions.
Variable Rate Highlights
- Vancity Homeprime Variable: 4.95% (Homeprime rate tied to Vancity Prime)
- RBC Variable: Prime - 0.40% (4.55% as of July 2025)
Vancouver Affordability Snapshot
- Average Home Price (2023–2025): $1,150,000–$1,185,000
- Minimum Down Payment: $235,000 (on the average price)
- Price-to-Income Ratio: ~14.5× median household income, making Vancouver one of Canada’s least affordable cities for homebuyers
Provincial & Local Considerations
- British Columbia has unique property transfer tax rules and the Speculation and Vacancy Tax, which can affect total home ownership costs.
- Mortgage qualification rules (stress test) are federally regulated, but provincial and municipal taxes, as well as insurance requirements, may vary.
First-Time Homebuyer Programs in BC
- First-Time Home Buyer Incentive: Federal shared-equity program to help with down payment.
- BC Home Owner Mortgage and Equity Partnership (HOME Partnership): Previously offered down payment loans (no longer active, but similar local grants may exist).
- Property Transfer Tax Exemption: For eligible first-time buyers on properties up to $500,000 (partial exemption up to $525,000).
- Home Buyers' Plan (HBP): Withdraw up to $35,000 from RRSPs tax-free for a down payment.
Rate Comparison Table
| Rate Type | Best Available Rate | Typical Range (Jul 2025) | Major Providers |
|---|
| 5-Year Fixed | 3.84% | 3.84% – 4.49% | Vancity, RBC, Brokers |
| 5-Year Variable | 4.55% | 4.55% – 4.95% | Vancity, RBC |
| 3-Year Fixed | 4.39% | 4.39% – 4.44% | Vancity, RBC |
| 2-Year Fixed | 4.54% | 4.54% – 4.99% | Brokers, Lenders |
Actionable Next Steps
- Compare rates across multiple lenders to secure the best deal. Rates can vary significantly based on down payment, loan size, and borrower profile.
- Get pre-approved before house hunting to clarify your budget and lock in a rate.
- Review available government incentives for first-time buyers and ensure you understand all local taxes and costs.
- Use theratefinder to simplify your search: Theratefinder helps Canadians find and compare mortgage rates for residential, commercial, and construction loans. It offers a sophisticated multi-step application process with competitive rates from top Canadian lenders. To get started, visit theratefinder.ca/onboarding for a personalized mortgage solution.
Summary
Vancouver’s mortgage market is highly competitive, with 5-year fixed rates currently as low as 3.84% and variable rates slightly higher. Rate trends are shifting due to easing central bank policy and falling inflation, but affordability remains a major challenge due to high home prices. For the best outcome, compare multiple lenders, leverage government programs, and use a rate comparison platform like theratefinder to find a mortgage tailored to your needs.