Best Mortgage Rates in Vancouver
If you’re looking for the best mortgage rates in Vancouver, it can be overwhelming to understand not just the rates but also how rates impact the type of mortgage you choose. Also, with the cost of homes in Vancouver still proving to be some of the highest in Canada, you want to ensure you find the best mortgage rates and terms possible to pay down your mortgage as soon as possible. Here we compare Vancouver mortgage rates to make the process easier.
BMO 5-year Fixed Mortgage Rate
Rate Type5-Year-Fixed
Mortgage TypeClosed
Prepayment 20%
5.64%
HSBC 3-year Fixed Mortgage Rate
Rate Type3-Year-Fixed
Mortgage TypeClosed
Prepayment 15%
6.09%
5.59%
CIBC 5-year Variable Mortgage Rate
Rate Type5-Year-Variable
Mortgage TypeClosed
Prepayment 20%
6.70%
5 Year Fixed Rate
(High Ratio)
Rate Type 5-Year-Fixed
Mortgage TypeClosed
Prepayment 15%
4.69%
3 Year Variable Rate
(High Ratio)
Rate Type 3-Year-Variable
Mortgage TypeClosed
Prepayment 20%
6.15%
5 Year Variable Rate
(High Ratio)
Rate Type 5-Year-Variable
Mortgage TypeClosed
Prepayment 15%
6.05%
About Vancouver
Vancouver is like the Gold Coast of Canada, with the sandy beaches of English Bay and surprisingly mild winters that see very little snow. It also offers stunning views of the Pacific Ocean as well as the North Shore Mountains and is ranked as the fifth best city to live in the world based on a recent Mercer’s Quality of Living study. Vancouver is home to about 2.6 million people drawn to its mild weather and spectacular skyline. Home to one of the largest urban parks in the world, Stanley Park, its lovely coastline and nearby mountains offer hours of activities from water sports to skiing.
Vancouver offers something for everyone, as a bustling city filled with ample dining experiences and vibrant night life. The greater Vancouver area includes Surrey, Burnaby, Richmond, Coquitlam, Langley, Delta, North Vancouver, Maple Ridge, New Westminster, and West Vancouver, where most of the population live due to limited space in the downtown core. Its famous SkyTrain is part of a convenient public transit system that makes it easy to get around town.
Cost of Living in Vancouver
It’s no secret that Vancouver is one of the most expensive cities in Canada. In fact, the average cost for a single person living in Vancouver is about $1,200 per month, plus $2,169.91 in rent for a one-bedroom apartment. Other costs include:
- Phone plans: $75 per month
- Transportation: $93 per month.
- Groceries: $315 per month
The Vancouver Mortgage Market
Luckily, the Bank of Canada finally paused mortgage rate hikes which helped improve activity on the real estate market. However, this pause is not necessarily an end to increases. It is unlikely Vancouver will see any rate cuts, with rate hikes more likely as we enter the next quarter.
Vancouver Mortgages And Housing
Effective as of January 1, 2023, BC homebuyers have three days to back out of a home purchase after the sale. The buyer has to pay a quarter of a percent of the purchase price to do so. This allows buyers to take care of home inspections and get their finances in order before making a final commitment to purchase the home. However, it also provides a cooling-off period for buyers to reconsider the cost and ensure they understand what the purchase means to their finances. Vancouver housing prices have been sky-high for years, and despite prices leveling off somewhat, inflation continues to put upward pressure on mortgage rates.
Here is a breakdown of Vancouver housing prices:
- Average home price $1,220,469
- Benchmark price $1,123,400
- Detached home benchmark price $1.81M
- Townhouse benchmark price $1.04M.
- Condo apartment benchmark price $732k
Vancouver Mortgage Rate Forecast
The general forecast for mortgage rates in Vancouver is the likelihood of another .25% increase from 4.50% to 4.75% by the time summer arrives.
How Can You Find the Best Mortgage Rate in Vancouver?
The quickest and easiest way to find the best mortgage rates in Vancouver is to work with a mortgage broker. They do all the leg work based on your preferences as well as your financial situation and credit score. You save time on research and also receive an unbiased opinion based on the best rates and terms, as well as an overview of the pros and cons of each option.
Current Mortgage Rates: Fixed and Variable
Here is a look at current mortgage rates in Vancouver:
Insured 80% LTV 65% LTV Uninsured
Fixed
1-year 5.19% 5.59% 5.44% 5.59%
3-year 4.78% 4.84% 4.84% 4.84%
5-year 4.38% 4.68% 4.38% 5.14%
Variable
1-year N/A N/A N/A N/A
3-year 5.60% 6.70% 6.70% 6.70%
5-year 5.44% 5.55% 5.55% 5.62%
Compare Mortgage Rates in Vancouver
Here is a comparison of mortgage rates for Canada’s top five major banks:
1-year Fixed
Lender Insured Uninsured
TD 6.19% 6.19%
BMO 6.19% 6.27%
RBC 6.24% 6.24%
CIBC 6.35% N/A
Scotiabank 6.79% 6.79%
3-year Fixed
Lender Insured Uninsured
BMO 5.22% 5.34%
TD 5.59% 5.62%
RBC 5.70% 5.70%
CIBC 6.24% N/A
Scotiabank 6.44% 6.44%
5-year Fixed
Lender Insured Uninsured
CIBC 5.14% 5.64%
BMO 5.16% 5.28%
TD 5.44% 5.46%
RBC 5.69% 5.69%
Scotiabank 6.34% 6.35%
5-year Variable
Lender Insured Uninsured
BMO 6.39% 6.49%
TD 6.45% N/A
RBC 6.50% 6.50%
CIBC 6.64% 6.70%
Scotiabank 7.15% 7.15%
Historical Mortgage Rates in BC
Here’s a glimpse at historical January fixed mortgage rates in BC over the past five years:
Year Term Rate
2019 1-year 3.64%
3-year 4.29%
5-year 5.34%
2020 1-year 3.64%
3-year 3.94%
5-year 5.19%
2021 1-year 3.09%
3-year 3.49%
5-year 4.79%
2022 1-year 2.79%
3-year 3.49%
5-year 4.79%
2023 1-year 6.34%
3-year 6.14%
5-year 6.49%
Frequently Asked Questions on Mortgages in Vancouver
It just takes one look at the charts above to get a feel for how much you can save by shopping for the best mortgage rates. If we were to compare the 5-year fixed insured mortgage interest rates between the top five banks, the payments would be as follows:
- BMO: $2,953.73/mo
- TD: $3,034.52/mo
- RBC: $3,107.48/mo
- Scotiabank: $3,300.77/mo
That represents a difference of $347.04 per month between the highest and lowest interest rates, or $4,164.48 in savings each year
Prepayment allows you to pay your mortgage down faster without penalty. Prepayment options for the top five banks in BC are as follows:
- RBC Annual Mortgage Prepayment: Prepay up to 10% of the original principal amount.
- CIBC Mortgage Prepayment Allowance: Prepay up to 20% of your original mortgage balance each year.
- BMO Prepayment: Increase your monthly mortgage payment by up to 20%, or up to 10% for a fixed mortgage or make a lump sum payment up to 20% of your original mortgage balance, or up to 10% for fixed mortgages each year.
- Scotiabank’s Annual Mortgage Prepayment: Prepay 15% of your mortgage principal penalty-free.
Annual Mortgage Prepayment: Prepay up to 15% of your original mortgage principal as a lump sum each year.
Not necessarily. Variable rates can be much lower than fixed rates at times, as they change with prime rate trends. However, as we are seeing today, they also increase with prime trends, which will cost you more over the life of your mortgage.
A closed mortgage rate in BC tends to offer lower mortgage rates and therefore is the best option for most homeowners. The main difference between open and closed mortgages is that open mortgages offer more flexibility, allowing you to prepay your mortgage before the term ends.
Yes. A mortgage broker will compare all available mortgages and terms across multiple lenders to find the best option for you.
Best Mortgage Bank Rates in Vancouver
BMO 5-year Fixed Mortgage Rate
Rate Type5-Year-Fixed
Mortgage TypeClosed
Prepayment 20%
5.64%
HSBC 3-year Fixed Mortgage Rate
Rate Type3-Year-Fixed
Mortgage TypeClosed
Prepayment 15%
6.09%
5.59%
CIBC 5-year Variable Mortgage Rate
Rate Type5-Year-Variable
Mortgage TypeClosed
Prepayment 20%
6.70%
Best Mortgage broker Rates in Vancouver
5 Year Fixed Rate
(High Ratio)
Rate Type 5-Year-Fixed
Mortgage TypeClosed
Prepayment 15%
4.69%
3 Year Variable Rate
(High Ratio)
Rate Type 3-Year-Variable
Mortgage TypeClosed
Prepayment 20%
6.15%
5 Year Variable Rate
(High Ratio)
Rate Type 5-Year-Variable
Mortgage TypeClosed
Prepayment 15%
6.05%
Disclaimer
Citadel Mortgages operates an information-based website that displays mortgage rates from its partners. While the company strives to provide the best possible rates, it cannot guarantee their accuracy at all times. Therefore, Citadel Mortgages accepts no liability for the precision of the information presented and is not accountable for any damages resulting from its use. Terms and conditions apply, and it is necessary to speak with a mortgage broker for further details. Please note that the rates displayed in this article are for article use only.
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