Bridge Financing in Coquitlam, BC
Bridge financing in Coquitlam pays your next down payment from the equity in the home you're selling, so you can close on the new place before your sale money arrives. Owners in Westwood Plateau or Austin Heights who've bought a new home on Burke Mountain can be left waiting on a completion date the builder hasn't confirmed. We plan the sale, the bridge and the new mortgage around that date, so a late completion doesn't leave you carrying 2 homes longer than you planned.
How does the bridge work when our new build's completion date keeps moving?
A bridge opens once your sale is firm and your purchase has a closing date, and most lenders cap it at a few months, often 90 to 120 days. When a builder pushes completion back, ask your buyer for a flexible possession date or a clause that lets you extend, because a sale that closes too early can leave you renting for a stretch. We watch the builder's notices with you and adjust the bridge request when the date changes.
Do we pay property transfer tax on a brand-new home?
BC fully exempts a newly built home up to $1,100,000 from property transfer tax, with a partial exemption up to $1,150,000, if you qualify under the province's rules. Above that, the regular rates apply, starting at 1% on the first $200,000 and 2% on the part up to $2 million. Ask your lawyer to confirm the exemption well before completion, since the tax comes out of your cash on closing day if it doesn't apply.
What will it cost to break our mortgage when we sell?
Paying out your current mortgage to sell can trigger a prepayment penalty, and fixed-rate penalties at some lenders run much higher than variable ones. Get the payout figure in writing and compare it with porting your mortgage to the new Burke Mountain home, which most lenders allow within a set window after your sale. A long wait between your sale and the completion can run past that window, so ask your lender how many days you'd have.
Book a free call to plan your Coquitlam move
Bring your builder's contract and your listing plan, and we'll set out the bridge and the tax against your timing on one page, with each closing day's cash shown. Book a free call or phone us at 604-262-3500.
Flow Mortgage Co. arranges mortgages through BRX Mortgage Inc., licensed with the BC Financial Services Authority.
Frequently asked questions
Do we need to cash in our investments to cover the deposits and the bridge?
Usually not for the bridge, since it's secured by your sale. Builder deposits come due long before completion, so some owners use a home equity line of credit on their current home for them, which our mortgage refinance in Coquitlam page explains.
When should we get pre-approved?
Get pre-approved before you sign with the builder, and again about 120 days before completion. A mortgage pre-approval in Coquitlam shows what you'll qualify for once the sale and the bridge are counted.