5 Mortgage Strategies to Help You Move into a Bigger Home Without Overstretching Your Budget
- Dennis Eng
- Apr 5
- 4 min read
Thinking about upsizing your home in Vancouver or the Fraser Valley, but worried about the financial leap? You're not alone. With home prices holding steady and inventory increasing across BC in 2025, now is an excellent time to consider a larger space. But affordability is still a key concern—especially for families where multiple generations live in one household we can help navigate the mortgage landscape despite higher interest rates or tight monthly budgets.
At Mortgages by Dennis Eng, we specialize in helping BC homeowners make strategic financial moves. Here are five smart financing strategies to help you upsize without overstretching your budget.
🏦 1. Bridge Financing: Buy First, Sell Later (Stress-Free)
One of the biggest concerns when upsizing is timing—how do you buy your new home without selling your current one first? That’s where bridge financing comes in.
Bridge loans give you access to the equity in your existing home before it sells, so you can put that toward the purchase of your new property. This helps you:
Make a strong, non-subject offer on the new home
Avoid the pressure of rushed closings
Coordinate your move without gaps or temporary housing
Bridge loans are short-term, interest-only, and paid off once your current home sells—keeping your long-term budget in check.
💰 2. Use a Home Equity Line of Credit (HELOC)
If you have significant equity built up in your home, a HELOC can be a powerful tool.
This flexible line of credit allows you to borrow against the equity in your current home—usually up to 65–80% of its appraised value. The funds can be used for:
Down payment on the new home
Renovations or moving costs
Emergency buffers during the transition
The benefit? HELOCs typically have lower interest rates than unsecured loans and only require you to pay interest on the amount used.
📝 Pro tip: Use the HELOC as a temporary strategy, then pay it off using proceeds from your home sale.
🔁 3. Refinance Your Current Mortgage to Unlock Equity
Mortgage refinancing lets you break your current mortgage early, replace it with a new one, and pull out some of the equity to use toward your new home.
This is especially useful if:
Your mortgage is nearing renewal
You qualify for a better rate or term
You want to consolidate existing debt at a lower rate
While refinancing may involve a prepayment penalty, we help our clients in BC compare the costs with the potential gains. In many cases, the added down payment power and reduced overall interest make this move well worth it.
📉 4. Consider a Longer Amortization Period (If It Helps You Sleep at Night)
While not ideal in every case, extending your amortization period (e.g., from 25 to 30 or 35 years) can lower your monthly payments—giving you the breathing room needed when transitioning to a bigger home.
This strategy can:
Keep cash flow manageable
Reduce stress in the first few years of ownership
Free up budget for home improvements or lifestyle needs
As your income grows or your budget stabilizes, you can make lump-sum payments or increase your monthly payments to pay the mortgage off faster—without penalty.
🧠 5. Use Rental Income to Boost Your Buying Power
If your home has a legal basement suite, laneway house, or income-generating rental unit, you could use that rental income to qualify for a larger mortgage.
Lenders in Canada often accept 50% to 85% of rental income when calculating your mortgage eligibility. This added income can help you:
Qualify for a more expensive home
Reduce your debt-to-income ratio
Get better financing options overall
This is especially helpful for move-up buyers in Vancouver and the Fraser Valley, where many properties include suites that generate consistent monthly rent.
Thinking of upsizing? Boost your mortgage qualification. For the move up buyer in Vancouver let’s factor in your rental potential. It could make all the difference.
Finally, Get Pre-Approved With a Realistic Budget in Mind
With the new found information, it's important that we get pre-approved.
This isn’t just a strategy—it’s a necessity.
Getting pre-approved for your next mortgage helps you:
Know your exact buying power
Shop within your means
Lock in a rate while you look
Avoid last-minute surprises
At MortgagesbyDennisEng, we don’t just give you a number—we help you set a smart, sustainable plan that aligns with your lifestyle and long-term goals.
We also explore mortgage portability (taking your current rate with you), down payment sources, and tax implications so you can move forward with confidence.
🧭 Final Thoughts: Finance First, Shop Second
Upsizing is an exciting milestone—but it doesn’t need to be financially overwhelming. With the right financing strategy, you can move into a bigger, better-fitting home without draining your savings or sacrificing peace of mind.
The key? Plan ahead, explore all your options, and work with a mortgage expert who knows the BC market inside out.
📞 Let’s Build Your Upsizing Strategy
At Mortgages by Dennis Eng, we help homeowners across Vancouver, Burnaby, Langley, and the Fraser Valley take the next step—on budget and with clarity.
🧮 Whether it’s bridge financing, a HELOC, or a refinancing option, we’ll walk you through every path.
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