Vancouver Island Housing Market 2026: What Buyers Need to Know

Dean Garrett • March 9, 2026

After several years of sharp price increases, rate volatility, and challenging affordability conditions, Vancouver Island's housing market in 2026 looks meaningfully different for buyers than it did in 2021 or 2022. The question I hear most often is: is now a good time to buy?

The honest answer is that it depends on your situation, your timeline, and how you approach the process. Here is what the market actually looks like right now, and what it means for buyers across Courtenay, Comox Valley, Campbell River, and Vancouver Island broadly.


Where Vancouver Island Prices Sit in 2026

Vancouver Island has seen a moderation from the peak prices of the pandemic era. Benchmark prices across the island came down from their 2022 highs, stabilized through 2023 and 2024, and have shown gradual improvement through 2025 and into 2026 as interest rates declined from their peak levels.


Courtenay and the Comox Valley remain some of the more accessible markets on the island relative to Victoria and Nanaimo, but they are far from inexpensive. Single-family detached homes in the Comox Valley regularly trade above $700,000. Condos and townhomes offer more accessible entry points for first-time buyers and those relocating from more expensive markets.

Campbell River continues to attract buyers priced out of the southern island. Nanaimo, with its ferry connection to the mainland, remains one of the highest-volume markets on the island.


The Rate Environment in 2026

The Bank of Canada moved aggressively to cut rates through 2024 and into 2025 after the inflation-fighting cycle of 2022 and 2023. As of early 2026, the overnight rate is at 2.25%, significantly down from its peak of 5% in 2023.


Five-year fixed rates from institutional lenders are currently in the 4.25% to 4.75% range depending on the lender, the insured versus uninsured status of the mortgage, and your qualification profile. Variable rates are more competitive than they have been in several years.


For buyers who were sitting on the sidelines waiting for rates to come down, 2026 represents a meaningfully improved environment compared to 2022 and 2023. Monthly carrying costs are lower. The stress test qualifying rate is more achievable. And sellers, after several years of market softness, are often more negotiable than they were at peak.


The Stress Test in 2026

The federal mortgage stress test continues to apply to all insured mortgages and most uninsured mortgages at federally regulated lenders. You must qualify at the higher of your contract rate plus 2%, or 5.25%.


With contract rates currently in the 4.25% to 4.75% range, most buyers are being stress tested at 6.25% to 6.75%. This is lower than the qualifying rates of late 2023, which meaningfully improves maximum purchase amounts for many buyers.


What Vancouver Island Buyers Should Focus On in 2026

The buyers who do well in 2026 are the ones who are prepared before they start searching. Here is what that looks like in practice.

Get a real pre-approval before you start looking at properties. Not an online estimate. Not a quick conversation with your bank. A full pre-approval with documents reviewed and a lender commitment in place. In a market where competitive offers are becoming more common again in desirable communities, a pre-approved buyer has a real advantage.


Understand your true purchasing power. The stress test and your debt service ratios together determine what you actually qualify for. I run these numbers across multiple lenders for every client, because the difference between lenders on how they treat income, rental income, and other variables can meaningfully change the outcome.


Think beyond the rate. Vancouver Island's market includes rural acreages, waterfront properties, older housing stock, strata units, and new construction. Lenders treat these differently. Some properties that qualify easily at one lender will face restrictions at another. Working with a broker who knows these differences is more valuable here than in a uniform urban market.


Consider your long-term strategy. If you are buying in 2026 with a 25-year mortgage and a plan to live on Vancouver Island for the next 20 years, this is also the time to think about how your mortgage will be structured over that period. Are you set up to build equity efficiently? Are there strategies available to you that your bank will never mention?


For Existing Vancouver Island Homeowners

If you already own a home on Vancouver Island, 2026 is an important year to review your mortgage situation. A large number of mortgages taken out in 2021 at historically low rates are coming up for renewal in 2025 and 2026. If yours is among them, your renewal rate will likely be higher than what you are currently paying.


Do not simply sign the renewal your lender sends. The right move is to review the full market before your maturity date, model the options across multiple lenders and term lengths, and consider whether your renewal is also an opportunity to restructure your mortgage in a way that better supports your financial goals going forward.



Talking to a Broker Who Knows Vancouver Island

I have helped buyers, refinancers, and investors across Courtenay, Comox Valley, Campbell River, Nanaimo, and all of Vancouver Island navigate their mortgage decisions. If you want a clear, no-nonsense conversation about what your options look like in today's market, I am happy to have it.

Book a free consultation or call (250) 218-4135.

A man wearing a black shirt is smiling for the camera
Dean Garrett

Mortgage Professional

How to Finance a Spousal Buyout After Separation or Divorce

By Dean Garrett • October 14, 2026
Mortgage Options During Divorce or Separation: What You Should Know If you’re going through—or considering—a divorce or separation, you may not realize that there are mortgage solutions specifically designed to help one party keep the home . For many people, the family home is their largest asset and where most of their equity is tied up. In situations like this, a spousal buyout program can allow one person to refinance the property and buy out the other party’s share—often up to 95% of the home’s value . This option can work whether you want to keep the home or your former partner does. What Is the Spousal Buyout Program? The spousal buyout program is a refinancing option that allows one owner to purchase the other owner’s share of the property as part of a separation or divorce settlement. In some cases, it can also be used to pay off jointly held debts, as outlined in a legal agreement. Below are some of the most common questions about how the program works. Is a finalized separation agreement required? Yes. Lenders require a signed and finalized separation agreement that clearly outlines how assets and debts are to be divided. This document is essential for approval. Can the funds be used for renovations or personal debts? No. Funds from a spousal buyout can only be used to: Buy out the other owner’s share of equity Pay off joint debts specifically listed in the separation agreement They cannot be used for renovations, personal loans, or unrelated expenses. How much equity can be accessed? The maximum amount available is the amount required to: Buy out the other party’s agreed-upon share of equity Pay off any joint debts listed in the agreement This amount cannot exceed 95% loan-to-value . What is the maximum loan-to-value allowed? The maximum loan-to-value is the lesser of : 95%, or The remaining mortgage balance plus the required buyout and joint debt payout The property must be the primary owner-occupied residence . Do all parties need to be on title? Yes. All individuals involved in the buyout must currently be registered on title. Your solicitor will confirm this through a title search. Does this only apply to married or common-law couples? No. While commonly used for married or common-law couples, the program may also apply to siblings or friends who jointly own a property and need one party to exit the mortgage. These cases are typically reviewed on an exception basis and require insurer approval. If no separation agreement exists, the purchase contract must clearly outline the buyout terms. Is a full appraisal required? Yes. A physical, on-site appraisal is required to confirm the property’s value before the mortgage can be finalized. Final Thoughts This overview covers some of the most common questions about mortgage options during separation or divorce, but every situation is different. Working with an independent mortgage professional gives you access to multiple lenders, specialized programs, and unbiased advice—so you can clearly understand your options and choose what’s best for your future. If you’re navigating a separation and need guidance around keeping or selling the home, feel free to connect anytime. All conversations are handled with discretion and confidentiality, and I’d be happy to walk you through your options.

How to Legally Assign a Construction Mortgage

By Dean Garrett • October 7, 2026
Why More Mortgage Options Matter—Especially for Assignment Purchases One of the biggest advantages of working with an independent mortgage professional is access to choice. Instead of being limited to one lender and one set of products, mortgage brokers work with multiple lenders—each with different guidelines, risk tolerances, and mortgage solutions. That flexibility becomes especially valuable when your situation doesn’t fit neatly into a “standard” box. A great example of this is purchasing new construction through an assignment contract . Why Assignment Purchases Can Be Challenging Assignment purchases are often viewed as higher risk by traditional lenders. Rather than declining these deals outright, many lenders quietly make them difficult by adding layers of conditions, restrictions, or uncertainty. This can lead to delays, frustration, or financing falling apart late in the process. The Good News There are lenders—available exclusively through the broker channel —that have clear, favourable policies for assignment purchases. With the right lender and proper planning, these transactions are absolutely doable. Typical Financing Requirements for Assignment Purchases While every situation is unique, many lenders that allow assignment financing look for the following: Standard purchase qualification, including income verification, credit, and down payment Assignments accepted at either the original purchase price or current market value Minimum 620 credit score , with no prior bankruptcies or consumer proposals The full down payment must come from the purchaser —seller incentives cannot be used Required Documentation To secure financing, lenders typically require: The original purchase agreement signed by all parties The MLS listing (if applicable) The assignment agreement signed by the builder, original purchaser, and new buyer Any side agreements outlining changes to the purchase price A full appraisal to confirm value This list isn’t exhaustive, but it highlights that while assignment purchases require more coordination, they are very achievable with the right lender and guidance. Final Thoughts Assignment contracts can open doors to great opportunities—but only if your financing supports the transaction. This is where access to multiple lenders and specialized policies makes a real difference. If you’re considering purchasing new construction through an assignment, or if you’d like to explore more traditional purchase options, feel free to connect anytime. I’d be happy to walk you through the mortgage products available and help you choose an option that doesn’t limit your financing possibilities.