BC Mortgage Rates
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B.C. mortgage rate update: February 2026
After the Bank of Canada decided to hold its overnight rate at 2.25% on January 28, mortgage rates in British Columbia could be in for another month of stasis in February.
Variable mortgage rates, which are directly impacted by the BoC’s overnight rate, are expected to stay at their current levels until at least March 18, when the Bank will make its next rate decision.
But the overnight rate is expected to remain unchanged for much, if not all, of 2026, so variables might be as good as they’re going to get this year.
That’s not a terrible scenario if you’re shopping for a variable-rate mortgage. Some brokerages and online lenders are offering variables for as low as 3.4%.
Fixed mortgage rates are a little harder to predict, but they should remain mostly unchanged in February. Government bond yields, which influence fixed mortgage rates, have been steadily declining since spiking in December, giving lenders less reason to hike their fixed rates.
It might take some serious economic turbulence for yields to fall and drag fixed rates down with them. Barring that unlikely scenario, fixed rates should stay around their current levels in B.C. for the foreseeable future.
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 February 2026, fixed mortgage rates could decrease in the short-term in response to steadily declining government 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 February 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
Like most provincial housing markets, British Columbia’s took a step backward in December. Home sales were down 1.1% versus November and 6% year-over-year.
Overall, home sales in B.C. were 5.7% lower in 2025 than in 2024. That’s a difference of just over 4,200 transactions.
The decreased sales activity in December left B.C. home buyers with an ample number of properties to choose from in January. At the end of December, there were over 31,000 homes still on the market, 9.2% more than a year before.
The elevated supply is helping keep a lid on home prices. In December, the benchmark price for homes was virtually flat in most regions of the province. Prices in B.C. are still high, though. The benchmark price in Vancouver was still over $1.1 million in December, despite falling 4.5% in the past 12 months.
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.
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Clay Jarvis
Clay Jarvis