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Check out today's best mortgage rates in Canada by type and term.
| Insured ? | 80% LTV ? The rates in this column apply to mortgage amounts between 65.01% and 80% of the property value. The home must be owner-occupied and have an amortization of 25 years or less. You must have purchased it for less than $1 million. These rates are not available on refinances. Refinances require "Uninsured" rates. | 65% LTV ? The rates in this column apply to mortgage amounts that are 65% of the property value or less. The home must be owner-occupied and have an amortization of 25 years or less. You must have purchased it for less than $1 million. These rates are not available on refinances. Refinances require "Uninsured" rates. | Uninsured ? | Bank Rate ? | ||
|---|---|---|---|---|---|---|
Insured 4.64% | 80% LTV 4.19% | 65% LTV 4.19% | Uninsured 4.99% | 4.99% | ||
Insured 3.99% | 80% LTV 3.89% | 65% LTV 3.89% | Uninsured 4.44% | 4.53% | ||
Insured 3.69% | 80% LTV 3.79% | 65% LTV 3.79% | Uninsured 3.9% | 4.39% | ||
Insured 3.84% | 80% LTV 3.99% | 65% LTV 3.99% | Uninsured 4.39% | 4.44% | ||
Insured 3.69% | 80% LTV 3.55% | 65% LTV 3.55% | Uninsured 3.69% | 4.19% | ||
Insured 4.19% | 80% LTV 4.24% | 65% LTV 4.24% | Uninsured 4.89% | 5% | ||
Insured 5.04% | 80% LTV 4.34% | 65% LTV 4.34% | Uninsured 5.24% | 6.09% | ||
Insured 3.9% | 80% LTV 3.95% | 65% LTV 3.9% | Uninsured 3.9% | 5.95% | ||
Insured 3.45% | 80% LTV 3.45% | 65% LTV 3.45% | Uninsured 3.5% | 4.24% | ||
Insured N/A | 80% LTV N/A | 65% LTV N/A | Uninsured N/A | N/A | ||
Insured 5.45% | 80% LTV 5.45% | 65% LTV 5.45% | Uninsured 5.5% | N/A |
There are three main drivers behind mortgage rates in Victoria and Canada at large:
The Bank of Canada influences mortgage rates through its policy rate. The Bank’s objective is to keep inflation in the target range of 1% to 3% and preserve the value of the Canadian dollar. It achieves this by setting the target overnight rate, also known as the policy rate.
As of today, the policy rate is 2.25%. The central bank uses the target rate to influence how the banks set their own rates and acts as a barometer for the rate at which banks borrow and lend among themselves.
The higher the inflation, particularly if it’s above 3%, the higher the likelihood of a rate hike. Though inflation does not directly affect mortgage rates, the Bank tends to raise rates to cool down economic activity and force homebuyers to retreat from the market. It’s worth noting that government bond yields, which influence fixed rates, are affected by inflation as well, in addition to factors like oil prices, geopolitical tensions and broader economic conditions (which currently remain uncertain).
Banks, credit unions, monoline lenders and other financial institutions compete to attract borrowers across Victoria and beyond. During competitive market conditions, lenders may offer better rates. Shopping around and comparing multiple lenders — including local British Columbia credit unions like Coastal Community Credit Union and Island Savings — can often result in a better mortgage rate.
There are many factors that affect mortgage rates in Victoria. When a lender is deciding whether to give you a mortgage, they need lots of evidence that you’ll be able to make payments. Read on to find out what factors lenders consider so you can know how to find the best mortgage rates in Victoria.
1. Down payment
When it comes to a down payment, the benchmark is 20% of the sale price. If you put down less than 20% on your mortgage, you’ll be required to pay for mortgage insurance, which protects the lender in case you stop making payments. This insurance also entitles you to a lower mortgage rate since the lender knows that your debt will be repaid even if you default.
If you put down 20% or more (this is known as a conventional mortgage), your interest rate will be higher than an insured mortgage. However, your lender may offer you a discounted mortgage rate if you put down significantly more than 20% as a down payment, as you’ll have even more equity in your home which in turn lowers the lender’s risk.
2. Debt service ratios
There are two key debt service ratios, or the amount of your income that goes to servicing debts, that you cannot exceed to qualify for a mortgage.
3. Credit score
Like any money you borrow, the interest rate on your mortgage will be affected by your credit score. The best mortgage rates go to those with “excellent” credit scores, which are scores of 750 or higher. The lower your credit score, the higher your mortgage rate will be. Unfortunately, if you have a poor credit score or no credit history, you may not even qualify for a mortgage at a traditional lender.
4. Employment
Mortgage lenders will want to see that you are employed full time and earn enough to cover your mortgage payments. If you’ve just started a new job, the lender will want to see that you are past your probation period at your current position before you qualify.
Business owners and the self-employed can still qualify for a mortgage, but your lender will likely request proof that you have a stable source of income, meaning you may have to provide more pieces of documentation than a salaried applicant.
5. Income
The higher your income and the lower your debt service ratios, the more appealing you are to any potential lender. It’s important to note, however, that a lender is less likely to consider irregular income such as bonuses or freelance work as part of your income calculation. That’s because this sort of income is seen as less steady than that from a full-time job.
6. Broker versus bank
Another factor is your lender. Broker mortgage rates in Victoria are going to be different than bank mortgage rates in Victoria. It’s important to compare your options to see which lender will give you the best deal. You can use LowestRates.ca so that you can quickly find the best mortgage lenders in Victoria.
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How do these mortgage types differ? Conventional (low-ratio) mortgage requires a down payment of 20% or more, with no mandatory insurance, while a high-ratio mortgage requires a down payment of below 20%, plus mandatory insurance.
Which mortgage type offers cheaper rates? As of September 2026, the average conventional 5-year fixed rate is 4.18%. That’s 16 bps above the average high-ratio 5-year fixed rate, which stands at 4.02%.
| Date | Average Conventional Rate | Average High Ratio Rate |
|---|---|---|
| 10/25 | 4.50% | 4.42% |
| 11/25 | 4.45% | 4.44% |
| 12/25 | 4.58% | 4.45% |
| 01/26 | 4.58% | 4.46% |
| 02/26 | 4.57% | 4.63% |
| 03/26 | 4.38% | 4.30% |
| 04/26 | 4.31% | 4.10% |
| 05/26 | 4.26% | 4.13% |
| 06/26 | 4.15% | 3.95% |
| 07/26 | 4.17% | 4.00% |
| 08/26 | 4.18% | 4.02% |
| 09/26 | 4.21% | 4.00% |
Last Updated: September, 2026
How do these mortgage rates differ? A fixed rate mortgage is a rate fixed over a period of time. Interest rates and the mortgage payments remain the same (and consistent) over that mortgage term. A variable rate mortgage is different. While the mortgage payment remains constant, the interest rate payments fluctuate with the prime interest rate.
Which rate is cheaper?As of September 2026, the 5-year fixed rate is 4.13%. That’s 44 bps above the 5-year variable rate, which stands at 3.69%.
| Month | Fixed | Variable |
|---|---|---|
| 10/25 | 4.76% | 4.78% |
| 11/25 | 4.73% | 4.58% |
| 12/25 | 4.79% | 4.60% |
| 01/26 | 4.70% | 4.54% |
| 02/26 | 4.62% | 4.56% |
| 03/26 | 4.44% | 4.36% |
| 04/26 | 4.26% | 4.18% |
| 05/26 | 4.19% | 3.67% |
| 06/26 | 4.11% | 3.61% |
| 07/26 | 4.13% | 3.67% |
| 08/26 | 4.13% | 3.69% |
| 09/26 | 4.12% | 3.70% |
Last Updated: September, 2026
New mortgage loan values have been trending upward throughout 2025, reaching the average of $498,670 in Victoria and $360,597 in Canada by the end of Q4 2025.
Here are all the average new mortgages loan values in Victoria from 2022 to 2025:
| Q1 – 2022 | Q2 – 2022 | Q3 – 2022 | Q4 – 2022 | Q1 – 2023 | Q2 – 2023 | Q3 – 2023 | Q4 – 2023 | Q1 – 2024 | Q2 – 2024 | Q3 – 2024 | Q4 – 2024 | Q1 – 2025 | Q2 – 2025 | Q3 – 2025 | Q4 – 2025 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Canada | $368,936 | $371,063 | $363,654 | $325,612 | $320,298 | $314,540 | $338,522 | $327,899 | $323,537 | $332,825 | $349,364 | $343,271 | $356,831 | $350,281 | $360,986 | $360,597 |
| Victoria | $479,387 | $493,322 | $495,577 | $435,833 | $422,011 | $443,565 | $464,839 | $456,230 | $426,702 | $447,425 | $477,043 | $461,564 | $471,010 | $468,923 | $491,922 | $498,670 |
Scheduled monthly payments have been trending downward throughout 2025, reaching the average of $2,711 in Victoria by the end of Q4 2025.
| Q1 – 2022 | Q2 – 2022 | Q3 – 2022 | Q4 – 2022 | Q1 – 2023 | Q2 – 2023 | Q3 – 2023 | Q4 – 2023 | Q1 – 2024 | Q2 – 2024 | Q3 – 2024 | Q4 – 2024 | Q1 – 2025 | Q2 – 2025 | Q3 – 2025 | Q4 – 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| $2,013 | $2,201 | $2,514 | $2,498 | $2,513 | $2,623 | $2,754 | $2,844 | $2,685 | $2,684 | $2,819 | $2,681 | $2,643 | $2,579 | $2,714 | $2,711 |
Closing costs are one-time fees that property buyers must pay upon purchase. These costs may include:
Victoria imposes its land transfer tax by applying a tax-bracket system to the property’s purchase price.
Mortgage term and amortization period may seem like the same thing, but they are decidedly not. Here's the difference:
Mortgage term: The term is the amount of time certain conditions are locked in, such as your interest rate. Terms usually run from six months to 10 years, but five years is the most common mortgage term in Canada. By the end of the term, the mortgage must either be fully paid off or you must get a new term, with new conditions.
Amortization period: Amortization is the total amount of time it takes to pay off your mortgage in full. In Canada, an amortization period can be up to 30 years. If your down payment is less than 20%, the maximum amortization period allowed by the Canada Mortgage and Housing Corporation (CMHC) is generally 25 years.
However, first-time buyers and buyers of newly built homes can qualify for a 30-year amortization on an insured mortgage. A shorter amortization period means your monthly payments will be higher, but you’ll pay less interest. A longer amortization period means your payments will be lower, but you’ll pay more toward interest charges over the life of your mortgage.
An open mortgage gives you more flexibility to change the conditions of your mortgage. For instance, you could opt for an open fixed-rate mortgage, so that if you decide to switch to a variable-rate mortgage, you won't pay a penalty. Essentially, you get more freedom with an open mortgage. However, that freedom comes at a cost. Interest rates tend to be higher for open mortgages.
Closed mortgages, as their name suggests, are more restrictive. You’ll pay higher penalties if you decide to break or refinance your mortgage early. However, closed mortgages have lower interest rates as the lender knows you’re less likely to surprise them with a change given the costs.
Most people opt for closed mortgages when shopping for home mortgage rates in Victoria.
It matters a lot. Given the high cost of housing in the city, you can save a substantial amount of money by taking the time to find the lowest mortgage interest rate in Victoria.
Here’s an example. Say you’re buying a $1 million house. You decide to put down 20% so that you can save on monthly insurance costs and get a conventional rate mortgage. You opt for an amortization period of 25 years.
Now let’s take some time to calculate your mortgage in Victoria. Let’s say you walk into your local bank branch and you get offered a 5-year fixed mortgage, with a 2.5% rate. Your monthly payment would be $3,584, or about $43,008 a year.
But let’s say you go to LowestRates.ca, where you are offered a better rate of 1.74%. Suddenly your monthly payment is down to $3,288, or $39,456 a year.
That’s an annual savings of $3,552.
All it took was a few minutes to shop the market. Make sure you compare mortgage rates in Victoria.
LowestRates.ca works to bring you competitive mortgage rates from leading banks and brokers across Canada. 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.
Taras Trofimov
About the Author
Taras is the Content Manager for LowestRates.ca. He has produced thought leadership content for organizations like Constellation Software, Facebook and Yellow Pages as well as outlets like The Globe and Mail, Autoblog and MSN Autos.
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