Instantly compare current mortgage rates in British Columbia for free.

Having a good credit score is critical. The Canada Mortgage and Housing Corporation says the credit score requirement on insured mortgages should be 680.

Other factors you should have in order can include:

• Paying down debt – This can accomplish a few things. Paying debt frees up resources to put toward your downpayment or mortgage. It also indicates to lenders that you are a "good risk" and have the ability (and desire) to pay loans responsibly.
• Calculating assets and liabilities – If knowledge is power, understanding your economic situation will help you obtain the mortgage you need. By having a complete picture of assets and liabilities, you will be better prepared to provide the information lenders require to decide on your mortgage application. This can be done with an accountant if you have one or on your own.
• Having a consistent employment history – Lenders want to see elements of your financial life that reduce risk. Being employed consistently indicates your ability to be financially responsible. This will show lenders that you can pay your debts with little to no chance of default.
• Having a large downpayment - The more you save towards the purchase of a house, the better you will be in the long run in terms of debt burdens. However, lenders also see this as a lower-risk proposition. The less you need to borrow, the quicker they can get their money back if you default on the loan. Monthly costs are reduced for you, and you look more attractive to lenders who are about reducing risk.
• Having good ratios - Most importantly, you must prove you can carry the mortgage. This is calculated by your broker or mortgage agent using a debt service ratio analysis.

Unlike a bank, a mortgage broker can only offer mortgages from their line of products. They can access many lenders and help you choose the right product for your circumstance. The good news is that mortgage brokers are free to use and are paid by the lender while also having access to a variety of lender interest rates. LowestRates.ca can help you navigate and compare rates and direct you to the broker that best suits your B.C. mortgage rate needs.

Time plays a critical role in calculating B.C. mortgage rates. There are two key measures of time: the length of time your current mortgage rate is locked in and the total amount of time it takes to pay off your mortgage.

Mortgage term: The mortgage term refers to the period you’re locked into your mortgage contract. This includes the rate, lender and the contract's terms and conditions. At the end of the term, you’ll be able to renew your mortgage contract at a new rate. Homeowners repeat this process until they pay off the principal of their mortgage. A mortgage term can vary from six months to 10 years, but the most popular term in Canada is five years.

Amortization period: The amortization period refers to the amount of time it takes to pay off the principal of your mortgage. In Canada, the maximum amortization period is 35 years. However, if your down payment is less than 20%, you’ll have to purchase CMHC mortgage insurance. The maximum amortization period on insured mortgages is 25 years.

Purchasing a home in B.C. comes with a myriad of decisions. Once the location has been selected, and the choice between fixed or variable mortgages has been decided, buyers will want to consider their options between an open or closed mortgage.

Open mortgage: An open mortgage allows you to pre-pay any amount of your mortgage at any time without penalty. Interest rates are typically higher than closed mortgage rates in B.C. These mortgages provide flexibility and freedom to pay what they want, and terms are generally shorter.

Closed mortgage: Closed mortgages usually have lower interest rates than open ones. This is mainly because closed ones limit the number of extra payments you can make each year.

The cost of living in British Columbia can be as diverse as the many regions within the province. Expenses will fluctuate depending on whether you rent or own your home, drive or commute to work, and which part of the province you settle in.

For example, Vancouver is one of the most expensive cities in Canada to live in, and it is difficult for new homebuyers to break into the city's housing market. However, outside city limits and into more rural areas, homebuyers may find they can buy more with less and keep living costs of living down within less populated areas.

One of the most significant expenses in B.C. is the cost of car insurance. The Insurance Bureau of Canada says that B.C. has the highest rates in Canada, with an average rate last year of $1,832 — second only to Ontario.

B.C. is also very attractive for its temporal climate and boasts a healthy retirement population, especially in Victoria. Tourism and trade are also essential to B.C.'s economy, making it a relatively expensive destination for residents and visitors.

B.C. is an expensive destination for both first-time and seasoned homebuyers. Larger cities have seen substantial increases in home prices in just one year. Finding the best mortgage rates in B.C. is paramount, but it’s not the only way to ensure the affordability of your mortgage. Other features can help, including:

• Prepayment privileges: Some lenders will offer prepayment privileges, giving the homebuyer the right to pay off part or all of their mortgage balance before maturity (ahead of schedule) without penalties. Substantial savings can be had by saving on future interest payments.
• Penalties for breaking a mortgage: Some lenders will charge a fee if you pay more than the allowed additional amount on your mortgage, break your contract, transfer your mortgage to another lender before the end of your term, and pay back your entire mortgage before the end of the term. Avoiding these events will prevent extra fees, but homeowners should calculate the pros of breaking a contract to get a better rate or paying the mortgage in full.
• Porting your mortgage: People often move house before the mortgage is paid off. Porting your mortgage means taking your existing mortgage, with its current rate and terms, and attaching it to your new home. Porting can generally occur if you are purchasing a new home at the same time you are selling your current home. This can help save on penalties and fees in the future.

A mortgage rate hold or rate lock allows buyers a guaranteed interest rate on their mortgage for a set period (usually 30 to 60 days but up to a maximum of 120 days). It is usually used when a buyer knows they will be purchasing or refinancing their home in the near future.

Prepayment options allow you to repay your mortgage sooner than the official payment schedule. There are two ways to do this – increase your mortgage payments or pay a lump sum.

Yes, it's safe — you no longer need to visit a bank branch or mortgage broker's office in person to apply for a mortgage. It's also becoming increasingly common for Canadians to apply for mortgages online. LowestRates.ca takes care of the heavy lifting by comparing the market for you and can connect you with the best mortgage lenders in British Columbia and across the country.

We only work with reputable, trustworthy financial institutions. Your credit score won’t be affected, and your information is secure.

We have a robust selection of lenders on LowestRates.ca, including big banks and many independent brokers, and we’re always adding more lenders. This ensures we consistently deliver competitive rates to you. Even if you're not ready to commit to anything, you can use our site as a starting point for research. It’s totally free, and you’re under no obligation.

The better informed you are, the more likely you'll negotiate a better deal for yourself. And, really, that’s what we care about the most.

Mortgage rates in B.C. can fluctuate depending on population size, home styles, neighborhood values and other reasons. Simply put, greater competitive pressure in Canada's hottest real estate markets (especially Vancouver and Toronto) translates into cheaper mortgage rates. Ontario is the most competitive by a long shot, with 113 lenders publicly advertising mortgage rates (not including brokers).

Also, different lenders have different overhead costs they have to consider. They also have to consider the borrower's financial situation, including their debt-to-income ratio, credit score and down payment. To find the best mortgage rate, you need to find the right lender through sites like LowestRates.ca.