The Canadian housing market has endured a turbulent journey over the past two years, but as we move into the second half of 2025, optimism is quietly making a comeback. British Columbia, in particular, is witnessing early signs of recovery. While uncertainty still lingers, a pause in interest rate hikes, improving affordability metrics, and moderating prices are prompting both seasoned homeowners and first-time buyers to reconsider their next move.
This shift in market momentum raises important questions. Is it the right time to buy? Should you refinance or renew your mortgage now? How can you secure favourable terms without overextending your budget?
Let’s explore the key trends reshaping buyer confidence in BC — and the strategies that can help you move forward smartly and securely.
Rate Pause Brings Breathing Room
The Bank of Canada’s decision to hold the key interest rate at 2.75% since June 2025 has provided much-needed stability for mortgage borrowers. After a series of rapid rate hikes that squeezed affordability and stalled home sales, the pause has allowed lenders, brokers, and buyers to recalibrate expectations.
This stability has been especially encouraging for first-time buyers, who had been priced out or too uncertain to enter during the peak volatility of 2023 and 2024. While we’re not yet in a “low rate” environment, the pause signals predictability — something buyers crave.
Many clients are revisiting their mortgage strategies now. If you’re considering locking in a rate, it’s worth exploring whether a fixed or variable mortgage aligns better with your goals. You can learn more in Fixed vs. Variable Rate Mortgages: Making the Right Choice During Economic Uncertainty.
Sales Picking Up, Prices Stabilizing
According to the latest CREA data, home sales in BC rose modestly in June and early July 2025. Meanwhile, average prices have dipped slightly but are no longer in freefall. In areas like Surrey and Abbotsford, the market is transitioning into a balanced phase — where neither buyers nor sellers hold complete control.
This normalization is key to rebuilding buyer trust. In previous quarters, many were hesitant to act, fearing further depreciation or aggressive rate hikes. But now, there’s a renewed focus on long-term value over short-term speculation.
If you’ve been waiting for the market to “bottom out,” this period could present a realistic entry point — particularly for well-qualified buyers. Those exploring first-time buyer programs should also be aware of updates to the First Home Savings Account (FHSA) and 30-year amortization for insured mortgages, which make ownership more accessible. The Rise of 30-Year Amortization for First-Time Buyers explains the latest.
Homeowners Are Re-Evaluating Their Mortgages
Homeowners who locked in during the higher-rate windows of 2023 and early 2024 are now exploring refinancing options. With market rates gradually inching downward and appraisal values still solid in many BC regions, refinancing to lower payments is emerging as a key strategy.
Even with penalties, the math may make sense depending on your remaining term and cash flow needs. You can use Sandhu & Sran’s Mortgage Refinance Calculator or schedule a no-cost assessment to explore your break-even point. For a broader look at current opportunities, read Refinancing in a Lower‑Rate Environment: Is Now the Right Time for BC Homeowners?.
Mortgage Renewals Require Strategy
For those with mortgages up for renewal in 2025, the stakes are high. Lenders may offer auto-renewal at rates that are not in your best interest. With 1.5+ million Canadian mortgages renewing this year, brokers like Sandhu & Sran are stepping in to negotiate better terms, introduce flexible payment structures, and offer short-term fixed options while rates settle.
You don’t have to accept the first offer from your lender. A strategic renewal plan could save you thousands — or even help you pivot to new goals like debt consolidation or tapping home equity. We’ve explored this further in Mortgage Renewals in 2025: How to Navigate Higher Payments Without the Panic.
Smart Moves for Buyers in Today’s Climate
Buyers in late 2025 need to approach the market with a clear strategy. Here’s how we’re advising clients across Surrey, Abbotsford, and Edmonton:
- Get Pre-Approved Now: Rate holds are available for up to 120 days. Pre-approval locks in a potential opportunity before rates shift.
- Consider New Builds or Assignment Sales: With inventory improving, developers are offering competitive terms — and a qualified broker can help you structure a deal that includes extended possession timelines.
- Explore Investment Opportunities: Some BC regions are showing signs of rental demand outpacing supply. A carefully structured investment property mortgage could offer long-term wealth building.
Where Confidence Comes From: Education + Guidance
At Sandhu & Sran Mortgages, we believe confidence is built through clarity. The right mortgage strategy in 2025 isn’t just about chasing the lowest rate — it’s about aligning your financing with your life goals, budget, and market outlook.
We take the time to explain every option, compare real-time lender products, and guide you through decisions — whether you’re buying your first home, refinancing, or preparing for renewal.
For more insights into today’s housing market, you may also want to read Home Prices Dip & Sales Surge: What BC Homeowners Should Do Now, which provides timely tips for those on the fence.
Turning Optimism into Action: Strategic Steps Buyers and Homeowners Can Take Now
While the Bank of Canada’s steady policy has brought much-needed stability to the market, making the right financial moves still requires a proactive mindset. With confidence gradually returning and conditions starting to favour qualified borrowers, what should your next step be?
In this section, we explore how BC buyers and homeowners can take decisive actions today — from optimizing mortgage renewals to seizing investment opportunities — and avoid common pitfalls in this still-evolving landscape.
- Prepare Early for Your Mortgage Renewal
If your mortgage is renewing in the next 6 to 12 months, start planning now. Don’t wait for the renewal letter from your lender — rates, products, and terms evolve frequently, and you’ll want the best possible fit.
Many of our clients are using early renewals as an opportunity to:
- Switch to shorter-term fixed rates while awaiting deeper rate cuts
- Consolidate high-interest debt into their mortgage
- Reassess amortization structures to improve cash flow
You can learn more in Smart Strategies for Mortgage Transfers in 2025, which outlines how switching lenders mid-term or at renewal can unlock better flexibility.
- First-Time Buyer Incentives Are Expanding
Thanks to the expansion of the First Home Savings Account (FHSA) and the availability of 30-year amortization for insured mortgages, 2025 has become a strategic window for many first-time buyers across BC.
These changes have reshaped the affordability equation — allowing more buyers to qualify with lower monthly payments and additional tax advantages. If you’re planning to buy, it’s also crucial to:
- Understand the stress test still applied at renewal and new purchase
- Get pre-approved and rate-locked to protect against any future rate increases
- Work with a broker who can match you with lenders that recognize part-time or gig income, especially relevant for younger buyers
For details on these programs and guidance on navigating first-time homeownership, see The Rise of 30-Year Amortization for First-Time Buyers.
- Explore Refinance Opportunities — Even with Penalties
If you locked in at peak rates during 2023 or early 2024, a refinance in late 2025 could significantly reduce your monthly payments — even after considering break penalties.
How?
- Some lenders offer blend-and-extend options, where your new rate is averaged with your old rate.
- Others may waive part of the penalty if you stay with the same institution.
- Equity-based refinancing allows homeowners to tap into rising property values in places like Abbotsford, Surrey, or Edmonton, to consolidate debt or finance home upgrades.
Visit Refinancing in a Lower‑Rate Environment: Is Now the Right Time for BC Homeowners? for a full breakdown of cost-benefit calculations and timelines.
- Use Equity Strategically for Investments or Emergencies
With home equity levels still strong in many parts of BC, a HELOC or second mortgage may provide flexible access to capital. Whether you’re funding a business venture, covering education expenses, or planning a renovation, these options can offer:
- Lower interest rates compared to credit cards or unsecured loans
- Interest-only payment options for liquidity
- A backup line of credit during uncertain economic times
You can explore this further in Home Equity Loans & HELOC Options in Surrey & Beyond.
- Be Cautious of “Quick Deals” in a Transitional Market
In a stabilizing market, some sellers and developers may start using pressure tactics to move inventory. Stay alert for:
- “Too good to be true” rate buy-downs without clear disclosure
- Builders offering conditional financing packages
- Rent-to-own schemes with unclear exit strategies
Always run the deal past a licensed mortgage broker who can validate the financial structure, long-term affordability, and exit clauses.
Frequently Asked Questions
Q1: Should I go with a fixed or variable rate in late 2025?
It depends on your risk appetite. Fixed rates offer predictability, especially during a plateauing rate cycle. Variable rates may become attractive again in early 2026 if cuts resume. Talk to your broker to assess real-time lender offerings.
Q2: Is now a good time to buy or should I wait for further price drops?
Home prices in BC have largely stabilized. With inventory still tight in some regions and buyer incentives growing, waiting too long might mean missing the best terms. Focus on your long-term affordability rather than timing the bottom.
Q3: Can I still refinance if I’m self-employed or have non-traditional income?
Yes. Several lenders work with business owners and gig economy professionals. Documentation like 6-12 months of bank statements, NOAs, and T1s can support your file.
Q4: What if my credit score dropped due to rising payments last year?
Private or alternative lenders may still approve you based on equity or stated income. Mortgage brokers can help you rebuild credit through consolidation and short-term solutions while planning your return to an A-lender.
Final Thoughts
Late 2025 offers a rare blend of rate stability, policy incentives, and moderating prices — a combination that could help both buyers and current homeowners improve their mortgage strategy and financial security.
But success in this environment requires planning, personalization, and expert guidance. Whether you’re considering a purchase, renewal, or refinance, now is the time to act with clarity, not fear.
At Sandhu & Sran Mortgages, we serve clients across Abbotsford, Surrey, and Edmonton, offering tailored mortgage solutions backed by real market insight. Let’s assess where you stand — and where you could go.