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Rates in Surrey

Today’s Mortgage

For a property located in
5-year variable* 4.80% (Prime -1.15%)
5-year fixed* 4.14%

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*Insured loans. Other conditions apply. Rate in effect as of today.

Compare current mortgage rates in Surrey

Explore the latest mortgage rates in Surrey to find the best deal for financing or refinancing your dream home.

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Current Mortgage Rates in Surrey

As of Saturday, December 7, 2024, current interest rates in Surrey are for a 5-year fixed mortgage and 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 2.7% year-over-year to $707,700 in October 2024. British Columbia’s average price decreased 2.45% year-over-year to $961,300. As for British Columbia’s largest city, the average selling price of a home in Vancouver decreased 1.9% year-over-year to $1,172,200.

What are today’s mortgage rates in Surrey?

The average 5-year fixed mortgage rate from big banks in Surrey is 4.99%*, while nesto’s lowest 5-year fixed mortgage rate in Surrey is .

The average 5-year variable mortgage rate from big banks in Surrey is 5.53%*, while nesto’s lowest 5-year variable mortgage rate in Surrey is

The average 3-year fixed mortgage rate from big banks in Surrey is 5.47%*, while nesto’s lowest 3-year fixed mortgage rate in Surrey is

The average 3-year variable mortgage rate from big banks in Surrey is 6.40%*, while nesto’s lowest 3-year variable mortgage rate in Surrey is .

Note: The average rate is calculated based on the posted rates of the six biggest lenders in Canada, which together make up over 70% of the retail mortgage market in the country. These six biggest lenders are the chartered banks Toronto-Dominion Canada Trust (TD), Royal Bank of Canada (RBC), Bank of Montréal (BMO), Bank of Nova Scotia (BNS), Canadian Imperial Bank of Commerce (CIBC), and National Bank of Canada (NBC).

What are the lowest mortgage rates in Surrey today?

The average 5-year fixed insurable mortgage rate in Surrey is currently 4.99%, while nesto’s lowest 5-year fixed mortgage rate is

The average 5-year variable insurable mortgage rate in Surrey is currently 5.53%, while nesto’s lowest 5-year variable mortgage rate is

The average 3-year fixed insurable mortgage rate in Surrey is currently 5.47%, while nesto’s lowest 3-year fixed mortgage rate is

The average 3-year variable insurable mortgage rate in Surrey is currently 6.40%, while nesto’s lowest 3-year variable mortgage rate is

The average 2-year fixed insurable mortgage rate in Surrey is currently 6.53%, while nesto’s lowest 2-year mortgage rate is

The average 4-year fixed insurable mortgage rate in Surrey is currently 5.65%, while nesto’s lowest 4-year mortgage rate is .

The average 7-year fixed insurable mortgage rate in Surrey is currently 6.37%, while nesto’s lowest 7-year mortgage rate is .

The average 10-year fixed insurable mortgage rate in Surrey is currently 7.14%, while nesto’s lowest 10-year mortgage rate is .

Note: The average rate is calculated based on the posted rates of the six biggest lenders in Canada, which together make up over 70% of the retail mortgage market in the country. These six biggest lenders are the chartered banks Toronto-Dominion Canada Trust (TD), Royal Bank of Canada (RBC), Bank of Montréal (BMO), Bank of Nova Scotia (BNS), Canadian Imperial Bank of Commerce (CIBC), and National Bank of Canada (NBC).

What is today’s prime rate in Surrey?

The Bank of Canada prime rate in Surrey is currently . This rate affects all lenders’ discounts on variable and adjustable mortgages.

What are the average 5-year mortgage rates in Surrey?

The average 5-year fixed mortgage rate from big banks in Surrey is currently 4.99%*, while nesto’s lowest 5-year fixed mortgage rate in Surrey is .

The average 5-year variable mortgage rate from big banks in Surrey is currently 5.53%, while nesto’s lowest 5-year variable mortgage rate in Surrey is .

Note: The average rate is calculated based on the posted rates of the six biggest lenders in Canada, which together make up over 70% of the retail mortgage market in the country. These six biggest lenders are the chartered banks Toronto-Dominion Canada Trust (TD), Royal Bank of Canada (RBC), Bank of Montréal (BMO), Bank of Nova Scotia (BNS), Canadian Imperial Bank of Commerce (CIBC), and National Bank of Canada (NBC).

Surrey Mortgage Rate Trends: December 2024

While it’s difficult to predict where mortgage rates will trend, the consensus among experts suggests that we could see rates remain higher for longer. Forecasts suggest we won’t see interest rates return to the neutral rate range of 2 to 3% until the end of 2025.

Bank of Canada Rate Announcement

The latest Bank of Canada (BoC) announcement on October 23rd was a policy interest rate decrease to . The BoC cited supporting economic growth and maintaining inflation around 2% as reasons the Governing Council lowered the policy rate by 50 basis points.

While inflation has eased, the growth in shelter costs, particularly rent and mortgage interest costs, is currently the most significant contributor to total inflation. The Governing Council continues to monitor core inflation numbers when assessing policy rate decisions to ensure sustained downward momentum in inflation.

The next announcement will be on December 11th. Using nesto’s proprietary overnight index swap and forward rate calculation data, bond markets are currently pricing in the probability of further rate cuts. However, without further sustained reductions to core inflation, the Bank may leave the key rate unchanged.

Real Estate Market Update

On November 15th, the Canadian Real Estate Association (CREA) released its October home sales data. The data showed that home sales increased 7.7% between September and October, reaching their highest level since April 2022.

October’s home sales activity reported that new listings declined 3.5% month-over-month. However, new supply remains at some of the highest levels since mid-2022.

October sales suggest buyers have re-entered the market, but the increase in sales is more likely related to the surge in new listings from September rather than the decrease in interest rates.

CPI Inflation Update

Statistics Canada’s latest inflation data, released on November 19th, showed the Consumer Price Index (CPI) rose 2.0% year-over-year in October, up from 1.6% in September. This month’s increase is attributed to gasoline prices falling to a lesser extent in October (-4.0%) than in September (-10.7%).

Shelter prices continued to be a more significant driver of inflation in October, up 4.8%, down from the 5.0% recorded in September. Higher interest rates are impacting Canadians’ spending patterns, as they are now spending less on discretionary items and delaying big-ticket purchases.

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 October 2024): $961,300 (CREA)
  • Canadian homeownership rate (as of 2021): 66.5% (StatsCan)
  • Number of home sales in Vancouver (as of October 2024): 2,632 (GVR)
  • Number of new listings in Vancouver (as of October 2024): 5,452 (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.