Start with the monthly payment and the qualifying test, not the listing price. In Victoria right now, that one shift changes what looks affordable.

Most buyers start with a price in mind, often a round number they have heard from a friend or seen in a headline. The lender starts somewhere else: your down payment, your debts, and whether you can carry the mortgage at a rate higher than the one you will actually pay. If you understand those three tests first, the Victoria price bands below start to make practical sense.

What Victoria prices look like right now

These are the Victoria Real Estate Board benchmark prices for September 2026, the latest full monthly release available at the time of writing. A benchmark describes a typical property, so it is a steadier guide than an average sale price, which moves with whatever happened to sell that month.

• Victoria Core condominium benchmark: $547,800

• Victoria Core townhome benchmark: $829,400

• Victoria Core single-family benchmark: $1,280,100

The takeaway: the gap between a typical Core condo and a typical Core house is $732,300. That gap is why the affordability conversation in Victoria is really three conversations, one per property type.

Step one: the down payment

The minimum down payment in Canada is tiered, not a flat percentage. For an insured mortgage, it is 5 per cent on the first $500,000 of the price, plus 10 per cent on the portion above $500,000, up to a price below $1,500,000. At $1,500,000 or more, at least 20 per cent down is required and mortgage insurance is not available.

Worked minimums:

• At $547,800: $25,000 plus 10 per cent of $47,800, which is $29,780

• At $829,400: $25,000 plus 10 per cent of $329,400, which is $57,940

• At $1,280,100: $25,000 plus 10 per cent of $780,100, which is $103,010

With less than 20 per cent down, mortgage default insurance is required. The premium is usually added to the mortgage, so it raises the amount you borrow even though you do not pay it in cash on closing day. Your lender or broker can confirm the exact premium for your down payment.

The takeaway: "5 per cent down" only describes the first $500,000. Above that, the 10 per cent tier adds up fast, so run the tiered math before you fall for a home in the next price band.

Step two: the payment you will actually make

To keep the comparison clean, the table below uses 20 per cent down, a 25 year amortization, and an illustrative contract rate of 4.50 per cent. That rate is an example for illustration only, not a rate quote. Your actual rate will differ, and your lender will confirm it.

• Condo at $547,800: $109,560 down, $438,240 mortgage, about $2,426 per month

• Townhome at $829,400: $165,880 down, $663,520 mortgage, about $3,672 per month

• House at $1,280,100: $256,020 down, $1,024,080 mortgage, about $5,668 per month

These are mortgage payments only. Property tax, insurance, utilities, and, for condos and many townhomes, strata fees sit on top. A condo with a lower mortgage payment but a substantial strata fee can cost more per month than the mortgage line alone suggests, so compare the full monthly picture every time.

The takeaway: judge a home by its total monthly cost, not by its mortgage payment alone.

Step three: the payment the lender tests you at

This is the step that surprises the most buyers. Under the federal stress test (OSFI Guideline B-20), a federally regulated lender must qualify you at the higher of your contract rate plus 2 percentage points, or a 5.25 per cent floor. OSFI confirmed in January 2026 that this rule is unchanged.

At the illustrative 4.50 per cent contract rate, the qualifying rate is 6.50 per cent. The stress tested monthly payments for the same three mortgages would be about $2,935 for the condo, $4,444 for the townhome, and $6,860 for the house. You would not pay those amounts, but you must show you could carry them, alongside your other debts, within the usual housing and total debt service limits.

Borrowing costs also just moved. On October 28, 2026, the Bank of Canada raised its policy rate by 0.25 percentage points, from 2.25 per cent to 2.50 per cent, its first increase since July 2023, and prime moved to 4.70 per cent. Variable rate borrowers feel that change directly. Fixed rates follow bond yields rather than the policy rate, so they do not move in lockstep, but the direction of travel matters for anyone budgeting near their limit.

The takeaway: you qualify at roughly 2 percentage points above your contract rate. If your budget only works at the advertised rate, it may not pass the test.

Step four: the cash you need on closing day

Property transfer tax is usually the largest closing cost in BC. The general rates are 1 per cent on the first $200,000 of fair market value and 2 per cent on the value from $200,000 to $2,000,000.

• Condo at $547,800: $8,956

• Townhome at $829,400: $14,588

• House at $1,280,100: $23,602

Eligible first-time buyers can save up to $8,000 under BC’s first-time home buyers’ exemption, which covers the tax on the first $500,000 of value for homes valued at $835,000 or less, with a partial exemption up to $860,000 and no exemption at $860,000 or above. Conditions apply, including citizenship or permanent residency, BC residency or tax filing tests, and never having owned a principal residence or received the exemption before.

Applied to the examples above, an eligible first-time buyer would pay about $956 on the condo and about $6,588 on the townhome, and would receive no first-time buyer exemption on the $1,280,100 house. A separate newly built home exemption, with a full exemption up to $1,100,000 and a partial exemption up to $1,150,000, may be worth checking for new construction. Confirm which exemption, if any, applies to you with your lawyer or notary before you rely on it.

The takeaway: closing costs are not a rounding error in Victoria. Budget them in cash, alongside your down payment, before you write an offer.

A quick way to use these numbers

• If your down payment is under $60,000, the condo band is where the math most often works, and the first-time buyer exemption can cut closing costs sharply if you qualify.

• If your down payment is around $100,000 and your qualifying income supports a payment in the mid $4,000 range at the stress test rate, the townhome band comes into view.

• If you are looking at a typical Core house, the cash picture changes twice over: a six figure down payment at 20 per cent, and a stress tested payment near $6,860 per month on the example above.

None of this replaces a pre-approval. A broker or lender runs your actual income, debts, down payment, and credit through the same tests and gives you a maximum price with real numbers attached. That conversation is free, it costs you nothing to have early, and it keeps you from touring homes that were never in reach.

What This Means for Buyers

• Get pre-approved before you set a price target. The qualifying rate, not the advertised rate, decides your ceiling.

• Compare total monthly costs, including strata fees, tax, insurance, and utilities, not just the mortgage payment.

• Keep closing costs in cash. Property transfer tax alone runs from about $8,956 to $23,602 across the three examples above, before legal fees, inspections, and moving costs.

• If you are a first-time buyer, check the exemption thresholds early. The difference between a home at $835,000 and one at $860,000 or above can be the full $8,000 saving.

What This Means for Sellers

• Buyers near their qualifying limit are sensitive to price bands. A price that pushes a buyer into the next down payment tier or past the $860,000 first-time buyer exemption threshold can shrink your buyer pool more than the dollar difference suggests.

• Pricing against the current benchmark, not last spring’s hopes, matters most for buyers who must pass the stress test. An overpriced listing does not just sit longer, it fails more buyers’ math.

• Clear strata documents and realistic pricing help buyers move from pre-approval to offer with confidence, which matters in a market with 3,811 active listings and buyers who can afford to be selective.

Clarity Before Commitment

Affordability in Victoria is not one number. It is a down payment tier, a monthly payment you will make, a higher payment you must qualify at, and a closing day cash bill, all tested against the property type you are actually buying. Work through those four steps in order, get a pre-approval with real numbers, and the right price band usually identifies itself.

With more than 18 years in Greater Victoria real estate, from development and land planning to helping families buy and sell, I am here to make the process simpler at every step.

Have questions about your next steps? Reach out for a no-pressure chat.

This post is general information only and is not legal, tax, or financial advice. For advice on your specific situation, please speak with a qualified professional.

Market figures: Victoria Real Estate Board, September 2026 statistics (Victoria Core benchmarks: single-family $1,280,100, condominium $547,800, townhome $829,400; 3,811 active listings); Bank of Canada, October 28, 2026 policy rate decision (policy rate raised by 0.25 percentage points from 2.25 per cent to 2.50 per cent; prime 4.70 per cent); OSFI Guideline B-20 mortgage stress test (qualifying rate is the greater of contract rate plus 2 percentage points or a 5.25 per cent floor, confirmed unchanged January 2026); Province of British Columbia property transfer tax rates and first-time home buyers’ exemption thresholds. Mortgage payments are illustrative only, calculated at an illustrative 4.50 per cent contract rate over a 25 year amortization with 20 per cent down, and are not a rate quote.

Matt Peulen | RE/MAX Camosun | 250-589-5991 | [email protected] | www.mattpeulen.com

Have questions about your next steps? Contact Matt through the contact page or email him directly.