On June 10th, The Bank of Canada held its target for the overnight rate at 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%.
This marks the fifth consecutive rate hold in a row, which started in December 2025.
The bank seeks to balance economic turbulence while keeping inflation from rising too much.
The news means no change for Canadian homeowners on variable mortgage rates and borrowers holding home equity lines of credit (HELOCs), while bond yields are unlikely to shift significantly – likely meaning a similar picture for fixed rates.
The next Bank of Canada interest rate announcement is July 15th, 2026.
If you are deferring your property taxes, or are thinking about it, you need to be aware of the changes being made to the program by the Government of British Columbia. Starting in 2026 and for subsequent tax years, the interest will now be compounded. This means that every month you will be charged interest, and the next month that interest will have interest charged on it. Please look carefully at the information provided on gov.bc.ca using the link provided here .
Here is everything buyers, sellers, and investors need to know about the housing market in Canada this spring.
Rates: The Bank of Canada’s March 18th announcement held the overnight rate at 2.25%, the Bank rate at 2.5% and the deposit rate at 2.20%. Mortgages are unlikely to see further rate decreases, so now is a good time to buy or refinance for 3 or 5 year terms. Variable rates may see a series of increases over the next two years.
Canadian Real Estate Association: According to CREA, 2026 started off with a decline in national homes sales.
CREA’s Senior Economist Shaun Cathcart stated, “The monthly decline in national home sales was driven primarily by less activity in the Greater Golden Horseshoe and Southwestern Ontario, suggesting that the story was probably more about a historic winter storm than a downshift in demand.”
2026 is expected to be defined by first-time buyers aged 25-40 years old, who have been waiting to enter the market.
Buyers entering the market this spring have more of an advantage compared to spring of 2025, due to lower borrowing costs, more stable prices, and choice.
Canadian Mortgage and Housing Corporation: CMHC expects British Columbia’s economy to improve in 2026 after limited growth in 2025; a weakened labour market and trade volatility being the main factors hindering B.C.’s economy in 2025.
Resale prices in Vancouver and Victoria have remained relatively stable, in comparison to the declines in Toronto. With recent price declines, and lower mortgage rates have made home ownership more favourable.
I just got back from Century 21’s annual conference where I got to hear CREA Economist Shaun Cathcart speak. The Canadian Real Estate Association is predicting interest rates to start going up by the end of the year. If you have a variable interest rate on your mortgage, I’m going to suggest locking in now.
Not expecting big changes and you can see on the photo above but nevertheless, this will be the lowest we will see them for a while.
For any other mortgage questions, feel free to reach out! Always happy to point you in the right direction to one of my trusted mortgage contacts.
As we begin 2026, the Vancouver Island real estate market has settled into a more balanced and predictable rhythm. After several years of shifting interest rates, tight inventory, and heightened uncertainty, the market now feels calmer, more thoughtful, and less reactive overall.
Mortgage rates have stabilized, giving buyers the ability to plan with greater confidence. While rates remain higher than the historic lows of the pandemic years, they are now more sustainable, and prices across many housing segments have softened or moderated accordingly. This combination has created healthier conditions for both buyers and sellers.
As of the most recent mortgage rate comparisons in British Columbia, conventional five-year fixed mortgage rates are sitting in the low-to-mid 3% range, with the lowest rates roughly 3.65%–3.89%, depending on lender and borrower qualifications. Variable mortgage options are often slightly lower, hovering around 3.4%–3.9%, according to WOWA’s financial data.
On the policy side, the Bank of Canada’s overnight rate has been held at 2.25% again, a move aimed at improving and maintaining affordability and encouraging market participation. The next Bank of Canada rate announcement is now scheduled for March 18, 2026.
Buyer behaviour has also evolved. Today’s buyers are taking more time, asking better questions, and prioritizing long-term affordability and lifestyle fit. Conditional offers are once again the norm, and thoughtful decision-making has replaced the urgency seen in recent years. At the same time, inventory levels are more balanced, providing buyers with choice while still supporting steady sales activity.
What hasn’t changed is Vancouver Island’s strong lifestyle appeal. Our region continues to attract buyers drawn to its natural beauty, outdoor recreation, and relative affordability compared to larger urban markets. Neighbourhood-specific trends remain important, and homes that are well-priced, professionally presented, and supported by a clear marketing strategy continue to stand out.
For buyers, 2026 offers an opportunity to move forward with less pressure and greater clarity. For sellers, realistic pricing, strong presentation, and strategic marketing are key to achieving successful results. Overall, this year is shaping up to be one of steady momentum, balanced opportunity, and informed decision-making in the Vancouver Island real estate market.
If you’d like to talk through how these trends relate to your own property, your home search, or your next steps, I’m always happy to connect. Feel free to call, text or email, and we can set aside time for a thoughtful, no-pressure conversation.
If you haven’t already heard, here’s some very exciting news about Property Transfer Tax Exemptions in BC. Effective April 1, 2024, the first-time home buyers’ exemption threshold has been increased so that eligible first-time home buyers are exempt from the tax if they buy a home with a fair market value of up to $835,000. This is an increase from the previous threshold of $500,000. The exemption applies to the first $500,000, with a phase-out range of $25,000 above the threshold. The exemption is completely eliminated at $860,000.
Effective April 1, 2024, the newly built home exemption threshold has been increased from $750,000 to $1,100,000. The phase-out range is $50,000 above the threshold, and the exemption is completely eliminated at $1,150,000. This exemption applies to qualifying purchasers of a principal residence who meet the eligibility criteria.
Big news for homebuyers! The Provincial Government released its 2024 Budget last month and there’s some very exciting news involving Property Transfer Tax Exemptions. Long overdue in my opinion!
Effective April 1, 2024, the first-time home buyers’ exemption threshold will be increased so that eligible first-time home buyers are exempt from the tax if they buy a home with a fair market value of up to $835,000. This is an increase from the previous threshold of $500,000. The exemption will apply to the first $500,000, with a phase-out range of $25,000 above the threshold. The exemption will be completely eliminated at $860,000.
Effective April 1, 2024, the newly built home exemption threshold will be increased from $750,000 to $1,100,000. The phase-out range is $50,000 above the threshold, and the exemption is completely eliminated at $1,150,000. This exemption will apply to qualifying purchasers of a principal residence who meet the eligibility criteria.
