Bridge Financing 

Our guide to bridging the gap between your new purchase and existing home sales date

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Don't let differing closing dates get in your way.  

Trying to align the purchase of your new home and the sale of your existing home can be a daunting task. With the multiple parties, each with their unique needs and preferences, it's easier to separate these. 

Fortunately, the equity in your home isn't stuck until the sale date. Bridge financing allows you to use this for your down payment and move into your new home ahead of time. 

You'll also be glad to hear that if your new home requires any repairs or preparation for the move, bridge financing gives you the option to start completing this work. All while living in your existing home.

Check out our guide on bridge financing to learn more about how you can remove the stress of moving out and in on the same day. 

Bridge Financing Guide

  • What is bridge financing?

    Bridge financing is borrowing or lending of the down payment on your new home purchase on a closing date that is before the sale of your existing property, thus "bridging" the gap of the sale dates. 

  • How do I qualify for bridge financing?

    Qualifying for bridge financing is automatic when approved for your first mortgage, conditional upon having a firm sale agreement on your existing home, i.e. lenders cannot provide bridge financing without knowing the exact repayment date outlined in a sale agreement and without knowing the sale price verifying equity is substantial enough to repay the bridge financing from sale proceeds. 

  • How much does it cost?

    Bridge financing is comprised of 3 costs: 


    1) Bridge financing processing and application fee 

    The lender charges this and not by us as your broker. The fee ranges from $300-600. The variance is if only bridging above $150,000. 


    2) Interest charge based on the amount and duration of the total bridge loan

    Interest is based on prime plus a premium, prime at present is 3.95%, and the premium ranges from an addition 2-5%. For example, $100,000 downpayment at prime, plus 2.% (which is 6.54%), is then $16.67 per day of the bridge required.


    3) Your solicitor or lawyer fee for registering and discharging of the bridge loan against your existing home title

    This provides security for the lender, ensuring that they will be repaid. This cost is usually $300. 

  • What is the longest time period I can bridge for?

    Most lenders have an underwriting of 30-60 days. However, exceptions can be made for 120 days or longer, depending on the overall strength of your application.

  • How do I get the money from the bridge and repay it?

    The logistics/transfer of funds is handled between your broker, your solicitor and the funding department at your mortgage lender. This means you won't have to obtain the funds or worry about how to repay. These are all executed by your real estate financing team. 

  • Do all lenders provide bridge financing?

    Most, but not all, lenders provide bridge financing support. Alternative or B lenders are unable to facilitate bridge financing at this time. Fortunately, we can facilitate in-house bridge financing solutions for our clients. 

Ready to get started?

Our team of all licensed experts are available to help you bridge the gap between closing dates. .