Compare the best current mortgage rates in Victoria for free.

These are two terms that are commonly confused. Mortgage amortization is the total amount of time it’ll take to pay off your mortgage. In Canada, if the down payment is less than 20%, the longest your amortization can be is 25 years. If you put down 20% or more, you can stretch your amortization out to 30 years. This might be helpful in lowering your monthly payment if trying to stick to a budget.

A mortgage term, on the other hand, is the period of time during which the conditions of your mortgage are in effect. This includes your interest rate, any break penalties, and any privileges you have such as lump-sum payments.

Mortgage terms can range from one year or more than 10 years, with 5-year terms being the most popular in Canada. During your term, you’ll be tied to your current lender, and you’ll likely incur costs if you break your term. An important decision to make when choosing your term is whether you intend to stay at your home for the long-haul, or if you expect to make a change in the near future. For instance, if you’re buying a condo to live in for a few years before you make the jump to a house to start a family, you might want to consider a 3-year mortgage term over a 5-year term. Otherwise, you might pay a steep penalty when you break your term early.

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.

Victoria has a higher cost of living compared to most cities in Canada due to the high cost of rent and homeownership in the city. Victoria is a popular retirement destination, so it is constantly attracting new people.

As mentioned above, the average house in the city sells for slightly under $1 million, while condos average more than $500,000. Even if you secure a cheap house mortgage rate in Victoria, expect to pay a lot of money for it.

Auto insurance in Victoria is only offered by a provincial Crown corporation, the Insurance Corporation of British Columbia (ICBC), meaning you don’t have any alternatives if you find insurance too expensive.

Unfortunately, you’ll find that it’s not much cheaper to rent in Victoria. The city has the fourth most expensive rent for a one-bedroom apartment in Canada, according to a report from PadMapper in 2020.

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 50+ banks and brokers across Canada. 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.