Compare The Best Mortgage Rates In Victoria

Your Guide To Getting The Best Mortgage Rates In Victoria

The relatively tiny town of Victoria is where most homeowners like to live. Retirees seeking a comfortable environment and a variety of amenities are particularly fond of it. However, the city’s high housing values have fueled competition in the mortgage industry, which has resulted in competitive rates. Comparemortgages.ca is your one stop shop for the best mortgage rates in Victoria, BC, no matter where you live in Canada. Get the best rates right away on mortgages, whether fixed or variable, ranging from 1 to 10 years term.

About Victoria

Victoria, the provincial capital of British Columbia, is located at the rugged southern tip of Vancouver Island.

It is well-recognized for outdoor activities and has a lot of parks. The Victorian architecture of the city, particularly the opulent Craigdarroch Castle residence, is a legacy of its British colonial heritage. One of the numerous formal gardens in the city is Butchart Gardens, which has 55 acres of vibrant flower displays, sculptures, water features, and a carousel. The population of Victoria is about 385,999.

Compare Victoria Mortgage Rates

Below is a table displaying the best rates from the five largest banks in the country. You can easily compare the rates offered by major Canadian lenders and banks, including TD Bank, RBC, CIBC, HSBC, and Scotiabank. We take care of the research to guarantee you the lowest possible rates upfront every time.

Compare Big Bank Rates In Victoria

It can be time-consuming and frustrating to compare rates by yourself. With us, you can find everything you need in one convenient location. Also, ensure that you consider the mortgage product term length and type when comparing rates. For instance, if you are in the market for a fixed-rate mortgage, it is essential to examine the range of terms given by various banks, such as three-year and five-year offerings, and not just the interest rate.

About the Victoria Housing Market

After a difficult couple of years, the housing market in Victoria has partly steadied. The COVID-19 epidemic brought a period of limited housing supply while demand remained high in Victoria. During this time, interest rates reached record lows, which encouraged many homebuyers to consider moving. However, those interest rates are predicted to increase in the future, which would assist in moderate demand.

However, some prospective homebuyers are currently out of the market due to historically high property costs. With an average price of $1.2 million in early 2022, homes finally cost more than $1 million for the first time. This is mostly caused by a rise in the area’s luxury house sales.

Victoria Closing Costs

Homebuyers need to finish legal documentation before packing up and moving property to the new house. Due to the high cost of homes in British Columbia, you may discover that these prices are greater than you would spend elsewhere. For example, the $8,000 property transfer tax on a $500,000 home would be $18,000 for a residence costing $1,000,000 or more.

However, if you are fortunate enough to find a property for $500,000, the closing expenses will most likely be comparable to what you would pay in other parts of British Columbia. The cost of the house inspection can be a little more, but you can shop to see if you can find a good deal.

In addition to the down payment you will need to pay, your lender will confirm in advance that you have the cash available to meet your closing fees. You must make the required payments as instructed before closing. Typically, lenders ask you to send the fees to an escrow business, which ensures the money gets to the right place.

If your property costs $500,000, you should anticipate paying between $9,400 and $10,000 at closing as the buyer overall. To determine the precise amount you would owe, you need to modify the property transfer tax rate in accordance with the increased mortgage amount. Real estate agent commissions are typically paid by sellers; however, this can occasionally be negotiated before your offer is accepted.

Victoria first-time homebuyer rebates

This is a way of easing the financial burden of purchasing a property in Victoria. Tax credits and rebates are available to first-time homebuyers and those with retirement savings plans. You can be eligible for a tax credit for your purchase’s property tax if you’re purchasing a new house or one that has just undergone renovations.

  • RRSP Home Buyers Plan: For the purpose of paying for a house, Canadians with registered retirement savings plans may be eligible to withdraw up to $35,000 from their accounts.
  • First-Time Home Buyer’s Tax Credit: You may be eligible for a tax credit of up to $5,000 if this is the first house you or your partner have purchased in the last five years. Simply claim the credit when you submit your taxes for this year.
  • GST/HST: The GST might be intimidating when buying a house in Victoria. Check to discover if you are eligible for the GST/HST new housing refund if you are purchasing a newly constructed or recently renovated property.

Victoria Mortgage Brokers

Searching for a home in Victoria? It’s essential to talk to a market expert who can guide you through the Victoria mortgage rates. Don’t hesitate to fill out an online application; one of our partners will be pleased to assist you in locating the perfect mortgage in Victoria. 

What Affects My Mortgage Rate in Victoria?

Each lender determines its mortgage rates in Victoria, BC. The rate is usually determined by the state of the market. However, the rate you pay will be different from the rate other borrowers at the same lender pay. This is so that the lender can analyze your risk, including income and creditworthiness. Here are a few factors that will influence your Victoria mortgage rate.

Down Payment

Your down payment determines whether you will have to pay mortgage default insurance alongside your recurring mortgage payments. If you make a down payment of less than 20% of the property’s value, you must pay mortgage default insurance.

Amortization Period

Suppose you opt for an amortization period (mortgages with less than 20% down payment have a maximum period of 25 years, while mortgages with down payments of 20% or higher have a maximum period of 30 years). 

In that case, you pay a lower amount as a mortgage since it is spread out for a longer period. A more extended amortization period features higher interest rates as well. Generally, the longer you take while paying off your mortgage, the more interest you will have to pay.

Property Usage

A primary residence, or an owner-occupied home, is one that you plan on living in and qualifies for the most desirable mortgage rates due to the lender’s assumption that you will prioritize payments on this property over any other investments. On the other hand, if you are looking to buy as an investment and turn it into a rental property, interest rates may be higher because of a greater perceived risk by lenders.

Mortgage Type

Your mortgage rate would also be impacted by your choice of mortgage – such as open vs. closed or variable vs. fixed. The choice of either option is personal and usually dependent on several factors. For instance, open mortgages would feature a higher rate than closed mortgages due to the flexibility that borrowers enjoy since they can choose to pay off their mortgage anytime without a penalty. Similarly, fixed-rate mortgages have steady payments but higher penalties for breaking your mortgage than variable-rate mortgages.

Your Credit Score

Borrowers with a credit score of 680 and above are regarded as the ideal candidate for a traditional mortgage lender. The higher above 700 the score is – with a maximum score of 900, the better the chances of getting the best rates.

How to Apply for a Mortgage in Victoria

Nowadays, applying for a mortgage may be done entirely online. From the convenience of your home, you can compare Victoria mortgage rates and become prequalified. However, It’s helpful to understand the procedure beforehand.

Meet with a mortgage expert

The application process can begin without you meeting with a mortgage specialist. Obtaining a quotation and preauthorization letter is entirely online. However, speaking with a mortgage specialist will help you completely comprehend the distinctions between the various mortgage kinds and the amount of property you qualify for.

Acquire all necessary documents.

Lenders can only afford to rely on borrowers’ statements about their jobs, earnings, obligations, and other important details. You’ll need to present the lender with proof that you’ll be able to pay back the loan. Paystubs or, if you’re self-employed, tax returns for two or three prior years will likely be requested from you. Additionally, bank statements and certified copies of court orders may be requested. Upon request, you must be able to retrieve this data quickly.

Apply for mortgage financing.

Before starting your house search, being prequalified is the finest thing you can do. If you’ve done that, all that’s left to do is submit your application to the lender who prequalified you. But you’re not obligated to use that lender forever. You can always reapply with the new lender if you discover a lower mortgage in Victoria. Remember that a complete application will affect your credit score, whereas prequalification normally has no effect.

Sign & finalize your mortgage.

Your real estate agent will set a closing date once your financing is in place. Your lender will ensure all the documentation is to complete your loan as that day draws near. You will meet with a loan representative and your real estate agent on the selected day to sign all the necessary paperwork. By doing this, the seller will hand over the property to allow you to move in.

Learn About Rates & Mortgages In Victoria

If you’re looking to buy a home in Vancouver, you can save some by exploring or shopping around to get the best mortgage rates in Vancouver. We often get asked a number of questions by potential homebuyers all over Vancouver, and we have compiled these questions and the answers to them in our frequently asked questions section.

Why compare Victoria mortgage rates on Compare Mortgages?

Comparing mortgage rates in Victoria on Compare Mortgages guarantees that you get the most recent rate information, which can effectively help you save on your mortgage throughout your homeownership journey. 

When you are comparing mortgage rates in Victoria, ensure that you evaluate similar mortgage types (variable rate vs fixed rate) and terms (three or five years) so that you are not simply looking at rates; you are comparing similar products.

Mortgage rates and features see variations based on the specific lender, therefore, you would only get a clear comparison by evaluating similar offerings. 

Are Victoria mortgage rates higher than other cities?

Victoria mortgages today would see variations based on the lender or bank offering the product. With Compare Mortgages’ advanced technology, we get an accurate overview of the entire market at any point in time to guarantee that you always have access to the most current mortgage rates in Victoria. This way, you are able to make guided decisions about whether to leave your rate or lock it in. 

Should I get a fixed-rate or variable-rate mortgage in Victoria?

The choice of a variable rate, like the 5-year variable rate in Victoria or the fixed-rate mortgage hinges on how much risk you can tolerate and your level of comfort. 

If you have a preference for being able to know ahead how much mortgage payments you would be making monthly, then a fixed rate would be a good call given that payments remain the same. A fixed-rate remains the same through the term that you select (1-10 years).