Bridge Financing in Abbotsford, BC
Bridge financing in Abbotsford covers your next down payment with equity from the home you're selling, so you can take possession before your sale funds. You might be selling in Langley or Surrey to buy in Auguston or on Sumas Mountain, or moving from Clearbrook to something bigger in Townline Hill. We plan the bridge and the new mortgage as one file, timed to both closing dates, so the money arrives where it's needed on time.
To bridge, do I have to liquidate my assets?
Usually you don't, because the bridge is secured by the equity in the home you've sold, so your investments and registered savings can stay put. Lenders will still check that you can pay closing costs, including legal fees and property transfer tax, so show them that cash early. In BC that tax runs 1% on the first $200,000 and 2% on the next portion up to $2 million. A mortgage pre-approval in Abbotsford from us counts this cash and your expected sale proceeds before you shop.
What does a bridge loan cost, and how long can it last?
Most lenders cap the bridge at a few months, often 90 to 120 days, and charge a higher rate on it than on the mortgage, with some adding a setup fee. Because the bridge is repaid from your sale proceeds on closing day, you pay for it only for the days between closings, so a shorter gap costs you less. We give you the dollar figure for your own gap before you sign.
If we sell and buy, can we keep our current mortgage?
You can often port it, which moves your rate and term to the new home and avoids the prepayment penalty for breaking it. If the Abbotsford home costs more than your current balance covers, a port and blend adds the new money at a current rate. You'll need to qualify again for the larger amount, and the lender can test you at the greater of your contract rate plus 2% or 5.25%. Ask your lender how many days you have to port once the sale closes.
Book a free call to plan your Abbotsford move
Share your sale and purchase prices along with the dates you're aiming for, and we'll show you the bridge amount and its cost. Book a free call or ring us at 604-262-3500.
Flow Mortgage Co. arranges mortgages through BRX Mortgage Inc., licensed with the BC Financial Services Authority.
Frequently asked questions
What if my sale still has a subject on it?
Most lenders hold off on a bridge until the sale is firm. Keep your purchase conditional until then if the seller agrees, and call us before you remove subjects on either side.
Should I refinance to fix up my place before selling?
It can pay off if the work adds more to your price than it costs, including any fee to change your mortgage mid-term. Our mortgage refinance in Abbotsford page walks through that decision.