For the last few years,  homebuyers in Vancouver have been playing a strategic waiting game. As a top-rated real estate agent in Vancouver, I get it. Between stress tests and higher lending rates, it’s hard to qualify for a mortgage, leaving people desperate to get out of the rental market.

The latest decision from the Bank of Canada to hold the interest rate at 2.25 percent, signalling stability after cuts, brings some relief and predictability. Buyers remain cautious amid high prices and ongoing trade and economic uncertainty. However, the interest rate hold may be enough to bring some homebuyers and sellers off the sidelines.

As a long-time real estate agent in Vancouver, I know how quickly the market can shift. Amidst all the anticipation, home buyers need to be aware that many people are waiting for a chance to jump into the market. At least part of the reason the Bank of Canada was cautiously and slowly lowering interest rates is to avoid giving the real estate market an unnecessary jolt, which could drive up housing prices substantially.

It’s a delicate balance of math and timing. The mortgage stress test is 2% higher than the interest rate. When buying a home, homeowners must consider whether they meet the stress test requirements and whether mortgage payments are sustainable over the long term.

Buyer psychology is keeping many potential homeowners on the sidelines. The prevailing hope seems to be that both interest rates and real estate prices will go down—but what typically happens, at least in Vancouver, is that housing demand increases as interest rates go down, causing home prices to go up and eating up any savings realized by a lower interest rate.

It’s the scenario the Bank of Canada is continually facing. While inflation seems to be heading in the right direction, the bank is still taking a cautious approach to avoid inflating the market. Potential homebuyers need to consider if it’s worth investing when the market is somewhat subdued and then hoping for lower rates—or waiting until interest rates drop decisively, which could quickly push up home prices. At the moment, the bank has signalled it’s done with cuts for 2026, pending any economic turbulence.

Vancouver hit its boiling point at a lending rate of 7.20% (Canada’s general consumer prime rate). That’s what it took to stop skyrocketing prices. The market has now evened out, especially for single-family residences.

The high interest rate did not trigger a plummet or crash. Instead, Vancouver’s housing market feels a lot like jumping up and down on an ascending escalator—not something we endorse or recommend. Basically, there will be some hiccups in the pricing, but overall, market prices continue to climb in a stable, predictable manner.

In a nutshell, waiting for rates to drop or markets to cool might not be a sound strategy. Homeowners who are financially ready should consider jumping in and taking advantage of Vancouver’s conditions, which currently offer selection, time, and room to negotiate.

Real estate metrics in BC suggest prices could rise by around 7%, a consideration as you wait for the interest rate to drop. People on the fence about buying a home can take the first steps by connecting with one of our experienced realtors. It’s essential to do the math and determine if saving on interest is worth spending more on the home. There are tools and solutions to help Canadians take advantage of better interest rates when they roll around.

Find a Home in Vancouver

A Canadian home remains a reliable, tax-exempt asset—and every dollar means more equity in your property. Want to learn more about purchasing a townhome in Vancouver? Connect with Ariane Benjamin at 604.779.1500