Bridge Financing in Victoria, BC
Bridge financing in Victoria lets you use the equity in the home you're selling to pay the down payment on your next one, while the sale is still waiting to close. The move might be a James Bay or Fernwood condo to a house in Oak Bay or Gonzales, or a mainland sale paired with a Victoria purchase, which puts the 2 deals on separate timelines. We set up the bridge and the new mortgage around your closing dates, so the money's in place on the day you get your keys.
How does bridge financing work if I'm selling on the mainland and buying in Victoria?
The bridge works the same wherever the sale is, since it's secured by the firm sale of your current home. Most lenders want that sale unconditional before they'll lend, and they usually cap the bridge at a few months, often 90 to 120 days. Having a lawyer or notary in each city can slow the paperwork, so give each of them both contracts as soon as subjects come off. We coordinate the funds between the 2 files so the money reaches your Victoria lawyer before closing.
Can we take our mortgage with us to the new house?
Most lenders let you port your mortgage to a new home within a set window after your sale, which keeps your rate and avoids the prepayment penalty. If the Oak Bay house needs more money than your current balance, a port and blend tops it up at a current rate and folds it into one payment. You'll qualify again for the larger amount, so we check your income and debts before you write an offer. Ask how long your lender's porting window is, because a long gap between closings can run past it.
What happens if we break our mortgage when we sell?
Breaking your mortgage to sell can cost a prepayment penalty, and on a fixed rate some lenders' formulas make it much larger than on a variable. Ask for the payout figure in writing before you list, then compare it with porting. If your renewal is less than a year away, waiting can avoid the penalty, and our mortgage renewal in Victoria page explains how early renewal works.
Book a free call about bridge financing in Victoria
Send us your sale details and the home you're watching, and we'll set out the bridge and the penalty beside the new mortgage in one plan. Book a free call, or call our office 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 pay property transfer tax on the Victoria purchase?
Yes, unless you qualify for an exemption. BC charges 1% on the first $200,000 and 2% on the part from $200,000 to $2 million, paid from your cash at closing, so set it aside when you budget for the move.
When should we get pre-approved?
Get it before you start viewing homes, because a mortgage pre-approval in Victoria from us counts your expected sale proceeds, the bridge and your penalty, so you shop at a price that works.