The speculation and vacancy tax (SVT) rates depend on the homeowner’s tax residency. For the years 2019 to 2025, the speculation tax rate in B.C. was:

• 0.5% for Canadian citizens and permanent residents

• 2% of the property’s assessed value for foreign owners, and untaxed worldwide earners

For 2026 and the subsequent years, the speculation tax in B.C. has been raised to:

• 1% for Canadian citizens and permanent residents

• 3% of the property’s assessed value for foreign owners, and untaxed worldwide earnersThis is a friendly reminder for all City of Vancouver property owners regarding the upcoming deadlines for the Empty Homes Tax and Advance Property Taxes, both due by February 3rd, 2026.  Even if your property is occupied or exempt from the tax, filing the declaration is required through the City’s EHT portal Empty Homes Tax | City of Vancouver.  Make sure to file before the deadline, otherwise, the City of Vancouver will deem the property as vacant and the tax will apply!

Advance Property Taxes for Vancouver property owners are also due on February 3rd, 2026, but there is no need to claim the Homeowner Grant when paying this portion.  The Home Owner Grant will be claimed upon payment of the full tax in July.  More information can be found at Understand your property tax notice | City of Vancouver.

Looking ahead to 2026, most economists expect Canadian interest rates to remain relatively stable. The prevailing forecast is that the Bank of Canada will hold its policy rate near today’s neutral range for much of the year, rather than aggressively cutting or hiking. Inflation has been cooling toward the Bank’s 2% target, economic growth is expected to be modest, and employment conditions—while softer than the peak—remain resilient. Together, these factors point to a “wait-and-see” approach from policymakers.

For home buyers, this stability brings welcome predictability. Borrowing costs are unlikely to fluctuate dramatically, making it easier to plan purchases and financing strategies with confidence. While mortgage rates may move slightly up or down depending on bond markets, most experts do not expect sharp increases in 2026. This environment favors buyers who have been sitting on the sidelines, especially those who value certainty over trying to time the market perfectly.

For home sellers, steady interest rates typically support steady demand. Rather than a sudden surge or pullback in buyer activity, the market is expected to improve gradually as confidence returns. Pricing accurately and preparing homes well will remain key, as buyers are still value-conscious. Sellers who align with current market conditions—rather than last cycle’s peak pricing—are more likely to attract serious, qualified buyers.

Overall, 2026 is shaping up to be a year of balance rather than extremes. Stable rates tend to create healthier real estate markets, where decisions are driven by lifestyle, timing, and long-term goals rather than urgency or fear. Whether you’re buying, selling, or simply planning your next move, understanding this rate environment can help you make smarter, more confident real estate decisions.