Bridge Financing assists clients with the sale and purchase of their residence when the purchase date of your new home closes before the closing date of your current residence, a bridge loan will provide you with short-term assistance to help you with the purchase of your new residence.
Bridge financing is a secure short term solution that assists clients when the sale and purchase of their residence closes before the closing date of your current residence.
This type of loan will help you “bridge” the gap and help you with the purchase of your new residence. Typically, bridge financing is available for between 30-90 days. It should be noted that not all lenders offer bridge financing so it is important to discuss with your mortgage broker to ensure the lender you want to use offers bridge financing loans.Bridge financing rates are highly competitive, however it’s important to consider that a nominal credit facility charge may apply.
Depending on the loan amount, you may incur an additional legal fee to register the loan on title.
To qualify for bridge financing you will need to have an accepted offer of purchase for your new property and a mortgage approval from the lender providing the bridge financing.
An alternative to bridge financing is to discuss with your Realtor when negotiating your purchase to ensure the dates line up for your sale and purchase.