Bridge Financing in Richmond, BC
Bridge financing in Richmond is a short loan that pays the down payment on your new home from the equity in your current one while you wait for the sale to close. It fits a Richmond move such as selling a townhouse in City Centre or Brighouse to buy a detached home in Broadmoor or Steveston, with possession dates set weeks apart. We work out whether you need a bridge at all, whether porting your mortgage saves you money and how your 2 closings fit together.
Should we be doing a port and blend?
A port and blend can make sense when your current rate is lower than what lenders are offering now and the new home needs a bigger mortgage. Your existing balance keeps its rate, the extra money comes in at current pricing, and the lender mixes them into one payment. Some lenders blend the term as well, so ask how long the new term will run before you agree. We compare the blend with paying your mortgage out and starting fresh, penalty included, so you can see which one costs less. If your term is close to ending anyway, our mortgage renewal in Richmond page explains why timing the move to your maturity date can avoid a penalty.
If we port and then had to break it, what fees are we looking at?
Once a mortgage is ported, a later break is priced like any other early payout, based on your rate, your balance and the time left in the term. On a fixed rate, some lenders use a formula that can make that penalty far larger than a few months of interest. If there's any chance you'll move again or refinance within a couple of years, tell us now so we can weigh that risk before you port.
How do we line up our sale and purchase dates?
Ideally your sale closes first or on the same day, so the proceeds go straight into the purchase. If the purchase closes first, the bridge fills the gap, and most lenders want a firm, unconditional sale before they'll set it up. The bridge itself is usually capped at a few months, often 90 to 120 days. Your notary or lawyer moves money between both files, so get both contracts to them as soon as subjects come off.
Book a free call about your Richmond sale and purchase
Send us your current mortgage statement and the dates you're working with, and we'll compare porting, blending and bridging in dollars. Book a free call or call 604-262-3500.
Flow Mortgage Co. arranges mortgages through BRX Mortgage Inc., licensed with the BC Financial Services Authority.
Frequently asked questions
Do we pay property transfer tax again on the new Richmond home?
Yes, BC charges it on each purchase at 1% on the first $200,000, 2% on the part up to $2 million and 3% above that. It's due at closing from your own funds, so set the cash aside before you firm up.
Can we get pre-approved with a bridge built in?
A mortgage pre-approval in Richmond from us can include it, since it shows the lender your expected sale proceeds and tells you how much home the move can buy.