Bridge Financing in Surrey, BC
Bridge financing in Surrey covers the down payment on your next home with equity from the one you're selling, for the days or weeks when your purchase closes first. You might be moving from a Newton or Whalley townhouse into a detached house in Fleetwood or South Surrey, and the sale money doesn't always arrive the day you get the new keys. We line up the bridge, the new mortgage and both closing dates before you sign, so the gap is planned and priced ahead of time.
Should we sell at our asking price first and then start looking?
Selling first gives you a firm number to work with, and most lenders want a firm, unconditional sale before they'll approve a bridge anyway. The risk is having to rent or rush if you sell before you find the next place, so ask your realtor about a longer closing on the sale, which gives you room to shop. If you'd prefer to buy first, we can show you how much bridge you'd need at your asking price and at a lower price, so a slow sale doesn't catch you short. A mortgage pre-approval in Surrey sets that budget in writing.
How do we time the sale and purchase closings?
The easiest setup has your sale closing a few days before your purchase, or on the same day. When the purchase closes first, the bridge pays your new down payment and is repaid from the sale proceeds when that deal closes. Most lenders cap the bridge at a few months, often 90 to 120 days, so keep the gap inside that window. Your lawyer or notary handles both files, so give them both contracts early and ask them to confirm the dates in writing.
What does a bridge loan cost?
Expect the bridge to carry a higher rate than your mortgage, and some lenders add a setup fee on top. Because it's open for weeks, the total cost is usually small next to the price of the move, and you should still see it as a dollar figure before you firm up. The Surrey home you're buying also carries property transfer tax, which BC charges at 1% on the first $200,000 and 2% on the part up to $2 million, payable from your cash at closing. We put the bridge cost, the tax and your penalty on one sheet.
Book a free call about bridge financing in Surrey
Bring your listing price and the home you're eyeing, and we'll show you the bridge amount and its cost before you sign. Book a free call or call us at 604-262-3500.
Flow Mortgage Co. arranges mortgages through BRX Mortgage Inc., licensed with the BC Financial Services Authority.
Frequently asked questions
If we port and then have to break it, what fees are we looking at?
A ported mortgage that you later break is charged a prepayment penalty based on the rate, balance and time left at that point. Ask how your lender calculates it before you port, and get the answer in writing.
Our renewal is close. Does that change the plan?
It can, because moving near your maturity date can keep the penalty small, and our mortgage renewal in Surrey page explains how a short renewal term can help if you plan to sell soon.