Courtesy of Iryna

Deposit Lending And Bridge Financing

Vancouver Statistics

Let’s say you have a home that you’ve outgrown; it’s time to make a move to something better suited to your needs and lifestyle. You have no desire to keep two properties, so selling your existing home and mov ing into something new (to you) is the best idea. Ideally, when planning out how that looks, most people want to take possession of the new house before moving out of the old one. Not only does this make moving your stuff more manageable, but it also allows you to make the new home a little more “you” by painting or completing some minor renovations before moving in. But what if you need the money from the sale of your existing home to come up with the downpayment for your next home? This situation is where bridge financing comes in. Bridge financing allows you to bridge the financial gap between the firm sale of your current home and the purchase of your new home. Bridge financing allows you to access some of the equity in your existing prop erty and use it for the downpayment on the property you are buying. So now let’s also say that it’s a very competitive housing market where you’re looking to buy. Chances are you’ll want to make the best offer you can and include a significant deposit. If you don’t have immediate access to the cash in your bank account, but you do have equity in your home, a deposit loan allows you to make a very strong offer when negotiating the terms of purchasing your new home. Now, to secure bridge financing and/or a deposit loan, you must have a firm sale on your existing home. If you don’t have a firm sale on your home, you won’t get the bridge financing or deposit loan because there is no concrete way for a lender to calculate how much equity you have available. A firm sale is the key to securing bridge financing and a deposit loan. So if you’d like to know more about bridge financing, deposit loans, or anything else mortgage-related, please connect anytime! It would be a pleasure to work with you.

AVERAGE PRICES

$1,997,400 detached DOWN 3.2% year-to-year

$757,300 apartment DOWN 2.4% year-to-year

$1,106,800 townhouse DOWN 3.4% year-to-year

7.7 MONTHS OF INVENTORY 33.6% SALES TO NEW LISTING RATIO

Mortgage Rates effective: June 2, 2025

QUICK CALCULATOR PER $1,000* Fixed Rates:

CLOSED FIXED RATES 1 Year Closed ......... 4.69% * 2 Year Closed ......... 4.24% * 3 Year Closed ......... 3.99% * 4 Year Closed ......... 3.99% * 5 Year Closed ......... 3.99% * 7 Year Closed ......... 5.50% * 10 Year Closed ....... 5.79% *

VARIABLE RATES 5 Year Closed: Prime -0.75% Currently 4.20%* 3 Year Closed: Prime - 0.45% Currently 4.50%* PRIME RATE CURRENTLY 4.95%

1 year: 4.69% = $5.64 per $1000* 5 year: 4.04% = $5.28 per $1,000* 10 year: 5.79%= $6.27 per $1,000* Variable Rates: Based on 4.95% prime

*Assumes a 25 year amortization and/or specific property requirements.

Statistics reflect market activity in May 2025. Source: Greater Vancouver REALTORS ® Market values stated are of the average of Metro Vancouver and surrounding region. Individual home market values will vary and are affected by factors such as location, size, interior and exterior condition. Please call to get an up-to-date evaluation of your home.

5 year closed: 4.20%* = $5.37 per $1,000 3 year closed: 4.45%* = $5.51 per $1,000 Home Equity line of credit: P+.25% = 5.20%

Sutton Group - Seafair Realty 604-763-3669 irynas@sutton.com www.IRYNAS.com IRYNA If you are looking to buy, sell or stay put, give me a call to chat.

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