BC Mortgage Rates
B.C. mortgage rate update: March 2026
After the Bank of Canada held its overnight rate at 2.25% on March 18, we know that variable mortgage rates in B.C. will continue hovering around their current levels until at least April 29, when the Bank makes its next overnight rate decision.
The mystery is what might happen to fixed rates in the coming weeks.
The Iran war sent government bond yields, which lenders use to price their fixed mortgage rates, flying in the first two weeks of March. In response, several lenders and brokerages increased their three-year fixed rates and five-year fixed rates.
Bond yields peaked on March 12, receded for a few days, and then shot up again after attacks were launched on Iran’s oil and gas infrastructure. Where yields — and fixed rates — go from here is anyone’s guess.
If you’re leaning toward a fixed rate for either a mortgage or renewal, consider getting pre-approved and locking in at today’s rates. If rates increase, you’ll be protected. And you’ll have access to lower rates if they come down.
2026 mortgage rate forecast
Variable rates
Variable mortgage rates aren’t expected to experience much change in 2026, though the war in Iran may change the game.
In December, the Bank of Canada said its overnight rate is at “about the right level” to fight inflation and support the economy, which should rule out any imminent rate cuts or increases.
So long as the Bank maintains its overnight rate, variable mortgage rates won’t budge.
But if the Canadian economy falters, the Bank may be compelled to deliver a rate cut at some point. And if the war in Iran drags on and causes inflation to spike, the Bank may announce a rate hike to tamp down inflation — regardless of the state of the economy.
Fixed rates
As of March 2026, fixed mortgage rates could rise in response 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.
Long-term fixed-rate projections, however, are difficult to make with any accuracy. Bond yields are determined by factors that are hard to predict, like the state of the economy and the expectations of individual investors.
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 March 2026 some mortgage brokers in B.C. are offering fixed rates below 3.7%. 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
February 2026 was another disappointing month for the B.C. housing market. Sales were down 1.9% from January and almost 10% year-over-year. Year-to-date, sales in the province are 15.8% lower than they were in the first two months of 2025, equivalent to 1,471 fewer transactions.
The sluggish sales helped increase the number of homes buyers have to choose from. Active listings, the number of homes still for sale at the end of a month, were up 3.7% year-over-year in February to reach 35,240.
Prices softened in almost every region of the province last month, most notably in Chilliwack, where the benchmark price slid 2.3% versus January. Despite declining by 1.4% month-to-month, the benchmark prices of homes in Greater Vancouver and the Lower Mainland remained 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.
Mortgage calculators
Connect with Homewise to get a rate quote that's personalized to you.
Frequently asked questions
Will mortgage rates come down in 2026?
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?
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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