Mortgage Rates Victoria BC: What Buyers Need to Know in 2025

With the Bank of Canada lowering the policy interest rate to 2.25% and lenders reducing 5-year fixed mortgages to the low-4% range, many buyers are wondering what this means for mortgage rates in Victoria BC — and whether 2025 is the right time to buy.

This guide breaks down everything buyers need to know right now, including current rates, market trends, lender expectations, and what these numbers mean for affordability.

The Current Mortgage Rate Environment

As of November–December 2025:

• Bank of Canada rate: 2.25%

• 5-year fixed rates: 4.0%–4.3%

• Variable rates: 3.8%–4.1%
  (Source: Ratehub.ca, national lender averages)

This is the lowest level buyers have seen since early 2022 — and a major improvement in affordability for Victoria homebuyers.

Why Mortgage Rates Are Falling

The Bank of Canada has signaled confidence that inflation is stabilizing, stating that “monetary policy no longer needs to be restrictive.”

This shift is creating meaningful changes for buyers:

• Lower monthly payments

• Easier mortgage qualification

• Increased borrowing power

• More confidence entering the market

These changes are already influencing activity in the Victoria real estate market, which remains balanced with strong inventory heading into winter.

How Lower Mortgage Rates Affect Affordability in Victoria

With home prices stabilizing and borrowing costs decreasing, affordability has improved across the region.

Example:

A $700,000 mortgage at 5.5% (early 2024):
→ ~$4,280/month

A $700,000 mortgage at 4.1% today:
→ ~$3,380/month

Savings: nearly $900 per month.

This has a major impact on first-time buyers and upsizers.

Fixed vs Variable: What’s Better in 2025?

Fixed Rates

• More predictable

• Popular with first-time buyers

• Currently near 4%

Variable Rates

• Lower initial cost

• May decrease further if BoC cuts continue

• Better for buyers comfortable with fluctuations

Given the balanced market, both options offer strong value — but variable rates may outperform if further cuts occur in early 2026.

What Victoria Buyers Should Expect in 2025

Here’s what experts anticipate:

✔ More buyers returning to the market

Lower rates = higher demand, especially for condos and townhomes.

✔ Continued price stability

VREB data shows modest fluctuations but no volatility.

✔ Better negotiation conditions

Unlike 2021–2022, buyers now have time and leverage.

✔ Strong opportunity window for early 2025

If rates drop again, prices may edge upward by spring.

How Mortgage Rates Affect Different Property Types

Condos

Most sensitive to rate changes → expect increased activity in 2025.

Townhomes

Strong demand from families and upsizers.

Single-family homes

Higher price points → more rate-sensitive, but still stable.

Overall, the current rate environment favors buyers who want to move before spring competition increases.

Tips for Getting the Best Mortgage Rate in Victoria BC

1. Work with a mortgage broker

2. Improve your credit score

3. Increase your down payment

4. Compare rates weekly

5. Get pre-approved before shopping

6. Consider rate holds if cuts continue

These steps can save thousands over the life of your mortgage.

Is Now the Right Time to Buy in Victoria?

Rates are down, inventory is strong, and the market is balanced — a rare combination for Victoria. Buyers who enter the market during this calm period can secure:

• Better financing

• Better negotiating leverage

• More property choice

• Less competition

This window may close as rates continue falling and buyers return in greater numbers.

Work With a Local Expert

Understanding mortgage rates in Victoria BC is essential to making a confident purchase. As one of the top realtors in Victoria BC, Brad Maclaren works closely with trusted lenders to help buyers secure the best rates and identify opportunities across the region.

Whether you’re exploring condos, townhomes, or detached homes, Brad offers strategic guidance tailored to your goals

Contact Brad Today!