vector - Getting result in metric from QGIS Distance Matrix tool in QGIS?

I'm trying to calculate the distance between points in layer with distance matrix tool. And keep getting strange results no matter what. Like this
MASTER ------------SLAVE ---------------- DISTANCE --------- SHOULD BE
Metrotown ---------Knox Mountain ------ 0.036069979------------ 48.2 km
Metrotown -------- Central --------------- 0.048071058------------- 29.3 km
Metrotown -------- Rosedale ------------ 0.050883421------------- 60.1 km
Metrotown -------- Kelowna -------------- 0.051697257------------ 340.4 km

Metrotown -------- Ocean Park --------- 0.054471001------------- 29.1 km
Metrotown -------- Langley -------------- 0.055017692------------- 18.7km

First my thought was that the distance is in degrees not in meters. So I tried different CMSs but it didn't change anything. Than I tried to duplicate layer and calculate distances between points between two layers. But nothing changed. NAD83 CMS gave me another unrealistic result ( smth like 5665565, 5675656, etc)

What CMS I should use?

I even tried to do this in postgis with ST_Distance and still getting same results.