Posts Tagged ‘mortgage rates Victoria BC’

In the stable 2026 Victoria real estate market, where inventory remains higher and prices are holding steady, getting pre-approved for a mortgage is one of the smartest first steps you can take as a buyer. Pre-approval gives you clarity around your budget and shows sellers that you are prepared and serious. Whether you are a first-time buyer looking at condos or townhomes, or planning to move into a family home in areas like Oak Bay or the Westshore, pre-approval helps you shop with confidence and focus on realistic options. What Is Mortgage Pre-Approval? Mortgage pre-approval is a lender’s conditional commitment outlining how much you may be able to borrow based on a review of your finances. This includes a credit check, income verification, and an assessment under Canada’s mortgage stress test. Unlike pre-qualification, which is only an estimate, pre-approval provides a more reliable borrowing range. It also allows many buyers to lock in an interest rate for up to 90 to 120 days, offering protection against short-term rate changes. In a market like Victoria, where average home prices remain high, pre-approval helps narrow your search and avoid wasted time. Why Pre-Approval Matters in Victoria’s 2026 Market Pre-approval strengthens your position when making an offer. Sellers are more likely to take your offer seriously when financing is already reviewed, especially in desirable neighbourhoods where competition can still exist. It also provides peace of mind. Knowing your borrowing limit allows you to plan confidently, align expectations, and avoid overextending yourself. For first-time buyers, pre-approval also helps coordinate eligibility for government programs and incentives. Steps to Get Pre-Approved The process is straightforward when documents are prepared in advance. Review your finances Check your credit score, outstanding debts, and available down payment. A score of 680 or higher typically opens access to better rates. Gather required documents Having documents ready can significantly speed up approval timelines. Choose a lender or mortgage broker Banks, credit unions, and brokers each offer different advantages depending on your needs. Submit your application Applications can be completed online, in person, or over the phone. A hard credit check is required. Receive your pre-approval Once approved, you will receive a letter outlining your maximum purchase price and rate hold period. Documents You Will Need To keep things moving smoothly, prepare the following: Government-issued photo ID Recent pay stubs and T4s or Notices of Assessment Employment confirmation letter Bank statements and details of existing debts Proof of down payment and closing costs Self-employed buyers may need additional documentation covering the past two years. Choosing a Lender or Broker in Victoria Victoria buyers can choose between major banks, local credit unions, or licensed mortgage brokers. Banks and credit unions offer direct applications and familiar products. Mortgage brokers, on the other hand, can compare multiple lenders and help structure financing based on your goals. Working with a broker can be especially helpful if your income is variable, you are self-employed, or you want to explore more flexible options.  Common Mistakes to Avoid Avoid taking on new debt during the pre-approval process, as it can impact your borrowing power. It is also wise to review your credit report in advance and correct any errors. Finally, try to complete lender applications within a short time frame to limit the impact on your credit score. Bottom Line Mortgage pre-approval sets the foundation for a successful home purchase in Victoria. It helps you understand your budget, strengthens your offers, and reduces stress once you find the right property. Ready to take the next step toward buying in Victoria or the Westshore? Contact us to discuss how pre-approval fits into your home search and overall strategy. We can also refer you to a mortgage broker.    James C., 5-Star Review, via Google “Scott made the process of finding a good condo in Victoria as simple and straightforward as it can be. He was always very helpful, and quick to respond throughout the process from start to finish. Being new to BC I think the ordeal would have been pretty overwhelming otherwise. I'd definitely recommend Scott and his team to others in the future.” Faber Real Estate Group Royal LePage Coast Capital Realty 📞 250-244-3430 📧[email protected] ℹ️ Scott Faber Personal Real Estate Corporation ℹ️ Cal Faber Personal Real Estate Corporation Vanessa Wood, Zachary Parsons, and Sophie Taylor “Building Lasting Relationships, One Home at a Time.”  

The Bank of Canada has held the overnight rate steady. For homeowners with fixed or variable mortgages, this means there is no immediate change to monthly payments. However, the decision itself offers important insight into where interest rates may be headed in 2026. In a balanced market like Greater Victoria, understanding the signal behind the pause matters just as much as the rate itself. What This Announcement Really Signals Holding rates suggests the Bank believes current policy is restrictive enough to cool inflation without further tightening. Instead of reacting aggressively, the Bank is choosing to wait and assess how past rate hikes continue to work through the economy. For buyers and homeowners, this points to a shift from rate shock to rate stability. Why Inflation Is No Longer Forcing the Bank’s Hand Inflation has eased from its peak and is moving closer to the Bank’s target range. While prices are still elevated in some areas, broad inflation pressures are no longer accelerating. Because of this, the Bank does not need to raise rates further to regain control. That does not guarantee cuts are imminent, but it reduces the risk of sudden increases. What Could Actually Move Rates This Year Future rate changes will likely depend on a few key factors: Sustained declines in inflation Slower economic growth or rising unemployment Weak consumer spending and housing activity If inflation continues to cool without a rebound in demand, gradual rate cuts later in 2026 become more likely. On the other hand, renewed inflation pressure or economic surprises could delay that timeline. How Buyers and Homeowners Should Think About Risk For current homeowners, stability offers a chance to review renewal timelines, stress test household budgets, and avoid overextending in anticipation of rapid rate cuts. For buyers, this environment supports careful planning. Rate holds reduce urgency, but affordability still matters. Buyers should focus on long-term payment comfort rather than timing short-term rate moves. In markets like Victoria, where inventory remains higher and prices are stable, patience and flexibility continue to be advantages. Bottom Line The Bank of Canada holding rates steady does not change payments today, but it signals a more measured phase of monetary policy. Inflation is no longer driving aggressive action, and future moves will depend on how the economy evolves through 2026. If you are weighing your options as a buyer or homeowner, now is a good time to review your strategy and understand how interest rate risk fits into your plans. Ready to talk through your next move? Contact us to discuss how today’s rate environment impacts your home search or long-term goals. Dione S., 5-Star Review, via Google “We made a MAJOR purchase and his expertise gave us the confidence to make OUR own decision in this crazy market! We are HAPPY ! Would not change a thing! Thank you Faber team!!” Faber Real Estate Group Royal LePage Coast Capital Realty 📞 250-244-3430 📧[email protected] ℹ️ Scott Faber Personal Real Estate Corporation ℹ️ Cal Faber Personal Real Estate Corporation Vanessa Wood, Zachary Parsons, and Sophie Taylor “Building Lasting Relationships, One Home at a Time.”