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Are you hunting for the best mortgage rates in Penticton, B.C., Canada? LowestRates.ca is here to help you get the cheapest mortgage rates on the market. We work with the best mortgage lenders in Penticton and across Canada, making comparison shopping easy.
LowestRates.ca allows you to compare mortgage rates in Penticton from 50+ banks and brokers across Canada. Just tell us whether you’re buying a home, renewing or refinancing and click the “Get Started” button above.
If you’re looking to deepen your knowledge of the mortgage process before starting your application, we can help with that, too. Read on for important insights that will help you choose the right financing option.
When you’re ready to shop, use our fast, free online quote tool above to see current mortgage rates in Penticton.
Check out today's best mortgage rates in Canada by type and term.
| Insured ? | 80% LTV ? The rates in this column apply to mortgage amounts between 65.01% and 80% of the property value. The home must be owner-occupied and have an amortization of 25 years or less. You must have purchased it for less than $1 million. These rates are not available on refinances. Refinances require "Uninsured" rates. | 65% LTV ? The rates in this column apply to mortgage amounts that are 65% of the property value or less. The home must be owner-occupied and have an amortization of 25 years or less. You must have purchased it for less than $1 million. These rates are not available on refinances. Refinances require "Uninsured" rates. | Uninsured ? | Bank Rate ? | ||
|---|---|---|---|---|---|---|
Insured 6.44% | 80% LTV 5.29% | 65% LTV 5.29% | Uninsured 7.35% | 6.59% | ||
Insured 5.54% | 80% LTV 5.59% | 65% LTV 5.59% | Uninsured 5.84% | 6.19% | ||
Insured 4.79% | 80% LTV 4.79% | 65% LTV 4.79% | Uninsured 4.99% | 5.29% | ||
Insured 4.74% | 80% LTV 4.84% | 65% LTV 4.84% | Uninsured 4.89% | 5.19% | ||
Insured 4.44% | 80% LTV 4.64% | 65% LTV 4.44% | Uninsured 4.44% | 4.84% | ||
Insured 4.89% | 80% LTV 5.29% | 65% LTV 5.29% | Uninsured 5.89% | 5.9% | ||
Insured 5.69% | 80% LTV 5.84% | 65% LTV 5.84% | Uninsured 6.09% | 7.25% | ||
Insured 5.75% | 80% LTV 6.15% | 65% LTV 6.05% | Uninsured 6.05% | 8.35% | ||
Insured 5.65% | 80% LTV 5.8% | 65% LTV 5.7% | Uninsured 5.7% | 6.19% | ||
Insured N/A | 80% LTV N/A | 65% LTV N/A | Uninsured N/A | N/A | ||
Insured 5.25% | 80% LTV 5.25% | 65% LTV 5.25% | Uninsured 5.25% | N/A |
5.70%
4.69%
7.24%
On LowestRates.ca, you can start an application for different kinds of mortgage products, so it’s important to understand what financing option is the best fit for you. Depending on the size of your down payment, your mortgage will be considered either conventional or high-ratio. So, which one is likely to land you the cheapest mortgage rates in Penticton?
Conventional mortgage: Your mortgage is considered conventional if your down payment is at least 20% of your new home’s purchase price. This means your mortgage will be 80% or less of the amount needed to complete the purchase. If your mortgage is conventional, you don’t need to buy mortgage default insurance.
High-ratio mortgage: Your mortgage is considered high-ratio if your down payment is below 20% of the home’s purchase price. This means your mortgage represents more than 80% of the amount needed to complete the purchase. If your mortgage is high ratio, purchasing mortgage default insurance is mandatory. You can buy mortgage default insurance from the Canada Mortgage and Housing Corporation (CMHC), Sagen or Canada Guaranty.
Whatever type of mortgage option you select, LowestRates.ca can help you find the lowest mortgage interest rates in Penticton. Just scroll to the top of this page and enter a few key details about your mortgage needs. You’ll get quotes from multiple lenders and brokers in minutes. It’s the easiest way to run a mortgage rates comparison in Penticton.
| Date | Average Conventional Rate | Average High Ratio Rate |
|---|---|---|
| 07/23 | 5.56% | 5.17% |
| 08/23 | 5.84% | 5.45% |
| 09/23 | 6.16% | 5.70% |
| 10/23 | 6.51% | 6.12% |
| 11/23 | 6.44% | 5.94% |
| 12/23 | 6.28% | 5.80% |
| 01/24 | 5.66% | 5.28% |
| 02/24 | 5.52% | 5.12% |
| 03/24 | 5.34% | 4.95% |
| 04/24 | 5.34% | 4.87% |
| 05/24 | 5.38% | 4.95% |
| 06/24 | 5.12% | 4.94% |
Last Updated: July 1, 2024
One essential difference in mortgage products is whether the interest rate changes or stays steady throughout your mortgage term. This is the main difference between fixed and variable mortgage rates. But there’s a little more to it than that. Interest rates vary between these mortgage types, so it’s smart to know the difference if you want to get the best mortgage rates on your Penticton property.
Fixed-rate mortgages: With a fixed-rate home loan, you lock in your mortgage rate at the start and it never changes during the mortgage term. Fixed mortgage rates in Penticton and across Canada are generally slightly higher than variable rates, but there’s a good reason for that. The lender absorbs more of the risk of fluctuating interest rates in the overall economy. If interest rates go down, you could miss out on some savings, but if interest rates go up, you’re protected. This security and predictability make fixed-rate mortgages the most popular choice among Canadian homebuyers.
Variable-rate mortgages: With a variable-rate home loan, your mortgage rate adjusts according to a formula provided in your mortgage contract. It’s typically tied to the lender’s prime rate, which changes along with larger economic trends. Variable mortgage rates in Penticton, as throughout Canada, are usually slightly lower than fixed mortgage rates. But a variable-rate mortgage leaves the homebuyer more susceptible to market swings, which can lead to higher interest payments and make it more expensive to pay off your home. However, if interest rates go down, a buyer with a variable-rate mortgage can benefit. Variable-rate mortgages provide less stability and certainty than fixed-rate mortgages, making them a less appealing option for most homebuyers.
| Month | Fixed | Variable |
|---|---|---|
| 07/23 | 5.33% | 6.41% |
| 08/23 | 5.59% | 6.44% |
| 09/23 | 5.79% | 6.53% |
| 10/23 | 6.06% | 6.62% |
| 11/23 | 5.96% | 6.66% |
| 12/23 | 5.83% | 6.70% |
| 01/24 | 5.36% | 6.49% |
| 02/24 | 5.25% | 6.43% |
| 03/24 | 5.14% | 6.52% |
| 04/24 | 5.13% | 6.52% |
| 05/24 | 5.14% | 6.53% |
| 06/24 | 4.96% | 6.13% |
Last Updated: July 1, 2024
To lock in the lowest Penticton home mortgage rates, it helps to understand how rates are determined. When lenders look at your mortgage application, they weigh several factors in deciding whether to approve it, how much to lend you, and what kinds of interest rates to offer.
Here are the main factors lenders consider when to calculate your Penticton mortgage rates:
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The size of your Penticton mortgage will depend on the market where your new home is located, your down payment amount and your mortgage interest rate. For an example, see LowestRates.ca’s handy mortgage payment calculator.
Sales data from September 2021 shows the benchmark price for a single-family detached home in the south Okanagan region is $675,600, according to the Association of Interior Realtors. Assuming you make a 20% down payment of $135,120, the principal balance on your mortgage would be $540,480. To calculate the total cost of your mortgage, you’ll need to add interest payments to this figure, based on your Penticton house mortgage rates.
If you plan to make a down payment less than 20% of your home’s purchase price, you’ll need to factor in the cost of the required CMHC mortgage insurance.
Home prices in Penticton have been on the rise in recent years, along with prices across Canada. The benchmark price for a single-family detached home in the south Okanagan region is $675,600 according to September 2021 sales data reported by the Association of Interior Realtors. This represents a 37.1% year-over-year increase from the same period last year.
The benchmark price for a townhome is $447,200, and for a condo, it’s $354,900, representing price jumps of 27.5% and 20.5% respectively over the same month a year ago.
Closing costs are all the assorted expenses that allow you to finalize your home purchase. You should expect to spend anywhere from 1.5% to 4% of your home’s sale price on closing costs, beyond the down payment amount.
Closing costs can include:
Penticton homebuyers will also need to factor into their closing costs the British Columbia provincial land transfer tax. There rates are based on your home’s fair market value:
Use LowestRates.ca’s land transfer tax calculator to find the exact cost of the property transfer tax on your Penticton home.
An additional 20% tax applies to property sales within certain parts of British Columbia for foreign nationals and corporations, but fortunately this does not apply to homes within Penticton.
British Columbia offers a homeowner grant to reduce the cost of your property tax. This applies to provincial homeowners who pay municipal property tax and who are Canadian citizens or permanent residents. The grant only applies to your principal residence (summer cottages and rental properties are excluded). To receive the full grant amount, your home’s assessed value must be $1,625,000 or less. For homes in Penticton the full grant amount is $770. You have to apply to the province to receive the grant each year. Additional grants are available to homeowners who are veterans, disabled, senior citizens, the spouse or relative of a deceased homeowner, and homeowners living with a disabled spouse or relative.
The amortization period is the full amount of time it will take you to pay off your Penticton mortgage loan. The mortgage term is the time period you’re committed to a specific lender and mortgage contract.
In Canada, amortization periods are typically 25 years. This is the longest timeline the Canada Mortgage and Housing Corporation allows if you need to buy CMHC mortgage default insurance (for buyers making a down payment less than 20% of their home’s purchase price).
Within the amortization period, buyers usually have multiple mortgage terms and mortgage contracts that must be renewed until the loan is paid in full. Mortgage terms can range from six months to 10 years, but five years is most common.
Open and closed mortgages are designed to meet different homebuyer needs. They also play a role in today’s mortgage rates in Penticton.
Open mortgages have the most built-in flexibility about the rate of repayment. They don’t penalize you for making accelerated payments or paying off your mortgage early. These types of mortgages are ideal for homebuyers who know they will want to move to a new home, sell or refinance before their mortgage term is up.
Closed mortgages are the most popular choice of Canadian homebuyers. With a closed mortgage, you face more penalties if you decide to pay off your home loan early, refinance or make accelerated payments, but in exchange you’re likely to see lower mortgage rates for your Penticton home purchase. Many lenders allow some limited extra payments on their closed mortgage products, with no penalties if you follow certain guidelines. If you want to make extra payments, just be sure you understand what’s allowed in your mortgage contract.
Penticton lies in the southern Okanagan Valley of British Columbia between Okanagan and Skaha Lakes. The region’s sunny climate, vineyards, wineries and beaches offer an appealing lifestyle for Penticton’s 33,000 residents. The cost of living in Penticton depends on whether you have dependents, own a home or rent, and drive a personal vehicle or rely on transit.
The benchmark price for a single-family detached home in the south Okanagan region is $675,600 according to September 2021 sales data reported by the Association of Interior Realtors. This figure is high compared to home prices in other parts of the country, but affordable by provincial standards.
British Columbia drivers pay the highest rates for auto insurance in Canada, so if you own a vehicle, be prepared to factor this into your cost of living. According to the Insurance Bureau of Canada, the average annual cost of auto insurance premiums in B.C. is $1,832. Drivers in the province are required to purchase their mandatory minimum auto coverage through a crown corporation called Autoplan, with the option to add additional coverage through private insurance providers.
Finding the lowest mortgage rates in Penticton is a great way to save money on your home purchase. However, there are other factors that will impact how much you spend. Here are a few other factors that can impact your mortgage costs:
Prepayment privileges: These are terms in your mortgage contract that explain what loan repayments are permitted without penalty, beyond the monthly minimums.
Penalties: All mortgage contracts have penalty fees that may kick in if you don’t follow certain rules. Common penalties include fees for paying your mortgage in full ahead of schedule, selling or refinancing before the mortgage term is up, or making more rapid repayments not allowed under your prepayment privileges.
Portability: This allows you to transfer your mortgage to a new home without facing penalty fees. Typically, a new mortgage is added to your old one to cover any additional cost. If you think you would like to move to a new home and sell your old one during your mortgage term, you can negotiate with your lender for a portable mortgage before signing the contract.
LowestRates.ca works with 50+ banks and brokers to bring you competitive mortgage rates from lenders in Canada. We work with our partners to obtain their best deals and offers, and then we let them compete for your business. All you have to do is answer a few questions, and in minutes you’ll be provided with today’s mortgage rates. There’s no obligation, but you can choose to speak with our broker partner to secure your best rate and see if you're eligible for more savings.
Yes, it’s safe — you no longer need to visit a bank branch or mortgage broker’s office in person to apply for a mortgage. It’s becoming increasingly common for Canadians to apply for mortgages online. LowestRates.ca only works with reputable, trustworthy financial institutions. Your credit score won’t be affected and your information is secure. We don’t share your information with anyone unless you want to connect with a mortgage broker. We take care of the heavy lifting by comparing the market for you and can connect you with the best mortgage lenders in the country.
We have a strong selection of lenders on LowestRates.ca including the big banks and many independent providers and we’re adding more lenders all the time. This ensures we’re always delivering you a competitive rate. Even if you’re not ready to commit to anything, you can use our site as a starting point for research (it’s totally free, and you’re under no obligation).
The better informed you are, the more likely you'll negotiate a better deal for yourself. And, really, that’s what we care about the most.
Jane Switzer
About the Author
Jane Switzer is a writer, editor and native Torontonian. She got her start working in daily journalism, and is now a Content Manager for LowestRates.ca.
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