How many residential mortgages can I have?

The number of mortgages you can have is unlimited. Rather, people are constrained by their capacity to manage several mortgages or their financial status. First and second mortgages are two mortgages that are typically held concurrently on a same property.

What is a second mortgage Canada?

Second mortgage is a second loan or funding you take on your residential property. Interest rates on second mortgages are usually higher than first mortgages and you need to pay both your mortgages at the same time.

What is a conventional mortgage Canada?

A conventional mortgage in Canada is a loan where the down payment is at least 20% of the property's purchase price. This means that the loan amount is 80% or less of the property's value.

How long can you mortgage a home in Canada?

In Canada, you can mortgage a home for 25 years. If you are a first-time buyer or purchasing a new build you can mortgage it for 30 years. These rules took effect on December 15, 2024.

Can I buy a home with less than a 20% down payment?

The minimum amount you need for your down payment depends on the purchase price of the home. If your down payment is less than 20% of the price of your home, you'll typically need to buy mortgage loan insurance. If you're self-employed or have a poor credit history, your lender may require a larger down payment.

Should I choose a fixed rate or variable rate mortgage?

Interest rates either rise or fall. But a study suggests that homeowners with a variable mortgage fair better than a fixed rate one.

12 Jun How Lower Inflation and Bond Yields Are Shaping Mortgage Rates in BC (2025 Outlook)

Posted at 10:15h in Mortgage Interest Rate by Satbir Bhullar

Mortgage Market Update: What’s Changing in BC

British Columbia’s housing market is entering a new phase in 2025, shaped by a notable decline in bond yields and easing inflation. For residents of Abbotsford, Surrey, and other nearby cities, this shift is influencing how banks and mortgage lenders are adjusting both fixed and variable rate mortgages.

After years of rate hikes to combat rising prices, economic indicators now suggest a softening stance from the Bank of Canada. Lower bond yields and improved inflation figures are pushing down borrowing costs, creating renewed opportunity for buyers, homeowners, and investors in the Fraser Valley.

Understanding how these trends impact the mortgage market can help borrowers make timely, informed decisions—especially in competitive real estate areas like Surrey and Abbotsford, where demand continues to outpace supply.

The Role of Bond Yields in Fixed Mortgage Rates

Fixed mortgage rates in Canada are heavily influenced by 5-year Government of Canada bond yields. When bond yields fall, it becomes cheaper for banks to borrow and lend, resulting in lower fixed-rate mortgage offers.

Since early 2025, yields have consistently declined—dropping to levels not seen since mid-2023. This trend has led to subtle but strategic rate reductions across major lenders and credit unions.

As a result, many buyers who were priced out in 2024 are re-entering the market. Those considering a home purchase mortgage in cities like Surrey are now able to access more competitive rates, reducing long-term interest costs.

A detailed guide on how to get the best home purchase mortgage rates outlines strategies like locking in during dips, comparing lenders, and choosing the right amortization term.

How Inflation Is Driving Policy Shifts

Canada’s inflation rate has steadily moved closer to the Bank of Canada’s 2% target, thanks to cooling energy prices and improved supply chains. As inflation declines, so does the pressure to maintain high interest rates.

In practical terms, this means we’re moving closer to the first rate cuts since the hiking cycle began in 2022. While the central bank hasn’t acted yet, lenders are already pricing in expectations—hence the early drop in mortgage rates.

This scenario is good news for those considering a mortgage renewal in 2025 or even early refinancing. Borrowers locked into higher-rate mortgages during 2023–2024 may now have the chance to renegotiate terms or refinance before maturity to take advantage of more affordable lending conditions.

For actionable insights, refer to this comprehensive guide to mortgage refinancing in BC.

What Borrowers in Surrey and Abbotsford Are Doing

With declining rates, mortgage activity is seeing a moderate rebound in Surrey, Abbotsford, Langley, and other Lower Mainland markets. Buyer confidence is returning as affordability improves, even marginally.

Many first-time buyers are accelerating their timelines, especially those who now qualify under revised stress test thresholds. A great resource for this segment is the ultimate guide to first-time home buyer mortgages in BC, which outlines eligibility, pre-approval requirements, and government incentives.

Homeowners, on the other hand, are actively seeking refinancing opportunities. Whether switching from variable to fixed, consolidating debt, or tapping into equity, there’s an uptick in strategic refinancing decisions.

Fixed vs. Variable Mortgage Trends

Fixed mortgage rates have already dropped modestly. The gap between fixed and variable products is narrowing, prompting borrowers to reconsider traditional assumptions.

Fixed Rates:

More attractive for those who prefer stability
Rates dropping due to bond market behavior
Widely used for first-time purchases and investment properties

Variable Rates:

May become more competitive if BoC cuts begin mid-2025
Still offer flexibility for those expecting further declines

For borrowers evaluating both options, this explainer on fixed vs. variable rate mortgages helps outline scenarios based on income, risk tolerance, and long-term plans.

Local Impacts in Surrey and Fraser Valley

Cities like Surrey and Abbotsford are seeing tangible shifts due to these national economic trends. In particular:

Mortgage brokers report increased pre-approval applications in April and May
Developers are seeing stronger presale activity as buyers anticipate more rate relief
Homeowners are reevaluating refinancing and early renewal strategies to avoid higher long-term interest payments

These dynamics are setting up a more competitive landscape for summer 2025. Mortgage specialists in the region are encouraging borrowers to act strategically while rates are in transition.

Preparing for What’s Next

Lower bond yields and slower inflation are positive signals, but they don’t guarantee continued mortgage rate drops. Global events, commodity prices, and upcoming Bank of Canada decisions will all influence where the market heads next.

In the meantime, mortgage seekers should:

Get pre-approved to lock in favorable rates
Monitor bond market trends and BoC guidance
Review refinance options with a trusted mortgage broker
Consider timing and flexibility if planning to buy this summer

What Homeowners Should Consider Right Now

If you’re a current homeowner in Abbotsford, Surrey, or nearby areas, declining bond yields and inflation trends could be your opportunity to optimize your mortgage.

Many homeowners are choosing to refinance their mortgage now rather than wait for further BoC announcements. The window to lock in more favourable terms may close quickly if inflation rebounds or global market pressures shift.

Whether it’s shortening your amortization, consolidating debt, or accessing equity for renovations, reviewing your mortgage now can lead to significant long-term savings. This guide to refinancing outlines five compelling reasons why this year may be the right time.

Preparing for a Mortgage Renewal in 2025

For many households in BC, mortgage renewals are approaching under vastly different conditions compared to their original term. Homeowners who locked in at low rates pre-2022 saw steep payment increases when renewing in 2023–24.

Now, with rates beginning to ease, mortgage renewal in 2025 offers a better opportunity to reassess terms, switch lenders if necessary, or negotiate for improved rates. The complete renewal guide helps borrowers navigate the renewal process and avoid common pitfalls.

Additionally, those exploring options should consider tools like the mortgage payment calculator to compare estimated monthly payments under new rates.

Why Pre-Approval Still Matters in a Cooling Market

While affordability is improving, homes in the Fraser Valley remain in demand. With inventory slowly climbing, buyers need to move quickly when the right opportunity appears.

Securing a mortgage pre-approval gives you rate protection and negotiating power. Lenders may offer pre-approvals valid for 90 to 120 days, allowing buyers to take advantage of today’s rates while they shop.

A related resource, Why Mortgage Pre-Approvals Matter More Than Ever This Spring, outlines how to leverage pre-approvals in competitive local markets like Surrey and Abbotsford.

How Satbir Bhullar Mortgages Can Help

Navigating BC’s mortgage landscape in 2025 takes experience and timely insight. At Satbir Bhullar Mortgages, our team serves clients across Surrey, Abbotsford, and surrounding areas—helping first-time buyers, homeowners, and investors secure financing solutions tailored to their needs.

Whether you’re looking for guidance on fixed vs. variable, help with mortgage refinancing in Surrey, or simply need to explore mortgage rates, we’re here to assist you with transparent, client-first advice.

For a personalized mortgage assessment, visit our contact page or start your application online at our home page.

FAQs: Mortgage Trends in BC for 2025

Q1. Are fixed mortgage rates going to drop more in 2025?
While fixed rates have already declined slightly due to bond yield movement, additional drops may depend on upcoming Bank of Canada decisions and inflation trends.

Q2. Should I refinance now or wait for lower rates?
If your current rate is significantly higher than market rates, refinancing could reduce your payments. However, it’s wise to assess prepayment penalties and compare savings using a mortgage affordability calculator.

Q3. Is it better to go fixed or variable right now?
This depends on your financial goals and risk tolerance. Fixed rates offer predictability, while variable could become more attractive if rate cuts continue. A mortgage broker can help model scenarios.

Q4. Does mortgage pre-approval guarantee the final rate?
Pre-approvals typically guarantee the offered rate for a limited time (90–120 days). It helps you shop confidently, but final approval is subject to property qualification and income verification.

Q5. What areas does Satbir Bhullar Mortgages serve?
We specialize in helping borrowers across Surrey, Abbotsford, Langley, Delta, and surrounding areas throughout the Fraser Valley and Greater Vancouver.

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