09 Jul What Today’s Mortgage Trends Mean for Buyers and Homeowners in Surrey and Abbotsford
In 2025, the real estate and mortgage markets in Surrey, Abbotsford, and surrounding parts of the Fraser Valley are undergoing subtle but significant changes. As the Bank of Canada maintains a cautious monetary stance, mortgage interest rates are stabilizing after a period of aggressive tightening. This shift presents both opportunities and new questions for first-time homebuyers, current homeowners, and property investors.
The Cooling of Rate Hikes: Where We Stand Now
The Bank of Canada has held its key overnight policy rate at 2.75% as of its last announcement in June. This marks a substantial change from 2023 and early 2024, when the central bank was aggressively raising rates to control inflation. Now, as inflation begins to cool, market watchers are closely monitoring bond yields and fixed mortgage rate trends.
In areas like Surrey and Abbotsford, these monetary signals directly impact affordability, borrowing power, and overall housing activity. For local buyers and homeowners, this means that while rates may not fall rapidly, further increases are unlikely in the short term — bringing a sense of predictability that’s been missing for years.
Fixed vs. Variable: Mortgage Strategy is Evolving
With the current rate environment offering more stability, the debate between fixed vs. variable rate mortgages has resurfaced. In past years, variable rates offered significant savings, but they came with more risk during high inflation. Now that rates have leveled, many homeowners in BC are once again exploring fixed-rate options for predictability.
If you’re shopping for a mortgage in Surrey or Abbotsford, this is an ideal time to revisit your assumptions. Fixed rates currently offer competitive pricing, and with bond yields trending downward, some lenders have already started trimming their posted rates.
To understand which option is right for your financial goals, explore our blog on how lower bond yields are reshaping fixed mortgage rates in BC.
What This Means for First-Time Homebuyers
First-time buyers have been among the hardest hit in recent years due to rising home prices and high borrowing costs. However, recent policy moves like the GST exemption on homes under $1 million for first-time buyers are designed to ease this burden.
In both Surrey and Abbotsford, where average detached and townhome prices can often fall within this threshold, the change is significant. Combined with slightly lower fixed rates and more available inventory, this could be the most buyer-friendly environment we’ve seen since 2021.
Looking for guidance on navigating these updates? Read The Ultimate Guide to First-Time Home Buyer Mortgages in BC.
Homeowners: Time to Reassess Your Strategy
For current homeowners with mortgages nearing renewal, this is the moment to reassess. If your term ends in the next 6–12 months, you’re likely facing a higher rate than what you locked in years ago. That said, the environment now is more favourable than late 2023 or early 2024.
Instead of rushing into a renewal with your current lender, consider your refinancing options to consolidate debt, access equity, or extend your amortization to manage cash flow. These strategies are becoming increasingly relevant in the Fraser Valley, where property values have held steady but household budgets remain tight.
We’ve detailed the full range of options in The Complete Guide to Mortgage Refinancing in BC.
The Regional Picture: Why Local Matters
Surrey and Abbotsford continue to grow — both in population and housing stock. But each market behaves a little differently.
- Surrey remains a fast-paced, urbanized area where condos and townhomes dominate the market. Demand is driven by newcomers, young professionals, and families looking for transit access and amenities.
- Abbotsford offers more space and detached options, appealing to multi-generational buyers and self-employed individuals.
Understanding these local dynamics is critical when deciding how much to borrow, which lender to choose, and how to align your mortgage with future property goals.
Looking to understand mortgage options for self-employed applicants in these areas? You can explore self-employed mortgage requirements and strategies tailored for BC residents.
Early Insights Into Market Activity
With peak summer market activity underway, we’re seeing signs of a more competitive landscape. Sellers are becoming more confident, while buyers — especially those with pre-approvals — are moving decisively. If fixed rates continue their slow decline and the government introduces more buyer-friendly incentives, this trend could accelerate in the second half of the year.
It’s important to stay informed. Use tools like the mortgage affordability calculator to regularly reassess what you can comfortably borrow in today’s market.
Pre-Approvals: Still Your Competitive Advantage
Mortgage pre-approvals aren’t just paperwork — they’re a strategic advantage, especially in a market where rates are shifting and inventory is moving quickly. In competitive pockets of Surrey and Abbotsford, sellers often prefer offers that come with confirmed financing. A pre-approval gives you clarity on your budget and shows sellers you’re serious.
If you haven’t secured one yet, now is the time. For a deeper dive, refer to our blog on why mortgage pre-approvals matter more than ever this spring, which remains highly relevant even through summer and fall 2025.
Home Equity Loans Are Gaining Traction
With many homeowners having built up equity over the past decade, home equity loans are emerging as a powerful tool — whether for renovations, education expenses, or as a bridge during a property transition. These loans typically come with lower interest rates than unsecured credit and can be structured flexibly.
Given the relatively stable real estate prices in Abbotsford and Surrey, accessing home equity without selling is a viable way to tap into long-term value. Learn more in our detailed guide to home equity loans in BC.
What Should You Be Doing Right Now?
Here are a few steps that can help both buyers and current homeowners make better decisions in this climate:
- Monitor Rate Announcements
Keep an eye on the next Bank of Canada rate decision on July 30, 2025. Markets are expecting a cautious approach, but even a small change can ripple across fixed and variable products. Stay connected with your mortgage advisor to understand how any move could impact your current or future mortgage.
- Re-evaluate Your Financial Position
Run updated numbers with tools like the mortgage payment calculator or affordability estimator. What you could borrow in 2023 is very different from what’s feasible in 2025. These tools, paired with real-time rate quotes, provide better clarity.
- Consider Renewal Strategy
If your renewal is due in the next 6–12 months, don’t wait for the lender’s first offer. Look into market rates, shop around, and consider working with a mortgage broker who can compare lenders on your behalf. For step-by-step support, explore The Complete Guide to Mortgage Renewal in Abbotsford, Surrey & Nearby Areas.
- Explore Refinancing Opportunities
If your current mortgage rate is above 4.5% and you have strong credit, refinancing into a lower fixed rate may help you reduce your monthly payments or consolidate higher-interest debts. This is particularly valuable in the current 2.75% policy rate environment. Start by reading 5 Amazing Benefits of Refinancing Your Mortgage.
FAQs: Mortgage Trends & Buyer Decisions in 2025
Q1: Are mortgage rates expected to drop further in 2025?
A: Economists expect rates to remain relatively stable with minor downward pressure. Much depends on inflation trends and future Bank of Canada policy decisions. Fixed rates may soften slightly if bond yields decline further.
Q2: Is now a good time to refinance my mortgage?
A: Yes, if your current rate is significantly higher than the best available fixed rates. Even a 1% difference can lead to major monthly savings, particularly if you have more than $300,000 left on your mortgage.
Q3: Should I wait to buy in case rates drop more?
A: Timing the market is difficult. If you’re financially ready, today’s stable rate environment may offer better predictability and less competition than a potential future market surge.
Q4: How do I choose between fixed and variable rates?
A: In this market, fixed rates offer peace of mind and are still competitive. Variable rates may become attractive again, but only once there’s a clearer path to consistent rate reductions.
Q5: What should I know about pre-approvals?
A: A mortgage pre-approval locks in a rate for up to 120 days and gives you a clear idea of your budget. It also boosts your credibility with sellers in competitive areas like Surrey and Langley.
Final Word
The remainder of 2025 presents a balanced landscape for buyers and homeowners in Surrey, Abbotsford, and nearby areas. With inflation trending lower, interest rates stabilizing, and new federal housing policies on the horizon, there are real opportunities to act — whether that means securing a mortgage, refinancing, or renewing smartly.
To discuss your next steps or get a tailored quote, reach out to us directly via our Contact page.
For mortgage solutions across Surrey, Abbotsford, and surrounding BC communities, we’re here to guide you.