Mortgage Refinance in Vancouver, BC
A mortgage refinance in Vancouver lets you borrow against the equity in your home by replacing your current mortgage with a larger one. If you own in Yaletown or Mount Pleasant, that equity can pay for a renovation or a loan to family, and we start by showing you how much is available and what it does to your monthly payment. On a standard refinance the lender pays us in most cases, so our help costs you nothing.
How much can I take out of my home?
You can usually borrow up to 80% of your home's value in a refinance, and that limit includes the mortgage you already owe. Take 80% of the appraised value, subtract your current balance, and the difference is roughly the most you can take out. Mortgage insurance isn't available on a regular refinance, so most lenders won't go past that 80% mark. You'll also qualify again at the stress test rate, the greater of your contract rate plus 2% or 5.25%. Have recent pay stubs or tax returns ready.
How is a line of credit different from a mortgage?
A home equity line of credit lets you draw money as you need it and pay interest on what you've used. The line of credit part is capped at 65% of your home's value, and anything from 65% up to 80% has to be a regular mortgage you pay down. Most lines only ask for interest each month, so the balance won't shrink until you pay more than that minimum. A Kerrisdale kitchen built in stages suits a line of credit, and we'd set a monthly paydown amount with you.
If I refinance to 30 years, does my interest start over?
A refinance starts a new payment schedule, so for the first few years most of each payment goes to interest again. A longer amortization lowers the payment and spreads interest over more years. The total interest goes up unless you prepay, which most lenders allow each year within limits. On a $500,000 mortgage over 30 years, each 1 percentage point on your rate changes the monthly payment by about $283 to $298, so we compare offers in dollars.
Book a free call about your refinance
Book a free call or phone 604-262-3500. We'll come back with what you can take out, the new payment and the penalty to break your current term. Clients rate us 4.9 stars across more than 400 Google reviews.
Flow Mortgage Co. arranges mortgages through BRX Mortgage Inc., licensed with the BC Financial Services Authority.
Frequently asked questions
Do I have to move my mortgage to Flow to refinance?
You don't, and if your current lender's offer is better, we'll tell you to keep it and show you why. Most lenders charge a penalty to break a term early, so we ask your lender for that figure in writing first. If your term ends soon, lining the refinance up with your mortgage renewal in Vancouver can avoid that penalty.
What happens to the line of credit if I sell?
The line of credit and the mortgage both get paid out of the sale at closing, so you keep the sale price less both balances and your selling costs. If you're selling one home to buy another, read our page on bridge financing in Vancouver before you list.