Saving for a down payment? Moving? Closing dates don’t match up? Need money for other expenses? Here’s some information on saving for a down payment, moving, bridge financing and taking out equity.

Down payment options

When you are buying a home, saving up for the down payment may seem like a big challenge; however, it may be easier than you think! There are many resources you may be able to use in order to achieve your down payment sooner.

There are two types of down payment resources: traditional and non-traditional. In most cases¹ we will ask for a minimum down payment of 5% of your mortgage amount from traditional resources. Anything over 5% may come from non-traditional resources.

  • Traditional & non-traditional down payments

    Traditional down payments

    • You may use your savings (cash) or funds from the sale of a vehicle or other registered asset.
    • Equity from an existing secured property.
    • You may be eligible to withdraw up to $25,000 tax free from your RRSP to use as a down payment under the terms of the Canada Revenue Agency’s Home Buyer Plan (HBP). Your spouse or common-law partner may withdraw an additional $25,000 from a spousal or common-law RRSP. To be eligible for this plan, you or your spouse cannot have owned any property in the last 5 years.
    • Your relatives may be able to assist. Immediate family members may fund a down payment as a gift. However, the gift must be non-repayable. The funds should be in your account 15 days prior to the mortgage closing date.
    • You may choose to use the equity from the sale of a previous property.

    Non-traditional down payments

    • Builder incentives: The total value of all incentives you receive will be subtracted from the purchase price of the property. A down payment of at least 5% is still required for the purchase.

Moving

Take your mortgage with you. You might not realize that your mortgage can move with you to your new home and there’s no heavy lifting! Your Bridgewater Bank mortgage is portable2 or assumable2.

  • Portable & assumable mortgages

    Portable

    Portable means you can transfer your current mortgage to your new home. We also offer solutions in the event you need more or less money for your home purchase.

    For example, if your new home’s value is lower than the value of your current mortgage, you can take advantage of the 20/20 prepayment privilege with no penalty. Any prepayment beyond 20% is subject to prepayment charges as described in the terms and conditions of your mortgage.

    If your new home’s value is higher than the value of your current mortgage, you can apply to increase your mortgage with us. The increased amount added to your mortgage will be offered at today’s mortgage rates. You will need to qualify to increase the size of your mortgage.

    Assumable

    Assumable means the buyer of your property can apply to Bridgewater Bank to take over your existing mortgage. This can be an appealing selling feature if your current mortgage offers a good rate compared to today’s market rates.

Bridge financing

Sometimes the closing date of the home you are selling may not match the closing date of the home you are buying. Bridgewater Bank offers bridge financing3, also known as interim financing, to help finance your new mortgage for up to 30 days while you wait for your current home’s sale to close.

  • More information about bridge financing

    For example, if the move in date for your new home is June 1, but your current home’s sale closing date is not until June 20, Bridgewater Bank will fund the new home mortgage in the interim as long as you have enough equity in your existing home. When your home sale closes, the proceeds of the sale can be transferred.

    Borrowers like bridge financing because it can help their home financing process go more smoothly by offering buyers extra days to move into their new home before they have to be out of their old home. Bridge financing is a short term loan.

Taking out equity

Need money for other expenses? Think refinancing. There are many reasons why you may want to access the equity in your home. A dream vacation, investment opportunities, kitchen renovations, college tuition or personal debt consolidation are all valid reasons to consider refinancing your home. Whatever your reason, Bridgewater Bank offers competitive refinancing solutions allowing you to potentially borrow up to 80% of your home’s current value.

Contact us today for further details and applicable rates and fees.

1 Actual down payment requirements vary and should be discussed in full at time of application.
2 All portability and assumability options are subject to mortgage insurance, property and borrower approval and qualification, where applicable.
3 This feature may not be available on all mortgage products.

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