People looking to buy property in Sidney, British Columbia, are facing stricter mortgage rules as banks and lenders react to a cooling regional real estate market. According to the Victoria Real Estate Board, regional property sales dropped by 19.7 per cent in January 2026 compared to the same time last year. There are now more homes available for sale, but fewer people are completing purchases.
While there were 2,624 active listings across the region at the end of the month, the benchmark price for a typical single-family house in the Victoria Core fell by 2.5 per cent to $1,265,500. Although Sidney benchmarks are historically lower, typically ranging between $900,000 and $1 million, the regional price drop has caused some lenders to become more cautious. This shift sometimes requires buyers to provide larger down payments to make up for “appraisal gaps” between the sale price and the bank’s own valuation, making it harder for residents to get pre-approved for a loan or to renew existing mortgages with new lenders.
Local specialists at NexGen Mortgages note that these changes are particularly important for Sidney, where about 45 per cent of the residents are 65 or older. Many of these seniors are trying to move into smaller homes or condos, but they may find that their borrowing power has decreased as market conditions shift and equity from their previous homes in the Victoria Core diminishes.
Condo sales in the region saw the largest decline, falling by over 25 per cent in January 2026. With more inventory on the market and fewer buyers, lenders are expected to keep a close eye on property values throughout the year to ensure that loans match the current worth of the homes.
