What are mortgage rates in BC right now?

"What's the rate?" sounds like a question with one answer. In practice there are at least four numbers attached to any mortgage, and they can be almost two points apart. The board above shows all of them side by side. This guide explains which one applies to you, what makes each of them move, and how to tell whether the rate you've been quoted is a good one.

Four rates for one mortgage

The posted rate is the rate a bank publishes. Hardly anyone borrows at it. It exists because banks use it in other calculations, most importantly the penalty formula when you break a fixed mortgage early, and because it anchors the negotiation. On September 29, 2026, RBC's posted 5-year fixed was 6.09%, which also matches the typical big-bank posted rate the Bank of Canada tracks each week.

The bank special is the discounted rate a bank advertises for new purchases and switches. Big banks usually show two versions. One is for insured, or "high-ratio," mortgages where you put down less than 20%. The other is for conventional mortgages. On the same date, RBC's specials for a 5-year fixed were 4.74% insured and 5.04% conventional.

The lowest advertised rate is the best rate being published anywhere, usually by a mortgage broker or an online lender, and usually for an insured mortgage with a quick closing. In late September 2026, the lowest advertised insured 5-year fixed rates were about 4.29% to 4.34%.

The stress-test rate is the one you never pay but must qualify at: your contract rate plus two points, or 5.25% if that's higher. At 4.29%, that's 6.29%. Our affordability calculator shows how much house that rate lets you buy.

When someone asks what rates are, they usually mean the third number. When a bank quotes you, you're usually hearing the second. The gap between the two is where most of the negotiating value is.

What moves fixed rates

Fixed mortgage rates follow Government of Canada bond yields, mainly the 5-year yield for a 5-year fixed. Lenders fund fixed mortgages in the bond market, so when yields rise, fixed rates follow within days or weeks. When yields fall, lenders tend to be slower to pass it on. The Bank of Canada's policy rate affects bond yields, but only indirectly. That's why fixed rates can rise while the Bank of Canada is holding, which is exactly what's been happening in 2026.

The number worth watching is the spread: the lowest advertised 5-year fixed minus the 5-year yield.

The 5-year yield rose from about 3.2% in late July 2026 to about 3.7% by the end of September, while advertised fixed rates only edged up. A spread that thin doesn't usually last. Either yields come back down, or lenders raise fixed rates to restore their margin. If you're buying or renewing in the next few months, get a rate hold in place now. The benchmark strip above the calculator shows the current yield and where it was 60 days earlier, so you can see which way things are moving.

What moves variable rates

Variable mortgage rates are priced as prime plus or minus a set amount, and at the big banks prime moves in lockstep with the Bank of Canada. It has sat exactly 2.20 points above the policy rate for years. With the policy rate at 2.25%, prime is 4.45%. A variable offered at "prime minus 0.80" is 3.65% today and moves when prime moves. The discount itself stays fixed for the whole term.

The Bank of Canada announces its rate on eight scheduled dates a year. The policy rate has been 2.25% since late October 2025, and the next decision is October 28, 2026.

Forecasts published in September 2026 don't agree with each other:

• TD and BMO see the rate on hold through the end of 2027.
• CIBC and National Bank expect 2.75% by the end of 2027.
• Scotiabank expects 2.50% by the end of 2026 and 3.00% by the end of 2027.
• RBC sees 3.25% by the end of 2027.

Markets were leaning toward increases. Nobody can tell you which forecast will be right, which is the honest case for picking a mortgage you can live with under more than one of them.

There are two kinds of variable mortgage, and it pays to know which one you have:

• Adjustable-rate. The payment changes every time prime does.
• Fixed-payment variable. The payment stays the same and the split between interest and principal shifts instead. If rates climb far enough, you hit a trigger point where the payment no longer covers the interest and the lender will ask for more.

Ask which kind you're being offered before you compare rates.

Insured, insurable and uninsured pricing

Lenders price mortgages in tiers based on who carries the default risk.

• Insured mortgages get the best rates, because the mortgage insurer carries the risk of default. These are purchases with less than 20% down, where you pay the CMHC premium.
• Insurable mortgages usually sit in the middle. These are purchases with 20% or more down that would still meet the insurance rules, and the lender can insure them in bulk at its own cost.
• Uninsured mortgages cost the most. This covers refinances, homes at $1.5 million or more, rentals, and some 30-year amortizations.

This is why the same bank can quote you 4.74% with 10% down and 5.04% with 25% down, even though the second borrower looks safer on paper. It's also why comparing your conventional quote with the lowest advertised rate isn't quite fair. Those advertised rates are almost always insured, and a conventional mortgage a little above them can still be priced well.

Branch vs broker, in dollars

Here's the gap between a big-bank special and the lowest advertised rate on the same mortgage in late September 2026. The mortgage is $600,000 over 25 years.

Between the insured special and the lowest advertised rate, the difference is about $150 a month and roughly $12,900 of extra interest over the term. That's before you count the slower paydown. The same comparison works on any quote you receive. Plug your numbers into "Check your offer" above.

That doesn't mean the branch is always the wrong choice:

• Big banks negotiate, especially if you bring a written quote from somewhere else.
• They often add cash-back or legal-fee offers. RBC's page was advertising up to $5,900 in value on eligible mortgages through October 31, 2026.
• Some borrowers value having the mortgage and the chequing account under one roof.

Mortgage brokers are usually paid by the lender, so for a typical owner-occupied purchase with good credit, using one generally doesn't cost you a fee. Ask up front if you're not sure.

Choosing a term when rates look like this

In late September 2026, the lowest advertised rates were about 4.19% for a 3-year fixed, 4.29% to 4.34% for a 5-year fixed, and 3.25% to 3.40% for a 5-year variable. On a $600,000 mortgage over 25 years, that works out to roughly:

• $3,218 a month on the 3-year
• $3,251 on the 5-year
• $2,924 to $2,972 on the variable

Variable starts about $300 a month cheaper. That gap closes if the forecasts calling for increases turn out to be right.

There's no universally right answer, but a few questions narrow it down quickly:

• Could you sell or refinance within five years? Then the penalty matters. A variable costs three months' interest to break, while a big-bank fixed can cost several times that. Our penalty calculator shows your number.
• Could your budget take a payment $300 to $500 higher if prime rose by a point or two? If not, the variable discount is buying you risk you can't carry.
• When would a 3-year term renew? In late 2029. A 5-year would renew in late 2031. Some people deliberately pick the term whose renewal falls at a better time for their household, not the one with the lowest rate.

Rate holds and pre-approvals

A rate hold locks in today's rate for a set period while you shop, commonly 120 days at the big banks and sometimes a little longer. When bond yields are climbing, as they were in September 2026, getting a hold early costs nothing and protects you. Many lenders will also give you a lower rate if their rates fall before your mortgage funds, but ask about that specifically rather than assuming.

A hold comes with a pre-approval, and a pre-approval isn't a final approval. The property still has to pass the lender's appraisal and, for a strata, the document review. The rate on your commitment letter is only locked for that particular purchase and closing date.

Reading a rate quote properly

Two quotes at the same rate can be very different mortgages. When you line them up, look past the headline number.

APR. Banks publish an annual percentage rate next to each rate. It folds in fees such as the appraisal, so it's a slightly truer cost. RBC's 5.04% conventional 5-year special showed an APR of 5.07%, for example.

Amortization pricing. Some lenders charge more for amortizations over 25 years. On September 29, 2026, RBC's 5-year fixed special was 5.04% for 25 years or less and 5.14% for longer. Its variable discount shrank from prime minus 0.50 to prime minus 0.40. If you're comparing a 30-year quote with a 25-year one, make sure you're comparing like with like.

Prepayment privileges. These typically let you pay down 10% to 20% of the original balance each year and raise your payment by a similar amount. Some low-rate products offer much less.

Portability and penalty method. If there's any chance you'll move before the term ends, check how long you have to port the mortgage and how the penalty is calculated. That can matter more than a tenth of a point on the rate.

Cash-back offers. They're real money, but they're usually clawed back, at least partly, if you leave early. Treat them as a discount that only applies if you stay for the full term.

How the mortgage is registered. A collateral charge can make it more expensive to switch lenders at renewal. It's worth knowing before you sign.

Rates for less common situations

The board above covers the most common case: an owner-occupied home, good credit, documented income. Here's how rates tend to move away from it.

Rental properties. These are priced above owner-occupied homes, and a single-unit rental needs at least 20% down. Two- to four-unit rentals can sometimes be insured under a CMHC income-property program, which helps the rate, but the down payment is still larger than for a home you live in.

Self-employed buyers, recent newcomers, and anyone whose credit has taken a hit. These buyers sometimes end up with alternative lenders. Their rates are noticeably higher, often by a point or more, and they sometimes charge a lender fee. For many borrowers it's a one-term bridge while they rebuild the file for a regular lender at renewal.

Longer terms. Seven- and ten-year fixed rates cost more than five-year ones. RBC's 7-year special was 5.15% against 5.04% for five years. Longer terms buy certainty, and after year five the Interest Act caps the penalty for individual borrowers at three months' interest, which makes a 10-year less risky to break late in the term than people assume.

BC credit unions. They set their own rates and sometimes lead the market with local specials, especially on 2- and 3-year terms. They're also not bound by OSFI's stress test on uninsured mortgages, although most apply something similar.

Renewing in 2026 and 2027

A lot of BC owners are renewing mortgages they signed in 2021 and 2022, when rates were much lower. Take someone who borrowed $560,000 at 1.99% over 25 years in 2021. They've been paying about $2,369 a month and now owe about $469,000. Renewing at 4.29% over the remaining 20 years puts the payment at about $2,905, which is roughly $536 more a month. At a 4.74% bank special it's about $3,016.

At renewal, the difference between taking the first offer in your renewal letter and shopping around can easily be $100 a month or more. Since November 2024, you can switch to another lender at renewal without passing the stress test again, as long as you don't increase the loan. Most lenders let you renew or switch within about 120 days of maturity. That gives you time to get quotes and use them.

One thing to check first: some banks register mortgages as collateral charges. Moving one of those to another lender can mean legal costs, which the new lender may or may not cover.

How this page is built

We're not a mortgage broker and we don't sell rates. This page exists so that EstateBlock buyers and sellers have honest reference points. Here's where each number comes from:

• From the Bank of Canada, updated automatically each week: the policy rate, prime, the 2-, 3- and 5-year Government of Canada bond yields, and the typical big-bank posted rates.
• From RBC's public rates page, picked up the same way: the big-bank posted and special rates. We use RBC as a stand-in for big-bank pricing because it publishes a complete table. Other big banks are close, but not identical.
• From national rate-comparison sites, checked weekly: the lowest advertised rates.

The date at the top of the board tells you how fresh the numbers are. If it's more than two weeks old, treat the numbers as a guide only and confirm with a lender.

Specific dated figures in this guide, such as the renewal example and the spread table, are from late September 2026. They're there to show how the pieces fit together, not as today's quotes.

Questions people ask us

Dan Marusin, PRECRenanza Realty Inc.
778-918-5990

Want a second quote before you sign?

Dan works with several BC mortgage brokers and can introduce you to one who fits your file, whether you're buying, renewing or switching. Send the rate you've been offered and your timeline. Your inputs from "Check your offer" come along with the message.

Buying through EstateBlock? Ask about our buyer cashback rebate.

Leave this field empty

Name

Email

Phone

Send my offer to Dan

By sending this you agree to be contacted by EstateBlock.com about your request and acknowledge our Terms of Use and Privacy Policy.