Mortgage Refinance in Surrey, BC
A mortgage refinance in Surrey can turn the equity in your home into cash for a basement suite or a down payment on a rental. A detached home in Newton or Fleetwood can have room for a suite, and if you're also planning another purchase, a refinance changes what you can qualify for next. We work out both on the first call from your income and your current mortgage. In most cases the lender pays us, so you won't get an invoice from Flow for any of it.
Will a refinance affect my ability to qualify for a purchase?
It can, because the bigger mortgage payment counts against you when a lender works out what you can afford on the next property. That's why we plan the refinance and the purchase together from the start. Both loans face the stress test at the greater of your contract rate plus 2% or 5.25%. If the equity becomes your down payment on a Cloverdale or Guildford rental, budget for property transfer tax on that purchase. In BC it's 1% on the first $200,000 and 2% from $200,000 to $2 million. Get your mortgage pre-approval in Surrey before you start looking, so you shop with a written number.
Should I consolidate my debt into the mortgage?
Rolling your balances into the mortgage can cut the monthly payment, because a mortgage usually carries a lower rate than a credit card. The cost shows up over time, since a car loan with a few years left gets stretched across the whole amortization unless you pay extra. We build a prepayment plan into the refinance so the old debt is gone on about the schedule it had before, and you keep the lower interest. Most lenders allow yearly lump sums or higher payments without a penalty, within limits written into your mortgage terms.
Can I refinance to build a suite?
Canada Mortgage and Housing Corporation (CMHC) can insure a refinance up to 90% of your home's value after the suite is built, to pay for adding a self-contained suite. The home must be worth under $2 million and have up to 4 units, the amortization can run up to 30 years and no other cash can come out. Many lenders count part of the expected rent when you qualify, so bring your contractor's quote and a fair rent estimate for the suite to the call.
Book a free Surrey refinance call
Book a free call or phone 604-262-3500 with your mortgage statement and a rough list of what you want the money for. We'll show you how much is available and how it fits with your next purchase.
Flow Mortgage Co. arranges mortgages through BRX Mortgage Inc., licensed with the BC Financial Services Authority.
Frequently asked questions
Is it worth refinancing for only $25,000?
It can be if your term ends soon, since adding $25,000 at your mortgage renewal in Surrey can avoid a break penalty and cost very little. Partway through a term, the penalty can be larger than the interest you'd save. A home equity line of credit might cost less, and we'll price both for you.
Does refinancing to 30 years restart my interest?
The schedule does start fresh, so the early payments on a new 30-year amortization lean heavily toward interest. The payment drops because it's spread over more years, and prepaying later brings the end date closer again.