BC Mortgage Rates
8Twelve has partnered with over 65 Canadian mortgage lenders to provide competitive rates on over 7,000 mortgage products. 8Twelve can quickly match you with a lender and mortgage type that meets your needs — even if your financial situation is unique.
B.C. mortgage rate update: January 2026
It’s a new year, but for mortgage rates in B.C., 2026 brings more of the same: static variable rates and fixed rates that threaten to edge higher.
Variable rates haven’t moved since the Bank of Canada held its overnight lending rate at 2.25% in December, and they won’t budge until the Bank delivers either a rate cut or rate increase. Neither is expected to happen for most of 2026, so variable rates might be as good as they’re going to get for months.
If the Bank maintains the overnight rate when it hands down its next rate decision on January 28, the lowest variable rates in B.C. should remain around 3.4% until at least mid-March.
Fixed mortgage rates face a much greater risk of increasing in January.
Government bond yields, which lenders use to price their fixed rates, hit a three-month high in December, receded over the holidays and then shot back up to begin the year. This kind of sustained upward pressure on yields gives lenders plenty of leeway to increase their fixed rates.
Fixed rates didn’t move much in December, so they’re not likely to spike in January. Three-year fixed rates and five-year fixed rates in B.C. should still be available for less than 3.9% at the end of the month.
2026 mortgage rate forecast
Variable rates
Variable mortgage rates aren’t expected to experience much change in 2026.
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.
Fixed rates
As of January 2026, it’s possible that fixed mortgage rates will increase in the short-term in response to elevated bond yields.
Long-term fixed-rate projections, however, are difficult to make with any accuracy. Bond yields, which lenders use to price their fixed rates, are determined by factors that are hard to predict, like the state of the economy and the expectations of individual investors.
Some institutions do their best, though. The British Columbia Real Estate Association, for example, expects fixed rates to remain at their current levels for most of 2026.
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 January 2026 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
British Columbia was one of only three Canadian housing markets to experience a monthly increase in home sales in November. Residential sales in the province rose 2.6% versus October, but were down 13.3% year-over-year.
Home buyers in B.C. had plenty of listings to choose from in November. Active listings, the number of homes still for sale at the end of a given month, totalled almost 39,000 in November — a 9.1% increase compared to a year ago.
The growing number of listings mostly held home prices in check in November. The provincial residential average selling price was $972,770, 0.6% lower than in October and down 1.2% year-over-year.. The MLS Home Price Index benchmark price was still over $1 million in Greater Vancouver and the Lower Mainland.
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 2026?
Will mortgage rates come down in 2026?
Not likely, and if they do, it won't be by much. The Bank of Canada isn't expected to lower its overnight rate for most of the year, which means variable mortgage rates could be stuck at their current levels. Fixed mortgage rates will likely continue hovering between 3.9% and 4.3% 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.
DIVE EVEN DEEPER
Clay Jarvis
Clay Jarvis