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This article has been updated from a previous version. The importance of ‘the home’ cannot be overst...
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Compare mortgage rates in Victoria
Getting ready to apply for a mortgage in Victoria? Or maybe you already have one and want to renew at the end of your term. Luckily for you, LowestRates.ca can help you find some of the most competitive mortgage rates in Victoria.
Borrowing costs are at historic lows, so now is a great time to shop for a mortgage. See just how low today’s rates can go by applying for a quote. Read on to find out how to get the best mortgage rates in Victoria.
The best current mortgage rates in Canada
Check out today's best mortgage rates in Canada by type and term.
Rates are based on an average mortgage of $300,000
| 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 4.99% | 80% LTV 5.6% | 65% LTV 5.6% | Uninsured 5.99% | 7.49% | ||
Insured 6.09% | 80% LTV 5.64% | 65% LTV 5.64% | Uninsured 6.34% | 7.09% | ||
Insured 5.64% | 80% LTV 5.69% | 65% LTV 5.69% | Uninsured 5.79% | 6.7% | ||
Insured 5.49% | 80% LTV 5.59% | 65% LTV 5.59% | Uninsured 5.54% | 6.49% | ||
Insured 5.34% | 80% LTV 5.49% | 65% LTV 5.49% | Uninsured 5.49% | 5.84% | ||
Insured 5.49% | 80% LTV 5.44% | 65% LTV 5.44% | Uninsured 6% | 6.7% | ||
Insured 6.14% | 80% LTV 6.14% | 65% LTV 6.14% | Uninsured 6% | 7.25% | ||
Insured 6.1% | 80% LTV 6.5% | 65% LTV 6.5% | Uninsured 6.1% | 8.6% | ||
Insured 5.95% | 80% LTV 6.1% | 65% LTV 6.1% | Uninsured 6.1% | 6.95% | ||
Insured 7.2% | 80% LTV 7.2% | 65% LTV 7.2% | Uninsured 7.2% | N/A | ||
Insured 6.99% | 80% LTV 7.44% | 65% LTV 7.44% | Uninsured 7.49% | N/A |
Variable Rates
As low as
6.05%
Fixed Rates
As low as
5.44%
Cha-ching! Our rates are always lower than the posted bank rates.
Current lowest posted bank rate
7.49%
Conventional vs. high-ratio mortgages: which is cheaper?
This is a bit of a tricky question to answer. You’ll get a lower interest rate with a high-ratio mortgage because if you put down less than 20%, you’ll be required to get mortgage default insurance from the Canadian Mortgage and Housing Corporation (CMHC). That protects the lender if you stop making mortgage payments one day. On the other hand, a conventional mortgage (one with a down payment of 20% or more), will have a higher rate. However, your monthly payment might be lower since you are borrowing less money. Check out the graph below detailing today’s mortgage rates in Victoria to get an idea of the difference.
Conventional 5-year fixed mortgage rates vs. high ratio 5-year fixed mortgage rates in British Columbia
| Date | Average Conventional Rate | Average High Ratio Rate |
|---|---|---|
| 12/22 | 5.23% | 4.78% |
| 01/23 | 5.18% | 4.73% |
| 02/23 | 5.10% | 4.66% |
| 03/23 | 5.12% | 4.71% |
| 04/23 | 4.84% | 4.49% |
| 05/23 | 4.78% | 4.43% |
| 06/23 | 5.35% | 4.98% |
| 07/23 | 5.56% | 5.17% |
| 08/23 | 5.84% | 5.45% |
| 09/23 | 6.16% | 5.70% |
| 10/23 | 6.51% | 6.12% |
| 11/23 | 6.44% | 5.94% |
Last Updated: December 1, 2023
Fixed rate vs. variable rate mortgages: which is cheaper?
Here’s a simple answer: variable rates are historically lower than fixed rates. Since 2019, however, there have been periods where fixed and variable mortgages have been on par with each other. Check out the graph of current mortgage rates in Victoria below to see the difference yourself.
5-year fixed vs. 5-year variable mortgage rates in British Columbia
| Month | Fixed | Variable |
|---|---|---|
| 12/22 | 5.00% | 5.38% |
| 01/23 | 4.90% | 5.67% |
| 02/23 | 4.86% | 5.91% |
| 03/23 | 4.95% | 5.95% |
| 04/23 | 4.68% | 5.94% |
| 05/23 | 4.63% | 5.80% |
| 06/23 | 5.04% | 6.08% |
| 07/23 | 5.34% | 6.41% |
| 08/23 | 5.60% | 6.44% |
| 09/23 | 5.80% | 6.52% |
| 10/23 | 6.08% | 6.62% |
| 11/23 | 5.99% | 6.66% |
Last Updated: December 1, 2023
Factors that affect your Victoria mortgage rate
There are many factors that affect mortgage rates in Victoria, B.C. 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, Canada.
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Typical mortgage amount in Victoria
Victoria is one of the more expensive housing markets in Canada, so it’s natural that you’ll be carrying a large mortgage amount unless you have a big down payment. Read on to find out how Victoria’s housing market will impact your mortgage amount and that affects the average mortgage rate in Victoria.
Victoria’s housing market and home prices
Victoria has one of the most temperate climates in the country, and it’s a popular retirement destination. So it’s no surprise that Victoria is not a cheap city for housing. And that has a big impact on mortgage interest rates in Victoria.
According to the Victoria Real Estate Board, the average single-family home in the city costs $932,000 as of January 2021. This represents an 8.3% increase in prices when compared to prices a year ago.
Meanwhile, the average condo in the city costs $518,800. Condo prices actually fell 0.9% in January 2021 when compared to a year earlier (good news for those looking for a deal).
Based on our data, the average B.C. homeowner puts down a 21.85% down payment when they buy their property. This is one of the highest down payment rates in Canada.
That helps us figure out a typical mortgage amount for someone buying in Victoria. If you put down 21.85% on a $932,000 home (that’s a $203,642 down payment), you’ll need a $728,358 mortgage.
For condos, 21.85% down on a $518,000 property nets out to a $113,183 down payment, meaning you’ll need a mortgage of $404,817.
We hope you find this information useful as you work to find your best mortgage rates in Victoria, B.C.
Victoria closing costs and land transfer tax
There are a number of closing costs to keep in mind when you’re buying property. Before you bid on your dream home, you need to know whether you can afford them. Let’s run through some of these costs.
Home inspection: This is an important cost if you’re buying a house. Your offer may be conditional on a home inspection to make sure there are no unforeseen problems.
Legal fees: You’ll need to pay a lawyer to review your documents, handle registration and land title search as well as any legal questions you may have stemming from the sale. This can cost upwards of $1,000.
Property insurance: Most mortgage lenders require you to get condo or home insurance when you buy a property.
Mortgage insurance: If you put down less than 20%, you’ll be required to register and pay for this insurance. Mortgage companies in Victoria can help you figure out this cost.
Property transfer tax: In B.C., you must pay a transfer tax of 1% on the first $200,00 of a home’s fair market value and 2% on the rest. Fair market value refers to what the house would sell for on the open market. Usually, it’s quite close to what you will end up paying.
Misc. costs: You’ll have to make sure you’ve saved up for additional costs such as moving, painting the home, new hook-up fees for internet, cable or hydro and any outstanding costs, such as GST.
Your questions about Victoria mortgages, answered.
What’s the difference between a mortgage term and an amortization period?
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.
What’s the difference between an open mortgage vs. a closed 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.
How much does it cost to live 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.
How much does getting a lower interest rate matter 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.
Your questions about LowestRates.ca, answered.
How are mortgage rates determined on LowestRates.ca?
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.
Is it safe to get a mortgage online?
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.
How do I know I’m getting the lowest rate?
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.
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