BC Mortgage Rates
B.C. mortgage rate update: May 2026
In May, the mortgage market in B.C. will be the tale of two rate types.
Variable mortgage rates should remain relatively affordable after the Bank of Canada held its overnight rate at 2.25% on April 29, 2026. Since the overnight rate directly affects variable rates, they’ll stay at their current levels until the Bank announces either a hike or cut.
The Bank’s next rate announcement is scheduled for June 10. A rate hike could be in store if inflation ramps up and seems lasting. That makes choosing a variable rate somewhat risky, but it would still take multiple rate hikes for variables to become as high as today’s best fixed rates.
Fixed mortgage rates are where the real uncertainty lies.
Government bond yields remain elevated due to the Iran war’s impact on oil prices and inflation. This matters because lenders use yields to price their fixed rates.
The war could shift from stalemate to active conflict at any minute. If hostilities further damage energy infrastructure or destabilize the global supply chain, yields could spike and take fixed rates with them.
All of this adds up to a queasy situation for home buyers in B.C. In times like these, it’s imperative to speak to a mortgage professional (or two) to weigh all of your options.
2026 mortgage rate forecast
Variable rates
Variable mortgage rates weren't forecasted to move in 2026, but the war in Iran has changed the game.
By driving up oil prices and inflation expectations, the Bank of Canada has warned that higher rates may be needed to keep inflation near its 2% target.
If the Bank increases its overnight rate, variable mortgage rates will follow suit. That could happen as early as this summer.
If the Canadian economy falters, the Bank may be compelled to deliver a rate cut at some point. But it's hard to picture a rate cut coming just if inflation's about to spike.
Fixed rates
As of May 2026, fixed mortgage rates have already risen considerably due to rapid increases in government bond yields. (Lenders use bond yields to price their fixed rates.) Yields skyrocketed after the war in Iran caused oil prices to spike, raising fears of inflation and future Bank of Canada rate increases.
Predicting where fixed rates head in the coming months depends heavily on the war in Iran. If it wraps up without further damage being done to oil and food supplies, bond yields should recede and take fixed mortgage rates with them. If the war escalates and worsens the global financial outlook, yields and fixed rates could increase even further.
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 May 2026 some mortgage brokers in B.C. are offering fixed rates for around 3.9%. Variable rates can be found for around 3.4% 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
April 2026 was another below-average month for the B.C. housing market. Home sales were down 1.1% from March and 1.9% lower year-over-year. Year-to-date, sales were 8.4% lower than in the first four months of 2025.
The muted market activity barely put a dent in the number of homes for sale in the province. At the end of April, active inventory stood at over 43,120, only 1.1% lower than a year before.
The elevated supply is having a predictable effect on prices. On a monthly basis, the benchmark price of homes dipped in most areas, most notably in the Lower Mainland and Greater Vancouver, B.C.’s two most expensive markets.
Despite falling by almost 7% year-over-year, the benchmark price in both regions remains over $1 million.
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.
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Connect with Homewise to get a renewal rate quote that's personalized to you.Frequently asked questions
Will mortgage rates come down in 2026?
Not if the war in Iran continues. Prior to the war, the Bank of Canada wasn't expected to touch its overnight rate for most of the year. Now there's a risk of multiple rate hikes, which would increase variable mortgage rates. Fixed mortgage rates have already risen due to the war, and may rise even further.
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.?
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