Best mortgage rates in Vancouver
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Common mortgage questions
Vancouver is a major city in western Canada, and is considered one of the most expensive cities in Canada and the world, when it comes to housing affordability. It is ranked as one of the world’s most livable cities, as it has tons of scenic locations, great weather and is perfect for those who love to be surrounded by nature. Vancouver also has the highest population density in Canada and is known to be one of the most ethnically and linguistically diverse cities.
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What factors impact my mortgage rate in Vancouver, British Columbia?
Most people are motivated to seek out the lowest mortgage rate possible when shopping around for offers. While the difference between rates may only be a fraction of a percent and sound negligible, this can translate into thousands of dollars in savings over the lifetime of your mortgage loan.
The mortgage rates offered to you by a lender are dependent on a number of factors, such as the purchase price, your down payment, amortization and your credit score. Lenders use this information to assess how likely you are to repay your mortgage loan.
The purchase price and your down payment will determine how much you need to borrow, which in turn impacts your mortgage payment. You can see the effect of your down payment amount and mortgage rates on our rates page.
The mortgage amortization is the period of time over which your mortgage will be paid off. The longer the amortization period, the more interest you’ll pay on the loan. The most common amortization period in Vancouver, British Columbia is 25 years. The most common mortgage term is five years.
Your credit score is used to assess your creditworthiness, in other words, how risky it would be for a lender to lend you money. Your credit score changes over time, as your credit report gets updated. Those who can manage credit responsibly and make their loan payments have a higher score. In general, you are more likely to get a lower mortgage rate if you have a higher credit score. Those with lower credit scores tend to receive higher rates.
The mortgage rates offered to you by a lender are dependent on a number of factors, such as the purchase price, your down payment, amortization and your credit score. Lenders use this information to assess how likely you are to repay your mortgage loan.
The purchase price and your down payment will determine how much you need to borrow, which in turn impacts your mortgage payment. You can see the effect of your down payment amount and mortgage rates on our rates page.
The mortgage amortization is the period of time over which your mortgage will be paid off. The longer the amortization period, the more interest you’ll pay on the loan. The most common amortization period in Vancouver, British Columbia is 25 years. The most common mortgage term is five years.
Your credit score is used to assess your creditworthiness, in other words, how risky it would be for a lender to lend you money. Your credit score changes over time, as your credit report gets updated. Those who can manage credit responsibly and make their loan payments have a higher score. In general, you are more likely to get a lower mortgage rate if you have a higher credit score. Those with lower credit scores tend to receive higher rates.
Do mortgage rates vary based on whether I'm buying a home, renewing, or refinancing?
Whether you’re buying a home, renewing or refinancing in Vancouver, British Columbia, mortgage lenders typically don’t care about the mortgage transaction type. The main factors that impact your mortgage rate will be the purchase price, your down payment, amortization and your credit score.
Do mortgage rates change depending on my location?
British Columbia residents are always looking for the best mortgage rates. The rates you’re offered can vary, as some areas will have more competition among lenders, which can benefit you as the customer. If there are many banks, brokers and credit unions offering mortgages in your area, this could result in slightly lower rates. Mortgage rates can also be impacted by housing demand in a particular region. Regardless of where you live in Canada, Perch can help find the best mortgage offer for you.
What does it mean to renew a mortgage?
When you initially get a mortgage in Vancouver, British Columbia, you are committing to a mortgage term. This mortgage term can vary in length — anywhere from a few months to five years, or longer. When your mortgage term comes to an end, you can choose to renew your mortgage with the same lender, renew with a different lender offering more favourable terms, or pay your mortgage off in full.
It’s best to shop around a few months before your mortgage renewal, and see what other lenders can offer. You don’t have to wait until you receive a renewal letter from your lender to see what other mortgage options are available.
It’s best to shop around a few months before your mortgage renewal, and see what other lenders can offer. You don’t have to wait until you receive a renewal letter from your lender to see what other mortgage options are available.
What does it mean to refinance a mortgage?
A mortgage refinance is when you are breaking your current mortgage and starting a new mortgage, either with the same lender or a different one. Refinancing can help you take advantage of a better mortgage offer, unlock equity in your home, or to consolidate your debt. When you refinance, you will need to pay penalties (fees) to break your mortgage. The penalties will vary based on the lender, so it’s important to understand how to calculate these fees before you move forward. From there, you can make an informed decision whether it’s financially beneficial for you to refinance.
Perch can help you decide if it makes sense to refinance your mortgage in Vancouver, British Columbia. Our mortgage penalty calculator helps you calculate the costs of breaking your mortgage. When you set up an account with Perch, we’ll automatically monitor the mortgage market and let you know when there’s an opportunity to save money by switching mortgages. Perch can calculate the difference between your mortgage penalty costs and the amount of money you could save with a lower mortgage rate, and tell you exactly how much money you can get back.
How long does it take to apply for a mortgage?
People who are applying for a mortgage may be wondering how long it will take to hear back from a lender, and what factors could delay their application process.
This is what a typical mortgage application process looks like:
- Your mortgage advisor will review your situation and discuss what mortgage options make the most sense for you. Ideally, you’ve already gotten pre-approved, so they’re familiar with your preferences.
- The mortgage advisor will submit your application to the lender.
- The lender reviews your deal and issues a commitment letter, which outlines what conditions need to be met for you to get a mortgage. If your application is rejected, you will need to either revise your application or go to a different lender.
- The mortgage advisor will work with you to collect any additional documents to meet the mortgage commitment conditions in advance of your closing date. To be safe, you’ll want to fulfill all conditions at least 10 days prior to closing.
- Once the mortgage conditions are met, the lender will then send the mortgage instructions to your real estate lawyer.
How do I decide if a fixed or variable rate mortgage is right for me?
Typically, a fixed rate mortgage will have higher rates than a variable, since you are paying a slight premium for predictability. Here are some questions to help you decide if you should go with a fixed or variable rate mortgage:
- Do you see yourself selling your property or otherwise breaking your mortgage during the length of your current term? If the answer is yes, you may want to go with a variable rate to avoid the higher mortgage break penalty fees that come with a fixed rate mortgage.
- Do you believe the Bank of Canada will set rates lower during the length of your mortgage term? If the answer is yes, you may want to go with a variable rate and have the option of locking in to a fixed rate later.
- Are you comfortable with fluctuations in your mortgage rate? If the answer is yes, you may want to go with a variable rate in order to maintain flexibility. While your monthly mortgage payment amount stays the same, you could have more or less of your payment go towards your mortgage principal when rates change.
Does a variable rate mortgage make it harder to budget each month?
While a variable rate mortgage may sound unpredictable and uncertain, the monthly mortgage payment amount does not change even if the rate increases or decreases. When the rate fluctuates, it impacts how much of your monthly payment goes towards paying off the mortgage principal or the interest. However, the payment amount itself stays the same.
Which bank has the best mortgage rates in Vancouver?
There is no specific bank that has the best mortgage rates in Vancouver. When looking for mortgage rates in Vancouver, it’s best to compare rates and shop around. Consult your mortgage advisor to help you find a rate that’s best suited for you.
How do interest rate hikes affect my mortgage payment in Vancouver?
Homeowners with a variable rate mortgage are the only ones directly impacted when the Bank of Canada increases its lending rates (which in turn influences banks to increase their Prime Rate). That’s because with a variable rate, you lock in a spread (example: Prime – 1.00%) and not an actual rate. Although variable rates have been historically lower than fixed, you would need to ensure you are able to cover higher payments if rates rise.
Vancouver homeowners also have the option to renew their mortgage into a fixed or variable rate at or before your renewal date. This may involve breaking your mortgage term prior to renewal and paying a penalty, however in some cases, can still save hundreds or thousands in interest costs.
Vancouver homeowners also have the option to renew their mortgage into a fixed or variable rate at or before your renewal date. This may involve breaking your mortgage term prior to renewal and paying a penalty, however in some cases, can still save hundreds or thousands in interest costs.
Who are the popular mortgage lenders in Vancouver?
There are several mortgage lenders in Vancouver and it’s best to compare rates from several lenders before deciding on one. Some lenders included are:
- RBC
- TD Bank
- Scotiabank
- BMO
- CIBC
- National Bank
- HSBC
- First National
Are Vancouver mortgages affordable?
Vancouver mortgages are becoming less and less affordable with the housing marketing prices rising in Vancouver and the Greater Vancouver area. This is especially so for first time home buyers who don’t have existing equity. The average house price in Vancouver is about $1,175,000 with the average household income being $81,000, resulting in the average house price being 14.5 times more than the average household income. Below is a chart on Vancouver housing affordability:
| Type of Home | Average Price (June 2021) | Minimum Down Payment (On Average Price) | Average Home Price Compared To Median Income |
|---|---|---|---|
| Detached Home | $1,801,100 | $360,220 | 22x |
| Townhouse | $946,900 | $69,692 | 11.5x |
| Condo Apartment | $727,600 | $47,731 | 9x |
Where in Vancouver are homes more affordable?
Although home prices in the city of Vancouver are quite high, there are other cities throughout the Greater Vancouver Area that might be more affordable and within your budget.
Some cities to check out are:
Some cities to check out are:
- Burnaby
The benchmark average home price in Burnaby is $800,000 as of June 2021, compared to the Vancouver area average of $1,175,000. - Richmond
The average home price in Richmond is $923,000 as of June 2021 but has more homes below $1,000,000 in purchase price. This means you will need a lower down payment with only $67,300 required compared to $235,000 required for the Vancouver area. - Coquitlam & Port Coquitlam
The average home price in Coquitlam & Port Coquitlam is $843,000 and $790,900 as of June 2021, which are fairly more affordable for first time home buyers compared to the Greater Vancouver area. - Maple Ridge
Maple Ridge is far from the Greater Vancouver area but offers some of the lowest average home prices, being $682,800. This means you will only require a down payment of $43,300. - Port Moody
The average home price in Port Moody is $751,900 and will require a minimum down payment of $50,300, which is much more affordable compared to the Greater Vancouver area.
How are Vancouver mortgage rates compared to Toronto mortgage rates?
Vancouver is the largest city in British Columbia and one of the largest cities in Canada. Similar to mortgage lenders in Toronto, many Vancouver mortgage lenders must compete in order to get your business. The average home price in Vancouver is $1,175,000 while Toronto’s is $,1,080,000, which means mortgage rates and required amounts are similar between the two cities. The major difference between the cities will be the lenders, as one lender in Vancouver might not offer mortgage rates in Toronto or the same rate.
Compare mortgage rates in a click
Perch makes it easy to find the best mortgage rates in Vancouver. Our rates are updated daily, to ensure you have the most current information.
Vancouver real estate market trends and historical rates
Vancouver has the highest priced housing market in Canada and some of the biggest mortgages in the country. Competition is high for lenders and mortgage brokers and because of the city’s high home prices and high net worths, loan amounts are much higher compared to other cities.
See below for a chart of Vancouver historical mortgage rates:
| Year | Vancouver 5-year Fixed |
Canada 5-year Fixed |
Vancouver Variable |
Canada Variable |
|---|---|---|---|---|
| 2016 | 2.31% | 2.51% | 1.95% | 1.97% |
| 2017 | 2.84% | 2.84% | 2.12% | 2.34% |
| 2018 | 2.39% | 3.50% | 2.76% | 2.76% |
| 2019 | 2.66% | 2.66% | 2.82% | 2.80% |
| 2020 | 1.49% | 1.49% | 1.17% | 1.17% |
B2B Bank
CMLS Financial
Canadian Western Bank
DUCA
Equitable Bank
First National
Home Trust
ICICI
Lendwise
Manulife
MCAP
MERIX Financial
Radius Financial
RFA
RMG Mortgages
Scotiabank
Strive Financial
TD Bank
XMC Mortgage Corporation
What users are saying on 
“I used Perch to help me finance my investment property. Not only was I able to get the lowest rates with Perch, I was able to get connected with an incredibly knowledgeable real estate agent, collect and submit all my supporting documents electronically, and track the progress of my mortgage application throughout the entire process using my Perch dashboard. Highly recommend to anyone looking to get competitive rates and values transparency throughout their entire mortgage experience.”
“We just bought our first home and we're so glad we used Perch. I didn't know the first thing about getting a mortgage before we started the process, but Perch made everything clear and easy! It was really nice to be able to do everything online since we have a very busy schedule and not much time to be meeting with brokers or bringing in documents constantly. Will definitely recommend Perch to friends! 🙂”
“Alex is the Mortgage Guru. He helped me through every step of the way and I could trust him with every aspect of my home purchase. He also got me the best rate, which has saved lots of money in the long run. Would DEFINITELY recommend! Thanks for everything.”
“Perch was so key in helping us buy our first home! The support and service was there every step of the way, the site made everything easier to understand and being able to do everything online was amazing! We recommend this to all our friends.”
“Perch got us a great interest rate when buying our new house this summer! It was me and my husband’s first time buying and selling at the same time, and Perch was extremely helpful in navigating that process. When I was looking to buy my first home a few years ago, I started out working directly with a bank, and they took forever to answer my questions and get me approved. It was night and day this time. Perch’s rates and customer service were amazing. Will definitely use them for our next move!”
“Perch is the only place I'd recommend for anyone's mortgage needs. The platform developed makes the whole process a breeze to follow from start to end; I expected the nightmare of all first time homebuyers before me but never felt the pain and agony I braced myself for. Thank you Alex for looking after us throughout the process and making sure we got the best option possible!”
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