TODAY'S
MORTGAGE RATES IN Victoria

Whether you're buying your first home or refinancing, it helps to know your options. In Victoria, you can choose from big banks, local credit unions, mortgage brokers, and private lenders. Each one works a little differently, and each has pros and cons.

Big Banks in Victoria

Familiar names like RBC, TD, Scotiabank, CIBC, BMO, and National Bank offer a range of fixed and variable rate options. They're convenient and easy to deal with if you already bank with them, but their rates aren't always the most competitive. It's always smart to compare.

Local Credit Unions

Victoria's credit unions, like Vancity, Coast Capital, Island Savings, and Community Savings, tend to focus on the local community. That often means more personalized service and mortgage options that suit Vancouver Island homeowners better than one-size-fits-all bank products.

Mortgage Brokers in Victoria

Brokers are your personal rate hunters. They work with dozens of lenders to find a mortgage that suits your needs, not those of the lenders. Victoria has many strong brokerages including Select Mortgage Corp., Olympic Mortgage, Auxilium Mortgage, Wise Victoria Mortgages. Brokers are great for first-time buyers or anyone with a more complex financial situation.

Alternative and Private Lenders

A private lender might be your best bet if your credit isn't great or your income isn't regular. These lenders are more flexible but usually charge higher interest rates. A good broker can help you find the right one if the traditional options aren't working for you.

How to Choose the Right Lender

Start by determining your budget, credit score, and the kind of payments that feel manageable. Then, compare what different lenders are offering. You can check online, ask a broker, or use a tool like EveryRate to compare. Reviews from other borrowers can also help, especially when considering service and support.

Victoria's housing market has been bustling. While it's not the most affordable, it has remained relatively stable, and 2025 is shaping up to offer strong opportunities for both buyers and sellers.

Victoria Housing Market in 2024: A Quick Recap

In 2024, home sales in Victoria jumped 11% from the year before. There were 6,893 homes sold, up from 6,297 in 2023. That boost in activity showed growing buyer confidence.

Home prices stayed steady. The benchmark price for a single-family home in the core of Victoria was $1,295,500 in June 2024, just slightly down from May. Condo prices ticked up a bit to $567,900 in the same month.

By December, the city had over 2,290 active listings, up 7.4% from the year before. That extra inventory gave buyers more choices and helped the market stay balanced.

Victoria's Housing Outlook for 2025

2025 is off to a strong start in Victoria's housing market. January saw 422 home sales, marking a 24% increase compared to January 2024. Prices are on the rise too, with the average price for a detached home reaching $1.27 million and the median price hitting $1.13 million.

New listings are also up, with over 1,000 new homes hitting the market in January alone – the highest number for that month in over a decade. Inventory has increased by 12% compared to last year, giving buyers more to choose from.

Lower interest rates from the Bank of Canada have helped boost demand, with buyers feeling more confident. We expect this momentum to continue through the year. While prices may rise around 4% overall, the increased inventory and favourable lending conditions mean it's not just a seller's market – buyers will still have opportunities.

Neighbourhood Spotlight

Looking for a place that fits your lifestyle and budget? Here are a few Victoria neighbourhoods worth watching:

• Oak Bay: High-end homes and quiet streets close to amenities. Great for buyers looking for luxury and character.

• James Bay and Fairfield: Walkable, charming, and popular with a wide mix of buyers and renters.

• Westshore (Langford & Colwood): More affordable homes with growing demand. A good choice for families and first-time buyers.

• Saanich East: Family-friendly with solid schools and easy access to downtown.

• Victoria West (Vic West): A mix of condos, townhomes, and retail. Urban feel with a strong sense of community.

• Fernwood: Artistic, historic, and a little offbeat. Great if you want a creative, close-knit neighbourhood.

• Rockland: Known for heritage homes and peaceful streets. Appeals to buyers who want space and greenery.

• Esquimalt: Waterfront access and more affordable homes close to downtown. Gaining popularity fast.

• Sidney: A coastal town with a relaxed vibe. Ideal for retirees or anyone wanting a slower pace.

• Central Saanich: Semi-rural and quiet, but still close to everything. Great for nature lovers.

• North Saanich: Large properties and ocean views. Perfect if privacy and space matter most.

• Metchosin: A rural retreat with a conservation focus. Quiet and surrounded by nature.

• Highlands: Rugged and private, yet still part of Greater Victoria. This is for buyers wanting space without moving far away.

• View Royal: Offers waterfront access and a mix of homes for different budgets.

What Does This Mean for You?

If you're planning on buying, this could be a good time to take action. More homes are on the market, prices are rising slowly, and mortgage rates have started to decrease.

If you're selling, demand is strong, but buyers have options. Homes that are priced right and are move-in ready are getting attention fast.

If you're buying your first home in Victoria, there are a few programs that can make it easier to manage the cost:

• BC First-Time Home Buyers' Program: Waives property transfer tax if the home is under $500,000. Partial discounts provided for homes up to $525,000.

• BC Home Owner Grant: Reduces your property tax by up to $570 if your home is under $2.175 million and is your main residence.

• Home Buyers' Plan (HBP): Lets you use up to $35,000 from your RRSP tax-free ($70,000 for couples). You'll repay it over 15 years.

• Tax-Free First Home Savings Account (FHSA): Save up to $40,000 tax-free for your down payment. Contributions are tax-deductible and withdrawals are tax-free.

• Newly Built Home Exemption: Waives property transfer tax for new homes under $750,000. Partial exemptions up to $800,000.

These programs can help stretch your budget and reduce what you owe upfront. It's smart to check your eligibility early so you can factor those savings into your purchase plan.