Mortgage Refinance in Vernon, BC
A mortgage refinance in Vernon replaces your current mortgage with a larger one, so you can use the equity in your home. If you own in Okanagan Landing, Middleton Mountain or East Hill, that equity can pay for a suite, a renovation or clearing higher-interest debt. We work out which lender and which program fit your plan, and in most cases the lender pays us, so you pay nothing for our help.
How much can I take out when I refinance my mortgage in Vernon?
Most lenders will lend up to 80% of what your home is worth today in a refinance. On a Vernon home appraised at $500,000, that's $400,000. If you owe $300,000, you could take out up to $100,000 before legal fees and any penalty. The lender also checks that your income can carry the bigger payment, so the number you can use can come in lower than the equity on paper.
Can I refinance to build a suite in my Vernon home?
Canada Mortgage and Housing Corporation can insure a refinance up to 90% of your home's value after the suite is built, as long as the money pays for adding a self-contained suite. The home has to be worth under $2 million with up to 4 units, the amortization can run up to 30 years, and no other cash can come out in the same refinance. Tell us before you collect contractor quotes and we'll check which lenders offer the program in Vernon.
Can I refinance if I'm self-employed in Vernon?
Yes, although lenders read your income differently. Many start from the income on your last 2 years of tax returns after write-offs, which can be much lower than what your business brings in. Some lenders have programs that look at stated income or business bank statements instead, often at a higher rate. If you run a trade, a farm or a seasonal business, we check which lenders read your income the way you earn it before anything is sent. Our self-employed mortgage guide covers the paperwork.
What does it cost to break my mortgage to refinance in Vernon?
If you refinance before your term ends, your lender can charge a prepayment penalty, and there can be other fees, such as an appraisal or legal costs. If you got cash back when you took the mortgage, you may have to pay some of it back. Get the penalty figure from your lender in writing, or run your numbers in our mortgage penalty calculator, and we'll set it against what the refinance saves you.
Book a free Vernon refinance call
Book a free call or phone 604-262-3500, and bring your latest mortgage statement so we can check your equity and your penalty with you.
Flow Mortgage Co. arranges mortgages through BRX Mortgage Inc., licensed with the BC Financial Services Authority.
Frequently asked questions
What happens if I sell while I have a line of credit on the home?
The line of credit is paid off from your sale proceeds at closing, along with the mortgage, so what you walk away with drops by whatever you've drawn. If you're selling to buy again, ask us about bridge financing so the two closings fit together.
Is it cheaper to roll my debt into the mortgage?
The rate is usually lower than a credit card or car loan, but you'll repay it over 25 or 30 years, so the total interest can end up higher. Keep paying your old amounts onto the mortgage as prepayments and the debt clears on about the same schedule as before.