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Are you searching for the best mortgage rates in Chilliwack, British Columbia, Canada? You’re in the right place. LowestRates.ca makes finding the lowest mortgage interest rate in Chilliwack easy. Instead of visiting multiple websites to find out about rates, LowestRates.ca lets you get all the crucial information you need in one convenient location, helping you pinpoint the cheapest Chilliwack mortgage rates in a snap.
To get started, scroll to the top of this page and tell us whether you’re buying a home, renewing or refinancing, and start comparing today’s mortgage rates in Chilliwack from 75+ banks and brokers across Canada today.
When you apply for a mortgage through LowestRates.ca, your down payment amount will determine whether you’ll have a conventional vs. high-ratio mortgage. So, what’s the difference? And which kind of mortgage is likely to come with the best house mortgage rates in Chilliwack? Here’s a breakdown:
Conventional mortgages: This type of mortgage requires you to put down at least 20% of the home’s purchase price. You can then borrow the remaining 80% of the purchase price through your Chilliwack mortgage loan. With a conventional mortgage, you are not required to have CMHC mortgage default insurance.
High-ratio mortgages: This mortgage type allows homebuyers to make a down payment amount below 20% of the purchase price of their home. The mortgage accounts for the rest of what you owe, above 80% of the purchase price. High-ratio mortgages are considered to be riskier than conventional mortgages, so purchasing CMHC mortgage default insurance is required to seal the deal.
Each type of mortgage has its benefits for different kinds of homebuyers. Conventional mortgages may carry slightly higher interest rates because they don’t come with CMHC mortgage insurance. However, they may be cheaper over the life of the loan because the homebuyer doesn’t have to pay these insurance premiums. High-ratio mortgages allow homebuyers to get into the market without having to save the full 20% required for a down payment with a conventional mortgage.
|Date||Average Conventional Rate||Average High Ratio Rate|
Last Updated: September 1, 2021
Before you run a mortgage rates comparison in Chilliwack, you’ll need to determine whether you prefer a fixed-rate or variable-rate mortgage.
Fixed-rate mortgages: With this type of mortgage, your interest rate holds steady throughout the mortgage term. You’re insulated from swings in the market that could otherwise cause interest rates to rise or fall. Fixed mortgage rates in Chilliwack and throughout Canada tend to be slightly higher than variable mortgage rates, because the lender assumes some of the risk of market change, insead of the homebuyer. Most homebuyers appreciate the predictability of a fixed-rate mortgage, making this the most popular home mortgage type in the country.
Variable-rate mortgages: With this type of mortgage, your rates will change according to a formula found in your mortgage contract. Generally, variable mortgage rates fluctuate along with the bank’s prime rate, which changes along with economic trends. If rates in the overall economy go up, you may face higher interest for a time and this may slow the pace at which you pay off your home loan. However, if interest rates are going down, you could benefit by having more of your mortgage payment cover the loan principal, and that could help you pay off your mortgage faster. Chilliwack variable mortgage rates tend to be lower because the homebuyer assumes more of the risk of market changes than the lender.
Last Updated: September 1, 2021
When you apply for a home loan, mortgage companies in Chilliwack (and across Canada) consider several factors in determining approval, the maximum amount they are willing to lend you and how they’ll set your interest rate.
Here are the main factors that banks and other lenders consider in setting your Chilliwack home mortgage rates:
Down payment: The size of your down payment plays a role in how your lender sets your mortgage rate. You’ll need to make a down payment of between 5%-20% of your home’s purchase price, depending on the price of the home. Higher down payment amounts typically earn lower interest rates from lenders because you’re seen as a safer borrower.
For homebuyers making a down payment of less than 20% of their home’s purchase price, you’ll need to buy CMHC mortgage insurance. It’s important to factor this cost into your budget as it’s mandatory.
Want to know if you’ll qualify for the lowest mortgage rates in Chilliwack? You’ll also need to understand how lenders evaluate your debt and income. They calculate two different debt service ratios to see if you meet certain standards.
Gross debt service ratio (GDS): This ratio compares your income to your housing expenses. Lenders prefer borrowers who will spend no more than 35% of your gross annual income on housing costs. These include your monthly mortgage payment, heating costs and property taxes (and half of your condo fees, if your home is a condo).
Total debt service ratio (TDS): The TDS ratio compares your income to the sum of all the housing costs from your GDS ratio plus your other regular debt payments. Debt payments might cover things like car or personal loans, student loans and credit cards. Lenders prefer borrowers that have a TDS ratio below 42%.
Both these figures are a way for lenders to determine whether you can afford the mortgage payments if they approve you for a home loan.
Two other factors lenders look at in setting your interest rate include:
Credit score: Your credit score is a number ranging from 300-900, with higher numbers indicating greater creditworthiness, and usually earning lower interest rates on mortgage loans. Credit scores are based on your history of borrowing and repaying money and maintaining credit accounts. High credit scores typically indicate more experience using credit and doing so responsibly. This means moderating the amount of credit accounts you acquire and the amount of borrowing you do against your available credit, and maintaining a history of timely loan repayments. Most major Canadian lenders require a minimum score of 600 for mortgage loan approvals. To buy CMHC mortgage insurance, required if your down payment amount is below 20%, you’ll need a minimum credit score of 680.
Income: Lenders want to know about the type of amount of income you have, including employment paycheques, investment and rental income. Long-term, full-time employment is considered less risky than seasonal or temporary employment. If you are self-employed, you’ll need to provide extra documentation so lenders can get a picture of your business’s finances. Lenders may ask for three years of tax returns, your GST/HST account and business number, articles of incorporation, bank statements, balance sheet, cash flow statement and other items.
Are you feeling well-qualified to work with the best mortgage lenders in Chilliwack? If you’re ready to compare mortgage rates for your Chilliwack home purchase, go to the top of this page and tell us whether you’re buying, renewing or refinancing to get started on your personalized quote.
The size of your mortgage depends on your local market, the size of your down payment and your mortgage interest rate. The benchmark price for a single-family home in Chilliwack is $816,400, according to July 2021 sales figures from the Canadian Real Estate Association (CREA).
Housing is pricey in much of British Columbia, and that includes Chilliwack. However, home prices here compare favorably with the provincial average forecasted for all of 2021 by the British Columbia Real Estate Association, which puts that figure at $911,300.
Using the benchmark sale price of $816,400 and assuming a 20% down payment of $163,280, that leaves a mortgage amount of $653,120. You can use LowestRates.ca’s mortgage payment calculator to easily calculate the mortgage for a Chilliwack home, based on the amortization period, interest rate, and payment frequency.
If you plan to make a down payment of less than 20% of your home’s purchase price, don’t forget to budget for the required CMHC mortgage insurance. You can use LowestRate.ca’s mortgage default insurance calculator to calculate the cost.
Mirroring national trends, Chilliwack’s prices have increased substantially over the last year. The good news is that the major spike in home prices seen in the spring appears to be over and prices have come down since then.
Chilliwack’s benchmark price for a single-family home is $816,400, according to CREA data for sales in July 2021, a 32% increase from Chilliwack homes sold in July of 2020. The benchmark price for townhomes during the same period was $578,000, rising by 29.8% compared to July 2020. The benchmark price for a condo was $356,200, representing a year-over-year increase of 24.1%.
The Canadian Real Estate Association’s home price index (HPI) composite benchmark price for all housing types in Chilliwack in July 2021 is $706,000 in July 2021, a gain of 30% over July 2020.
Closing costs are all the expenses related to finalizing the purchase of your home. You should anticipate spending 1.5% to 4% of the home’s sale price to cover closing costs, in addition to the down payment.
Closing costs may cover things like:
An additional closing cost for Chilliwack homebuyers is the British Columbia provincial land transfer tax.
There is a general property transfer tax with the following rates, based on the property’s fair market value:
You can use LowestRates.ca’s land transfer tax calculator to calculate the exact cost of property transfer tax on your Chilliwack property.
Foreign nationals and corporations in Chilliwack must also pay an additional 20% tax that applies to property sales within certain parts of British Columbia.
The amortization period is the estimated time period it will take for you to pay off your mortgage loan in full, including interest. The mortgage term is the time period you’ve agreed to work with a specific lender to service your loan. This timeframe is part of your mortgage contract. The most common mortgage term in Canada is five years, but lenders offer other options ranging from as short as six months to as long as 10 years. Most homebuyers have numerous short mortgage terms over a longer amortization period.
During the mortgage term, you make repayments according to rules spelled out in your contract. Your contract also explains how your interest rate is set, whether and how you can make extra payments, when penalty fees apply and so on. After your mortgage term ends, you can renew your mortgage with the same lender or switch to a new one.
Open and closed mortgages differ in the flexibility they allow in your loan repayment schedule. They typically come with different mortgage interest rates in Chilliwack and throughout Canada.
Open mortgage: An open mortgage lets you pay off your mortgage faster with built-in prepayment privileges and no prepayment penalties. In exchange for this flexibility, the homebuyer usually pays higher interest rates. An open mortgage is best for people who plan to sell or refinance soon.
Closed mortgage: A closed mortgage comes with a more rigid repayment schedule, with penalties for making accelerated or extra payments. However, some lenders do allow limited prepayment options with their closed mortgages. Usually borrowers need to follow very specific rules for how extra payments are made beyond their monthly payments. In exchange for agreeing to a less flexible repayment schedule, borrowers with closed mortgages are typically offered lower interest rates. Most homebuyers opt for closed mortgages because they don’t plan to pay off their loan early and find the lower interest rates appealing.
Chilliwack is one of the oldest municipalities in British Columbia, located just over 100 kilometres east of Vancouver in the Fraser Valley. Originally a farming community, Chilliwack today is a growing city of around 92,000 residents known for its high quality of life, many outdoor activities and relatively low cost of living compared to pricey Vancouver.
Your cost of living in Chilliwack depends on many individual factors, including whether you own or rent your home, whether you have a personal vehicle to get around and whether you have dependents. Chilliwack home prices are high compared to other regions of Canada but are considerably lower than in other parts of British Columbia, while still offering fairly close proximity to Vancouver’s booming job market and cultural attractions. The average home sale price in Chilliwack from January through July 2021 was $703,152, according to Canadian Real Estate Association sales figures.
Drivers in British Columbia pay the highest auto insurance rates in Canada. Like all drivers in B.C., Chilliwack drivers must buy their basic, mandatory auto coverage through Autoplan, a program of the Insurance Corporation of British Columbia, a crown corporation. Private insurance providers offer optional additional coverage. The average annual auto insurance premium price in B.C. is $1,832, according to the Insurance Bureau of Canada.
If you want to save on your mortgage, it’s wise to shop around for below-average mortgage rates in Chilliwack. But even if you score the cheapest available mortgage rates in Chilliwack, there are still a few other factors to be aware of that can impact the overall cost of your mortgage.
Penalties: Most mortgage contracts include penalty fees if you don’t follow the rules for repayment of your loan. A common fee is the prepayment penalty, for paying off your loan early or making additional payments above the monthly minimums. You might also get hit with penalties for breaking your mortgage contract by switching lenders, selling your home or refinancing before your term is up. It’s important to understand what could lead to a penalty and how much the penalties are before you sign your mortgage contract.
Prepayment privileges: Do you dream of paying off your mortgage early? If you’d like to pay down your mortgage beyond your regular monthly mortgage payments, you’ll need to understand what prepayment privileges your mortgage contract includes. Prepayment privileges mean you’re permitted to make additional payments or pay off your mortgage faster without incurring penalties. Prepayment privileges vary, so it’s important to understand what’s in your specific mortgage contract.
Open mortgages offer the most generous prepayment privileges, allowing accelerated payments with no prepayment penalties. However, they often have higher interest rates than closed mortgages.
Closed mortgages are more common. In exchange for agreeing to pay off your mortgage at a more predictable rate, lenders typically offer lower mortgage rates. Some closed mortgages offer limited prepayment privileges, such as the ability to double a mortgage payment once per year, or make a lump sum payment up to a certain percentage of your mortgage amount. Just be sure you understand what’s allowed, because if you don’t adhere to the rules of your contract’s prepayment privileges, you may end up with a penalty fee that far outweighs the savings on interest from paying down your principal faster.
Portability: If your mortgage is portable, it means you can transfer it to a new property if you decide to buy a new home before paying off your earlier mortgage. Often, your original mortgage can be added to a new home loan to make up the difference in sale price. If you think you may want to buy a new home before paying off your mortgage, ask about your lender’s portability options. This is also a term you may be able to negotiate as part of your mortgage contract.
LowestRates.ca works with 75+ banks and brokers to bring you competitive mortgage rates from lenders in Canada and we’re always adding new ones. We work with our partners to obtain their best deals and offers, and then we let them compete for your business. All you have to do is answer a few questions, and in minutes you’ll be provided with today’s mortgage rates. There’s no obligation, but you can choose to speak with our broker partner to secure your best rate and see if you're eligible for more savings.
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 becoming increasingly common for Canadians to apply for mortgages online. LowestRates.ca only works with reputable, trustworthy financial institutions. Your credit score won’t be affected and your information is secure. We don’t share your information with anyone unless you want to connect with a mortgage broker. We take care of the heavy lifting by comparing the market for you and can connect you with the best mortgage lenders in the country.
We have a strong selection of lenders on LowestRates.ca including the big banks and many independent providers and we’re adding more lenders all the time. This ensures we’re always delivering you a competitive rate. 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.
This article has been updated from a previous version.*
When it comes to shopping for mortgages, most homebuyers in Canada tend to take a conservative approach.