BC Mortgage Rates
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B.C. mortgage rate update: December 2025
December should be a month of stability for mortgage rates in B.C.
On December 10, the Bank of Canada will announce its next overnight rate decision, which could directly impact variable mortgage rates. With the Canadian economy showing signs of resilience, the Bank is widely expected to hold the overnight rate at 2.25%.
If the Bank holds, variable mortgage rates will stay at their current levels until at least January 28, 2026, when the Bank is scheduled to make its first rate decision of next year.
Until then, the lowest variable mortgage rates in B.C. will hover around 3.5%.
Fixed mortgage rates aren’t likely to move much this month, either. Government bond yields, which determine fixed rates, haven’t shifted much in the last several weeks. Without a sustained rise or fall in bond yields, there’s no reason for lenders to significantly adjust their fixed rates.
Unless the bottom drops out of the economy, the lowest fixed rates in B.C. should hover around 3.7% for the rest of the year.
Read more about the Bank of Canada's latest rate announcement.
The BoC makes policy interest rate announcements eight times a year. Find out how its latest decision might impact Canada's housing market.
What’s a good mortgage rate in B.C. right now?
As of December 2025, some mortgage brokers in B.C. are offering fixed rates below 3.7%. Variable rates can be found for around 3.5% at some brokers and direct lenders.
The rate offers you receive depend on factors like your credit score, total debt level and income, and whether you apply at a major bank or through a mortgage broker.
B.C. housing market update
B.C. home sales dropped 10.2% in October compared to October 2024, according to the British Columbia Real Estate Association. The year-over-year average price was relatively stable, up 0.8% to $978,658.
“We expect demand to steadily enter the market as interest rates fall, driving a stronger final quarter of the year.” BCREA Chief Economist Brendon Ogmundson wrote in a press release.
B.C. home buyer resources
B.C. first-time home buyer programs
If you’re a first-time home buyer in B.C., you may qualify for programs, including:
First-Time Home Buyers’ Program: This program can cut up to $8,000 from the land transfer tax owed on houses valued at $500,000 or less.
Home Owner Grant: Reduce your property taxes if the home is your principal residence. This program isn’t limited to only first-time home buyers.
Newly Built Home Exemption: The exemption reduces property transfer taxes on newly built homes worth less than $800,000.
Land transfer taxes in B.C.
British Columbia's tiered-rate system means more expensive homes result in a higher rate.
- 1% of the first $200,000 of your home's value.
- 2% of any amount between $200,001 and $2,000,000.
- 3% of any amount greater than $2,000,000.
- An additional 2% on residential property over $3,000,000.
Mortgage calculators
Frequently asked questions
Will mortgage rates come down in 2025?
Will mortgage rates come down in 2025?
The Bank of Canada overnight rate was cut in October. If the bank lowers the rate again on December 10, lower variable mortgage rates will follow. Fixed mortgage rates will likely continue hovering between 3.75% and 4.25% well into 2026.
How do B.C. lenders determine mortgage rates?
How do B.C. lenders determine mortgage rates?
The mortgage rate you’re offered by a lender in British Columbia will be based on two primary factors; one based on the state of the economy and one based on your financial situation.
Economic factors Variable mortgage rates are influenced by the Bank of Canada’s overnight rate. When the overnight rate increases or decreases, a lender’s prime rate follows suit. Variable mortgage rates are based on a lender’s prime rate, so as the prime rate rises or falls, so do variable rates.
Fixed mortgage rates are determined by activity in the government bond market, particularly the yields on one-, three- and five-year bonds. Fixed mortgage rates follow the movement of those yields.
Your financial situation
Factors specific to you also affect the rates you’re offered. These include:
Lenders look for signs of risk when assessing these aspects of your finances. The riskier they perceive you to be as a borrower, the higher the rate they’re likely to offer you.
How can I qualify for a lower mortgage rate in B.C.?
How can I qualify for a lower mortgage rate in B.C.?
Some factors behind rates are beyond your control, but there are steps you can take to encourage lenders to offer you the best mortgage rates. For example, you can:
Sources
NerdWallet writers are subject matter authorities who use primary, trustworthy sources to inform their work, including peer-reviewed studies, government websites, academic research and interviews with industry experts. All content is fact-checked for accuracy, timeliness and relevance. You can learn more about NerdWallet's high standards for journalism by reading our editorial guidelines.
- B.C. Government. First time home buyers' program. Accessed Dec 9, 2024.
- B.C. Government. Home Owner Grant. Accessed Dec 9, 2024.
- B.C. Government. Newly built home exemption. Accessed Dec 9, 2024.
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Clay Jarvis
Clay Jarvis