Should You Wait for BC Mortgage Rates to Drop Before Buying?
It’s a question we hear all the time. The answer isn’t as simple as finding the lowest rate online.
In Episode 107 of *The Real Deal Pod*, Fraser Valley Realtor Allister Carrington and GLM Mortgage Group’s Geoff Lee explain what buyers need to know about today’s mortgage market. They also look at the latest CMHC housing forecast and what it could mean for buyers across BC.
The Lowest Mortgage Rate Online May Not Be Your Rate
Mortgage rates aren’t one-size-fits-all. As of August 21, 2026, BC mortgage rates can range from approximately 3.55% to 4.75%. Where you fall within that range depends on your specific mortgage.
Four important questions can affect your rate:
• What type of property are you buying?
• How much are you putting down?
• What amortization are you choosing?
• Will you live in the property or rent it out?
The answers help determine which mortgage options and rates are available to you. That’s why comparing your mortgage to an advertised rate online can be misleading.
Understanding the Four Mortgage Rate Categories
Canadian mortgages generally fall into four rate categories: insured, insurable, uninsurable, and investment properties. Within those categories, lenders can offer many different rates. The lowest advertised rate may only apply to a specific type of borrower or property. Your down payment, amortization and property use can all change the rate available to you. Before focusing on a number, make sure you understand which category your mortgage falls into.
Should You Wait for Lower Mortgage Rates?
Some buyers are still waiting for the ultra-low mortgage rates we saw during the pandemic. Those rates came during extraordinary economic conditions. Building a home-buying strategy around their return could mean waiting for something that may not happen. Instead, look at the complete picture. What can you comfortably afford today? What are homes selling for? How does the monthly cost compare with renting? Most importantly, does buying make sense for your long-term plans? A small change in rates may also have less impact than buyers expect. For example, a 0.25% rate increase on a $600,000 mortgage could mean roughly $83 more per month, depending on the mortgage terms.
What Could Happen Next With BC Housing?
Allister and Geoff also discuss CMHC’s mid-year 2026 housing forecast. The outlook shows different trends developing across BC and Ontario. BC housing starts are projected to decline toward 2028, while Ontario’s resale market is expected to strengthen. The episode looks at what may be driving that difference. It also explores how government housing policies can affect each market differently.
Renting vs. Buying in BC
Mortgage rates are only one part of the decision to buy. The cost of renting matters too. In some BC markets, the gap between renting and owning may be smaller than buyers assume. Long-term wealth is another consideration. The episode discusses CMHC research showing a significant net worth gap between homeowners and renters. That doesn’t mean everyone should rush out and buy a home. It does show why the decision should involve more than trying to perfectly time mortgage rates.
What You’ll Learn in Episode 107
• What CMHC’s mid-year 2026 housing forecast says about BC and Ontario
• Why advertised mortgage rates don’t apply to every borrower
• The difference between insured, insurable, uninsurable and investment mortgage rates
• How to determine which mortgage rate category you fall into
• Why waiting for pandemic-level mortgage rates may not be realistic
• How inflation can affect the Bank of Canada and variable mortgage rates
• What a 0.25% rate change could mean for your monthly mortgage payment
• Why buyers should consider more than the mortgage rate when deciding when to buy
• How the cost of renting compares with homeownership
• Why homeownership can play an important role in long-term wealth building
The Bottom Line
Don’t make your home-buying decision based on an advertised mortgage rate or a prediction about where rates might go next. Start with your own numbers. Understanding what you qualify for, which mortgage category you fall into and what you can comfortably afford gives you a much better foundation for making the right decision.
If buying makes sense today, waiting for the “perfect” mortgage rate could end up costing more than you expect.
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