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Rates in Surrey

Current Mortgage Rates in Surrey

As of Friday, October 9, 2026, current interest rates in Surrey are 4.59% for a 5-year fixed mortgage and 4.64% for a 3-year fixed mortgage. Shop around for mortgage rates to find the best offer.

High interest rates continue to make it challenging to qualify for a mortgage, making it harder for Surrey residents to afford a home. While it’s almost impossible to predict when rates will come down meaningfully, experts forecast that we should expect a gradual reduction over the next few years. 

Home prices remain high, with CREA reporting that the national average home price decreased 3.3% year-over-year to $665,600 in $657,500 $657,500. As for British Columbia’s largest city, the average selling price of a home in Vancouver decreased 6% year-over-year to $1,099,100.

Surrey Mortgage Rate Trends: October 2026

Bank of Canada Rate Announcement

The Bank of Canada (BoC) held its policy rate at 2.25% at its September 2 announcement, a seventh consecutive hold. In its accompanying statement, the Bank pointed to a recovery that is broadening across the economy. It reiterated its commitment to bringing inflation back to its 2% target, while noting that upside risks to inflation have increased as Middle East oil prices and refinery margins stay elevated. The Bank’s summary of deliberations, published September 16, added a conditional warning: spillover from higher energy prices into other prices could require a policy response.

Bond markets put the odds of a 25-basis-point hike at the Bank’s October 28 announcement at 35%, against 65% for a hold. The odds shift by December 9, following another inflation report and the Bank’s October Monetary Policy Report, and markets imply 99% for a hike by then.

A Bank of Canada decision affects fixed and variable mortgages differently. If you hold a variable-rate mortgage (VRM) or an adjustable-rate mortgage (ARM), a rate change flows through directly, adjusting your principal-and-interest split (VRM) or your monthly payment itself (ARM), within days of your lender updating its prime rate. If you hold a fixed-rate mortgage, nothing changes until your term ends, since your rate and payment are locked for the full term. Either way, the next decision, on October 28, is the one to watch if you’re renewing or shopping for a new mortgage soon.

GDP and Jobs Update

Statistics Canada reported that real GDP was unchanged in July, after June was revised up to 0.4%, and its advance estimate points to a 0.2% gain in August. Second-quarter growth stands at an annualised 3.3%, and first-quarter growth was revised to an annualised gain of 0.3%, so Canada did not enter a technical recession. The labour market has cooled: the Labour Force Survey showed employment down 42,000 in August while the unemployment rate held at 6.4%, and average hourly wages rose 2.0% from a year earlier, the slowest pace since 2017 outside the pandemic, according to BMO. September jobs data arrive on October 9, and August GDP follows on October 30.

Real Estate Market Update

The Canadian Real Estate Association (CREA) reports that national home sales fell 0.7% month over month in August 2026 on a seasonally adjusted basis, leaving activity roughly flat for a fourth straight month, with 37,504 actual sales, down 6.9% from August 2025. New listings rose 3.3% from July, ending 3 straight monthly declines, and the sales-to-new-listings ratio sat near 49%, in balanced territory but below its long-term average of 54.7%. The national average home price was $668,219 in August, up 0.6% from a year earlier, while the MLS Home Price Index was unchanged from July and down 3% year over year. Inventory stood at just under 200,000 properties, up 1.4% from last year. RBC Economics reads the August dip as a temporary detour and expects stabilisation across the second half of 2026 and into 2027, though higher fixed rates are the main new pressure on first-time buyers. CREA releases its September figures in mid-October.

CPI Inflation Update

Inflation held at 3.0% year-over-year in August, matching July. Gasoline price growth slowed to 22.8% year-over-year from 25.7% in July, pulling down the all-items figure, while higher prices for travel tours and rent pushed it back up. Excluding gasoline, inflation rose to 2.4% after 3 consecutive months at 2.2%, and the Bank’s core measures stayed near target, with the trimmed-mean rate at 1.9% and the median rate at 2.0%. Travel tours climbed 26.1% on a base-year effect, and rent accelerated to 2.8% from 2.5%. Food price growth slowed to 2.8% year-over-year from 3.0% in July, falling below the all-items rate for the first time since July 2024. September figures are released on October 19.

Mortgage Statistics for British Columbia

Home prices in British Columbia have nearly doubled in the last 10 years. Here are some mortgage statistics for the housing market in the province:

• Average home value in British Columbia (as of $657,500 $657,500): $889,800 (CREA)
• Canadian homeownership rate (as of 2021): 66.5% (StatsCan)
• Number of home sales in Vancouver (as of $657,500 $657,500): 2,061 (GVR)
• Number of new listings in Vancouver (as of $657,500 $657,500): 4,991 (GVR)

Mortgage Options in Surrey

Surrey conventional mortgage: Conventional or uninsured mortgages require a 20% or more downpayment. Mortgage default insurance is not required, as the equity from your downpayment is enough to protect the lender. There is no limit on the purchase price of a home with an uninsured mortgage, allowing you to purchase homes valued at $1 million or more. With conventional mortgages, you can extend the amortization to 30 years with prime lending.    

Surrey high-ratio mortgage: High-ratio or insured mortgages allow you to purchase a home with less than 20% of the purchase price as a downpayment. Mortgage default insurance is required to reduce the lender’s risk if you default on payments. Borrowers are limited to a maximum purchase price of less than $1 million and an amortization of 25 years. 

Surrey fixed-rate mortgage: Fixed-rate mortgages lock in your interest rate for the term. This provides stable and predictable mortgage payments with a set principal and interest paid throughout the term. Penalties on fixed-rate mortgages are calculated based on the higher of the interest rate differential (IRD) or 3 months’ interest. 

Surrey variable-rate mortgage: Variable-rate mortgages have interest rates that fluctuate based on the Bank of Canada policy rate. Adjustable-rate mortgages (ARM) are variable mortgages that immediately adjust your mortgage payment to reflect your lenders’ prime rate when rates change. The principal portion remains fixed, while the interest can increase or decrease based on changes to the prime rate. Variable-rate mortgages (VRM) are variable mortgages that have fixed mortgage payments despite changes to your lenders’ prime rate. The principal and interest proportions will adjust with more going to interest and less to principal if the prime rate increases or more going to principal and less to interest if the prime rate decreases. 

What Affects My Mortgage Rate in Surrey

Mortgage rates are priced based on the risks associated with the mortgage, the property used as collateral, and the borrower. The specific mortgage rate you are offered will be based on various personal factors like your credit score, income, capital, downpayment, loan purpose, and loan-to-value (LTV) ratio. Some of the most important determining factors affecting your mortgage rate include:

• Downpayment – Your downpayment determines your LTV ratio and whether you will be required to purchase mortgage default insurance. Insured and insurable mortgages have better rates as there is lower risk to the lender. These rates apply to properties valued at less than $1 million with amortizations up to 25 years. 
• Amortization Period – With prime lending, the amortization period cannot exceed 30 years on uninsured mortgages with a downpayment of 20% or more. Uninsured mortgages typically have higher interest rates to account for the added risk to the lender. On mortgages with less than a 20% downpayment, the maximum allowable amortization is 25 years. 
• Property Usage – Your primary residence, known as owner-occupied, generally has lower interest rates. Investment properties you intend to rent will typically have higher interest rates. Purchasing a primary residence with a second separate legally registered suite is considered an owner-occupied rental and will have access to the same rates as a primary residence. 
• Mortgage Type – The type of mortgage will affect your mortgage rate. Open mortgages have higher rates due to their flexibility. Refinances have higher rates than renewals and new mortgages. 
• Your Credit Score – The type of lender that approves you for a mortgage will be determined based on your credit score. If you have good to excellent credit, you can typically use prime lending and benefit from the best rates. If you have poor credit, you may need to look at alternative lending solutions with higher rates to offset the lender’s risks. 

First-Time Home Buyer Programs in British Columbia

• Land Transfer Tax Refund (LTTR) – When you purchase your first home, this refund helps reduce or eliminate the property transfer tax you must pay. 
• First-Time Homebuyers Tax Credit (HBTC) – a federal government program that allows first-time buyers to claim up to $10,000 for a maximum $1,500 tax credit to help offset closing costs. 

Land Transfer Tax in British Columbia

British Columbia has a Property Transfer Tax (PTT) calculated based on the property’s purchase price.  The rate is calculated as:

• 1% of the fair market value up to and including $200,000
• 2% of the fair market value greater than $200,000 up to and including $2,000,000
• 3% of the fair market value greater than $2,000,000

A further 2% tax is applied to the residential property value greater than $3,000,000 on properties with a fair market value over $3,000,000. 

How to Find the Best Mortgage Rate in Surrey

• Step 1: Understand your credit score:  Before looking for a mortgage lender or applying for a mortgage, check your credit score regularly. This will help you immediately report and remedy errors that could negatively affect your score. If necessary, improve your credit score to help with your mortgage approval.
• Step 2: Determine your borrowing capacity: To find the right mortgage solution, you’ll need to know how much house you can afford based on your income and downpayment. 
• Step 3: Know your mortgage needs: Analyze different mortgage solutions’ features, risks, and costs. Careful research and comparisons of the available options can help you choose a mortgage that best meets your immediate and long-term financial needs.
• Step 4: Find a suitable mortgage strategy: Get expert guidance to choose the best strategy for your homeownership goals. Your mortgage strategy shouldn’t just be based on the lowest rate.
• Step 5: Compare rates and terms: Not all mortgages are equal. Choosing a lender like nesto for your mortgage can help you compare rates and terms for multiple lending solutions, ensuring you find the best fit. 
• Step 6: Get prequalified for a mortgage: Begin your journey towards homeownership by taking advantage of nesto’s prequalification process. By analyzing your downpayment and financial stability, nesto will provide you with a comprehensive prequalification outlining the maximum mortgage amount you can qualify for. This information is crucial as it helps you set realistic expectations and narrow your search for a suitable home within your budget.