Bridge Financing in Langley, BC
Bridge financing in Langley lets you pull your down payment from the equity in your current home while the sale is still on its way to closing. Your move could be a step from a Willoughby townhouse to a house in Walnut Grove or Murrayville, or a trade of a Brookswood house for acreage near Fort Langley or Aldergrove. We set the bridge, the mortgage and the dates up front, so you know how much cash you'll need on each closing day. In most cases the lender pays us for arranging the mortgage, so you don't pay for our help.
How close together should our sale and purchase close?
Same-day closings are the simplest because your sale proceeds flow straight into the purchase, although they leave no room if one file runs late. Closing the purchase 1 or 2 days after the sale gives you that room. If the purchase has to close first, a bridge covers the gap, and most lenders cap it at a few months, often 90 to 120 days, and need a firm sale with no conditions left. Agree your dates with both realtors before you sign anything.
We'll try to sell at our number first and go from there. Does that work?
That's a sound plan when your next purchase depends on the sale price, because you'll know your real down payment before you shop. Before you list, we can run your purchase budget at your asking price and at a lower price, so you know which homes still work if offers come in under ask. A mortgage pre-approval in Langley holds a rate for up to 120 days, depending on the lender, while you sell, and our Rate Look Back guarantee re-locks you at no cost if a lower rate opens before closing.
What penalty do we pay to get out of our current mortgage?
If you pay out your mortgage before its term ends, your lender can charge a prepayment penalty, and on a fixed rate that charge can be large. When your maturity date is close, it can cost less to time the sale for the renewal date, which our mortgage renewal in Langley page covers. Otherwise, ask whether you can port the mortgage to the new home and how long the lender gives you to do it.
Book a free call about your Langley move
Tell us what you're selling, what you're buying and the dates on the table, and we'll set out the bridge and the cash you'll need. To talk it through, book a free call or phone 604-262-3500.
Flow Mortgage Co. arranges mortgages through BRX Mortgage Inc., licensed with the BC Financial Services Authority.
Frequently asked questions
Is bridge financing expensive?
It usually carries a higher rate than your mortgage, and some lenders charge a setup fee. Since it's open for weeks, the dollar cost is often modest, and we'll show you the figure before you commit.
Do we pay property transfer tax on our Langley purchase?
Yes, unless an exemption applies. BC charges 1% on the first $200,000 and 2% from there to $2 million, paid at closing, so budget it alongside your legal fees.