Mortgage rate

A mortgage rate is the interest rate a lender charges on a mortgage loan. Rates are set by lenders based on market conditions, the borrower's credit, the term and whether the rate is fixed or variable. They are influenced by the Bank of Canada policy rate but are not set by government.

How BC law treats it

The main legal limits are the criminal interest rate in Criminal Code s. 347, now a 35 percent annual percentage rate (since January 1, 2025), with exemptions under the Criminal Interest Rate Regulations for commercial loans of $10,000 to $500,000 at no more than 48 percent and for commercial loans over $500,000, and the federal Interest Act, including s. 8, which restricts higher rates on arrears for mortgages on real property.

What it means for your business

Business borrowers should compare the full cost of borrowing, including fees and prepayment penalties, not just the headline rate.

Risks and common mistakes

Private loans with heavy fees can push the effective rate toward the criminal rate, putting the lender's claim to interest at risk.

For the full explanation, see our entry on Mortgage.

General information about British Columbia and Canadian law, current to October 2026. It is not legal advice.