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.

02 Jul Should You Lock In Your Mortgage Rate Before the July 30 BoC Announcement? – A 2025 Buyer’s Guide in BC

Posted at 10:48h in Mortgage Interest Rate by Satbir Bhullar

With the next Bank of Canada interest rate decision scheduled for July 30, 2025, mortgage shoppers and homeowners in Surrey, Abbotsford, and surrounding areas are at a crossroads: Should you lock in your mortgage rate now or wait for further cuts?

The answer depends on your financial goals, the type of mortgage you’re considering, and what economic signals suggest about where rates are headed. In this guide, we break down the latest rate environment, key pros and cons of locking in now, and how borrowers in the Fraser Valley and Lower Mainland can act strategically in this high-stakes period.

Why Timing Matters in Today’s Mortgage Market

As of June 2025, the Bank of Canada’s key policy rate sits at 2.75%, following three successive rate cuts since January. Fixed mortgage rates—closely tied to bond yields—have steadily declined, but variable rates remain high, and lenders are starting to reprice products in anticipation of a more dovish stance by the BoC later this year.

However, there’s no guarantee that rates will continue to fall—or how lenders will respond.

If you’re a buyer in the pre-approval phase, a homeowner planning a mortgage renewal, or someone weighing refinancing, locking in a rate now could offer peace of mind.

What Is a Mortgage Rate Lock?

A mortgage rate lock allows you to secure today’s interest rate for a specified period—often 30 to 120 days—regardless of any fluctuations in the market during that time. This is particularly valuable in a volatile rate environment, where lenders may increase rates quickly in response to market signals.

Key Features of Rate Locks:

Duration: 30–120 days (depending on lender)
Applicable to both fixed and variable products (for approval purposes)
Often offered at no additional cost during the pre-approval phase

Current Mortgage Rate Trends in BC

In Surrey, Abbotsford, and nearby regions, many lenders have started to adjust 5-year fixed mortgage rates in response to lower bond yields. For example:

Fixed rates have fallen below 4.5% for insured mortgages
Uninsured and longer amortization options are still pricing higher
Variable rates, however, remain elevated due to their direct tie to BoC’s policy rate

For context, bond yields—especially the 5-year government bond—have declined due to softening inflation, a cooler job market, and growing expectations of additional rate cuts into late 2025.

To learn how these bond movements are influencing rate strategies, read How Lower Bond Yields Are Reshaping Fixed Mortgage Rates in BC.

The Risk of Waiting: What If the BoC Doesn’t Cut in July?

While a July 30 rate cut is still probable, it’s not guaranteed. Inflation is softening, but not yet back to the 2% target. If economic data between now and late July signals renewed inflation pressure, the Bank could pause, or even delay further rate cuts.

In this scenario, lenders may increase fixed rates in response to rising bond yields—or tighten lending standards temporarily.

Advantages of Locking In Your Mortgage Rate Now

Here’s what locking in your rate now can do for you:

Protection from Market Fluctuations

Once you lock in your rate, you’re shielded from any sudden upward movement. Even if your deal closes months from now, your rate is guaranteed.

Peace of Mind in Uncertain Conditions

Locking in early helps reduce the emotional stress of watching rates change weekly. You’ll know what your payments will look like—helping you budget more accurately.

Better Bargaining Power

With your pre-approval locked in, sellers are more likely to take you seriously—especially in hot markets like Surrey’s Fleetwood, Newton, or Abbotsford’s McMillan neighbourhoods.

Optionality If Rates Drop

Most lenders offer a “float down” clause, meaning if rates fall after you lock, you can still benefit. This feature gives you the best of both worlds.

Why Some Borrowers Are Still Waiting

Despite these advantages, not everyone is rushing to lock in. Reasons include:

Expectation of further BoC rate cuts beyond July
Preference for variable products with potential for lower long-term cost
Flexible financial situations that allow for rate shopping closer to closing

Still, experts caution that trying to “time the market” perfectly often leads to missed opportunities or unnecessary risk—especially in a rising home price environment.

Explore more on how current trends affect decision-making in Mortgage Strategies for a 2.75% Rate Environment – How Buyers and Homeowners in BC Can Act Now

Who Should Lock In Their Rate Now?

While timing decisions always depend on your unique situation, here are some borrower profiles for whom locking in a mortgage rate now makes the most sense:

First-Time Home Buyers With Approaching Closing Dates

If you’re a first-time buyer in Surrey, Abbotsford, or Langley with a home under contract—or actively house-hunting—you’ll benefit from securing a rate lock. Doing so ensures budget certainty and protects you from rate volatility while you finalize your purchase.

Buyers Working With Tight Budgets

If even a 0.25% interest rate increase would impact your mortgage approval or monthly affordability, locking your rate today is the safer route. With home prices steadying in BC’s Lower Mainland, avoiding future affordability issues is smart planning.

Explore: Mortgage Affordability & Its Key Factors in Canada

Homeowners Considering Mortgage Renewals

If your mortgage is coming up for renewal in the next 4–6 months, it may be beneficial to secure a renewal rate early—especially if you plan to stick with a fixed-rate product.

Read: The Complete Guide to Mortgage Renewal in Abbotsford, Surrey & Nearby Areas

Borrowers Exploring Refinance Options

If you’re looking to refinance to access home equity or consolidate debt, now is a great time to get pre-qualified and lock in a low fixed rate while bond yields remain favourable.

What Lenders Are Doing Ahead of the July 30 BoC Rate Decision

Lenders across Canada are cautiously adjusting their fixed-rate offerings in response to:

Falling 5-year government bond yields
Growing investor sentiment around further BoC easing
Competition in the market as more buyers re-enter this summer

Major banks and monoline lenders have already shaved rates by 10–25 basis points in some segments, particularly for high-ratio insured borrowers.

This shift creates an opportunity for rate shoppers to negotiate more aggressively or have their broker secure lender-specific promotions.

Advice for Buyers in Abbotsford, Surrey & Surrounding Communities

Markets like South Surrey, Cloverdale, Willoughby, and East Abbotsford are seeing a renewed surge in activity as rates cool. If you’re in these areas:

Act early: Sellers are responding to buyer interest—getting pre-approved with a locked-in rate helps you compete with confidence.
Stay flexible: Even with a locked rate, monitor new offers. Some lenders will allow you to switch to a lower rate if offered before closing.
Talk to a broker: A local mortgage professional can help you compare rate lock options, including whether fixed or variable suits your goals.

FAQs: Mortgage Rate Locks in 2025

Q1: How long can I lock in a mortgage rate for in BC?
Most lenders offer rate locks from 30 to 120 days, with 90 days being a common term. Your mortgage broker can help secure the maximum duration available.

Q2: Can I change lenders after locking in a rate?
Yes, but you’ll need to reapply with the new lender. If rates fall and another lender offers better terms, it may be worth switching during your lock window.

Q3: What happens if rates drop after I lock in?
Some lenders offer a “rate drop policy” (also known as a float-down). This allows you to get the lower rate if it becomes available before your mortgage closes.

Q4: Should I lock in a fixed or variable rate?
This depends on your risk tolerance. Fixed offers certainty, while variable may save more if rates drop later. Your broker can model both options for your scenario.

Q5: Is it too early to lock in if I plan to buy in fall 2025?
If your purchase is more than 120 days away, it may be too early. However, you can begin your mortgage planning now and revisit locking in closer to your timeline.

Final Takeaway: Secure Your Advantage Before the Market Moves

With the July 30 Bank of Canada rate announcement approaching, this window offers a rare opportunity: stable bond yields, softening inflation, and competitive lender offers are aligning to make rate locking a smart move for many.

If you’re buying, renewing, or refinancing in Surrey, Abbotsford, or anywhere in BC, now is the time to act decisively.

Want personalized guidance and access to the best rate lock offers?

👉 Get started here or reach out via our contact page to speak with an expert mortgage consultant.

Tags:

Print page