Mortgage Update: BC, July–August 2026
Rates have stayed pretty calm through the summer. The Bank of Canada held its policy rate at 2.25% at its July 15 meeting, the sixth hold in a row, which kept the prime rate steady at 4.45% across the Big Six banks. That stability has carried into August, with the prime rate holding at 4.45% at all major lenders.For BC borrowers, that translates to the best high-ratio, 5-year fixed rate sitting around 4.04%, with 5-year variable rates near 3.4%, both broadly available across the province depending on your down payment and lender.Looking ahead, most economists expect the Bank of Canada to stay on hold at its next announcement on September 2. Interestingly, the conversation has started to shift: rather than debating further cuts, a growing number of institutions now see the next move as more likely to be a hike than a cut, largely tied to energy prices and trade-related cost pressures. That's a change from the "rates are coming down" narrative many buyers have gotten used to over the past couple of years.
- If you're renewing soon, especially if your current mortgage was set up in 2021 or earlier, it's worth having a rate conversation well before your renewal date. Locking in early can protect you if rates do start to tick upward, and most lenders will let you secure a rate 90 to 120 days ahead of renewal.
- If you're deciding between fixed and variable, the gap between the two has narrowed. With variable sitting close to fixed and rates expected to hold steady rather than fall further, some of the usual appeal of variable (waiting for future cuts) is less certain this time around. It's worth running the numbers on both with your broker rather than assuming one is automatically better.
- If you're a first-time buyer, it's a good moment to get pre-approved so you know your budget with confidence, especially with rates holding steady rather than moving unpredictably month to month.
- If you have a HELOC or line of credit, it's tied directly to prime, so no change there for now, but worth keeping an eye on given the shifting rate outlook.
If you're weighing a purchase, renewal, or refinance, it's a good time to check in with your mortgage broker to see how current rates and terms line up with your specific goals.
