Seems the drop dead simplest solution is to get a mortgage on the new home. If construction has already started, then that seems to imply you have already given them a deposit, so why would you need a bridge loan with only 2 months remaining til completion – a "couple" means (2) to me? People generally get bridge loans at the beginning of the process so construction can get started.

On the thought of refinancing your current home and then paying it off in a few months, lenders expect that when you refinance your home, you will remain in the home for at least 12 months and would not like the thought of you selling the home after making just a few payments on the loan. The lender could suffer chargebacks for that.

Think about this. By refinancing your current home at the low rates for a primary residence, you are indirectly getting a bridge loan to buy your condo – but at a rate you would not otherwise obtain for a true bridge loan. But by telling the lender that you intend to occupy that home for the next 12 months, you would be committing mortgage fraud.

I can’t see why someone recommended against a home equity loan. I’ve had many clients get home eq loans to buy other property. Better yet, get a home equity line of credit. You’ll get a really low start rate. Then pay it off after the home is sold. Be aware there may a fee involved to close out a home eq line of credit that soon. Be sure to get all the details. But more than likely, the fee for the early close-out will be less than the closing costs on a refinance – and no fraud would be involved.

For the record, selling a home with a mortgage is par for the course. Most people who sell their homes have a mortgage outstanding.

You should seek competent tax advice on the second home and rental issue.

Good luck.

It is also an excellent idea to refinance your current home and purchase your new condo. Make sure you understand all the condo rules by getting a copy of the CCRs and by-laws of the condo prior to moving in and signing the settlement statement.

It is not as complicated as you think in selling a house with an existing mortgage as 90%-95% of all houses sold have a mortgage on them.

If there is an existing mortgage on the house you are selling, when the escrow close the mortgage is paid off by the escrow closing agent. After the closing cost have been paid you are given a check for the difference in the mortgage being paid off as well as the closing cost.

Perhaps the rent your son would pay you would cover the mortgage monthly payment. Of course there is the stigma of renting to family and friends.

I hope this has been of some benefit to you, good luck.

"FIGHT ON"