Bridge Financing in Burnaby, BC
Bridge financing in Burnaby gives you access to the equity in your current home so you can pay the down payment on your next one before your sale has closed. If you own a Metrotown or Brentwood condo and plan to fix it up, sell it and buy a house in North Burnaby or Capitol Hill, the order of those steps matters. We set up the renovation money, the bridge and the new mortgage in the right order, so each step is paid for before it starts.
I want to fix up my place, sell it and buy something bigger. How do we pay for it?
A refinance or a home equity line of credit can pay for the work before you list, and you can usually borrow up to 80% of your home's value in a refinance. Before you add new debt, check what your current lender charges to change the mortgage mid-term, because that fee can eat into what the upgrades add to your price. Our mortgage refinance in Burnaby page covers that step. Once the condo sells, the sale pays off the refinance and the bridge covers any gap before your purchase closes.
Do I have to liquidate my investments to bridge?
In most cases you won't need to, because the bridge is secured against the equity in the Burnaby home you've sold, so your savings and registered accounts can stay invested. Lenders will still want proof you can cover closing costs such as legal fees and property transfer tax, so keep that amount in cash. In BC the tax is 1% on the first $200,000 and 2% on the part from $200,000 to $2 million, so run that figure on the new home's price before you remove subjects.
If we sell and buy, what penalties do we get hit with?
Paying off your mortgage early to sell usually triggers a prepayment penalty, and its size depends on your lender and whether your rate is fixed or variable. Fixed-rate penalties at some lenders can be steep, so request the payout statement before you list and keep it with your sale paperwork. If the penalty is large, porting the mortgage to the new home can avoid it, as long as your lender's porting window fits your dates.
Book a free call to plan your Burnaby move
We'll look at your renovation plan and the home you want next, and give you one plan with the costs written out. Book a free call, or reach us by phone at 604-262-3500.
Flow Mortgage Co. arranges mortgages through BRX Mortgage Inc., licensed with the BC Financial Services Authority.
Frequently asked questions
How long can a bridge loan stay open?
Most lenders cap it at a few months, often 90 to 120 days, and want a firm sale before it starts. If your sale closes later than that, ask for a later possession date on the purchase or an earlier one on the sale.
Should I get pre-approved before I list?
Yes, because it tells you what you can buy with the equity left after the sale. A mortgage pre-approval in Burnaby from us counts the bridge, the penalty and the tax before you shop.