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What Are the Best Mortgage Rates in British Columbia

What Are the Best Mortgage Rates in British Columbia?

Your home is the single biggest investment you’re ever likely to make. After all, in British Columbia, the average cost of a home is $737,834.

But depending on your mortgage rate, you could end up paying thousands more in interest. And that’s money that’s far better invested elsewhere.

In this guide, we’ll show you how to find the best mortgage rates in British Columbia so that you can make the most of your hard-earned dollars. Pen and paper at the ready, you’ll want to take notes!

How Do Fixed Mortgage Rates Compare to Variable Rates?

The first decision that mortgage buyers need to make is whether to choose a fixed rate or variable rate mortgage. Fixed-rate mortgages are a popular choice with first-time buyers and current homeowners who want to have a clear idea of their monthly outgoings.

With a fixed rate, you get exactly what you sign up for; the same repayment sum every month for the duration of your mortgage. Unless your circumstances change dramatically, you’ll continue to afford all your payments. Meaning no nasty shocks in the future.

Variable rates often have a lower headline rate than fixed-rate mortgages. And for cash-strapped buyers, this sounds pretty appealing. But it’s important to remember that the interest on a variable rate mortgage can significantly increase during your mortgage term, adding to your financial burdens.

3 or 5 Year Fixed Mortgage Rates in British Columbia: Which Is Best?

If you decide on a fixed-rate mortgage, the next step is to compare mortgage terms to find the best rate possible. You can fix your mortgage for as little as a year and as much as 10 years depending on your lender.

Most buyers choose a 3 or 5-year fixed mortgage rate to provide short-term financial security but still leave them with the option of negotiating if rates change significantly during their term.

The longer you fix for, the more security you have. Meaning if interest rates shoot up, you’re still protected. However, if rates reduce, you’ll be stuck paying the fixed-rate or be charged to re-mortgage early, which will negate the cost benefits of switching!

Your final rate will depend on your home’s loan to value (the less you owe the less interest you typically pay) and other factors, like your credit history and whether you’ve purchased mortgage default insurance.

Who Are the Biggest Mortgage Lenders in British Columbia?

You can apply for a mortgage with leading banks like RBC, Scotiabank, and CIBC. Alternatively, you can apply to a credit union or directly with a mortgage broker.

BC has the largest number of credit union members in Canada, at around 1.9 million members. These unions offer mortgages exclusively to homebuyers in British Columbia often offering exclusive rates and higher approval rates for buyers with weak credit history.

Vancity is the largest credit union in BC according to the Canadian Credit Union Association. Vancity is closely following by Coast Capital Savings, First West Credit Union, and Prospera Credit Union. All of whom provide mortgages for properties within British Columbia.

Whilst it’s worth comparing Union and bank rates, mortgage brokers routinely offer the best figures on the market. The largest brokers in the province include the VERICO network, Dominion Lending Centres, and Canadian Mortgage Experts.

Who Offers the Best Rates?

Residents of British Columbia have access to some of the best mortgage rates in Canada. With plenty of brokers in the market, strong credit unions, and the big banks all trying to compete for your custom, there are plenty of great deals to be discovered!

But how do you compare so many rates, terms, and offers?

The difference between the mortgage rates in BC can be more than 1% when comparing quotes on lenders’ websites. Comparing mortgage rates on a comparison site like LowerMyBills takes the headache out of the task by gathering like-for-like quotes from BC’s leading lenders.

What is the Forecast For Mortgage Rates in British Columbia?

When you’re choosing a mortgage, it’s not just a case of thinking about the here and now. You need to consider what the market will look like in the future so that you can make an informed choice about whether to fix your rate and if so, for how long.

However, depending on how the Canadian economy bounces back from 2020’s COVID-19 lockdowns, recovery could speed up and interest rates could increase alongside it. In light of this, fixing your rate might not be such a bad idea, whilst they’re so favorable.

Need Help Finding the Best Mortgage Rates in British Columbia?

There’s no doubt that you need to compare mortgage rates to find the best deals on the market. For the past 20 years, LowerMyBills has helped thousands of home buyers navigate the complex world of finances and saved them hundreds through exclusive relationships with BC’s leading mortgage providers.

If you want to compare mortgage rates in British Columbia LMB has you covered. Use our comparison tool to compare quotes for your property and unlock incredible deals. 

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