Living Kelowna Podcast: Downsizing Options, Consider a Bridge Loan

In this episode, Brandon, a Kelowna area Realtor and certified senior real estate specialist with eXp Realty, addresses the common concern of downsizing homeowners: the financial transition from their current property to the next. Many individuals in the Okanagan find themselves with significant equity in their homes but worry about the practicalities of financing a downsizing move, especially if they are retired. Brandon introduces a valuable option—the bridge loan—explaining its benefits, costs, and the straightforward process it offers to ease the downsizing journey.

Highlights:

1. Financial Concerns of Downsizing: Many homeowners in the Okanagan have substantial equity in their current homes but worry about financing the transition to a new property.
2. Traditional Mortgage Challenges: Retirees on fixed incomes may face challenges in securing a traditional mortgage for a new home due to down payment and income constraints.
3. Introduction to Bridge Loans: Brandon highlights bridge loans as an effective solution for downsizing sellers with significant equity, emphasizing the minimal upfront costs and the six-month payment deferment advantage.
4. Bridge Loan Process: The bridge loan allows sellers to purchase a new home or condo without selling their current property first, streamlining the downsizing process.
5. Easy Qualification: Unlike traditional mortgages, bridge loans focus on home equity rather than credit score or income, making it accessible for sellers with most of their assets tied up in their current home.

Key Takeaways:

1. Bridge Loans for Downsizing: Bridge loans are a valuable tool for downsizing sellers, offering a simple process with minimal upfront costs and deferred payments for six months.
2. Financial Flexibility: The loan amount is based on the equity in the current property, providing financial flexibility for the purchase of a new home or condo before selling the existing one.
3. Tips for Bridge Loans: Brandon provides practical tips on timing, loan amounts, interest rates, fees, and repayment, guiding listeners through the planning and securing process.
4. Consultation Importance: Homeowners are advised to consult with mortgage professionals or financial advisors to understand the specific details and requirements of bridge loans, as they can vary among lenders and individual circumstances.

Relevant Quotes:

1. "For several of our Sellers who are thinking about downsizing, this is their biggest concern when they first start talking with us."
2. "There is very little upfront cost for the loan, but the big advantage is that no payments are due for six months."
3. "It’s not like a typical mortgage application. The lender doesn’t care about your credit score or your income and your ability to pay. The loan is based on your home and the equity in it."
4. "It's important to consult with a mortgage professional or financial advisor to understand the specific details and requirements of bridge loans in British Columbia, as they can vary among lenders and based on individual circumstances."

Are you thinking about downsizing your home? Don’t go at it alone! Reach out to Brandon and the team to schedule your downsizing consultation today, and be sure to download a copy of our super helpful guide to downsizing your home without losing your mind. Download your Downsizing Guide now!

Listen to the Living in Kelowna Podcast with Brandon Grass on your favourite podcast platform.