Mortgage Refinance in Kelowna, BC
A mortgage refinance in Kelowna replaces your current mortgage with a larger one, and you use the difference to pay off debt, renovate or help family. If you moved here from Vancouver or Alberta and still carry a car loan or a credit card balance from the move, we start by working out whether folding that into your mortgage costs you less over the full term. We compare lenders for you, and in most cases the lender pays us, so our help costs you nothing.
How much can I borrow when I refinance?
Most lenders will let you borrow up to 80% of your home's value in a refinance, and mortgage insurance isn't available for a regular refinance, so 80% is the ceiling on most Kelowna homes. The lender takes what you still owe off that figure, and what's left is the equity you can draw. Lake-view homes in the Lower Mission and Upper Mission can be harder to appraise, so we book the appraisal early and you'll know the number before you plan around it.
Should I take a line of credit or a bigger mortgage?
A home equity line of credit lets you borrow, repay and borrow again, and you pay interest only on what you've used. Lenders cap that line at 65% of your home's value, and you'd carry anything between 65% and 80% as a regular mortgage with principal payments. Many lenders set the minimum line payment at interest only, which means the balance won't shrink unless you pay extra, so we agree on a monthly amount with you before any money is drawn.
Do I have to qualify all over again?
You do, since a refinance is a new mortgage and the lender checks your income, credit and debts again. You'll qualify at the greater of your contract rate plus 2% or 5.25%, which is the federal stress test. If you only want a better rate at renewal, a straight switch can skip that test, and our Kelowna mortgage renewal page explains how. That relief ends once you take equity out, so we price both routes for you side by side.
Book your free Kelowna refinance call
Book a free call or phone 604-262-3500, and have your latest mortgage statement open so we can work out your available equity while we're talking.
Flow Mortgage Co. arranges mortgages through BRX Mortgage Inc., licensed with the BC Financial Services Authority.
Frequently asked questions
Will a 30-year refinance put my interest back at the start?
Interest is still charged only on what you owe, though a longer schedule lowers the payment, so more of each early payment goes to interest. Most lenders allow yearly prepayments, so you can keep the lower required payment and still pay extra in a good month.
Will the refinance affect what I can borrow for my next purchase?
It will, since the larger payment counts against your income. If you're refinancing to buy a second place in West Kelowna or Lake Country, get a Kelowna mortgage pre-approval with the new payment already in the numbers.
Can I use my equity to help my child buy in BC?
Yes, and if they're a first-time buyer they pay no property transfer tax on the first $500,000 when the home is worth $835,000 or less, with a partial exemption up to $860,000, so plan the gift around that limit.