Bridge financing, also known as a bridge loan, refers to temporary loaned funds secured by your existing home that, quite literally, bridges the gap between a new home’s sales price and the home buyer’s new mortgage. This type of financing will typically occur in the event the buyer’s existing home hasn’t yet sold before closing. The equity you acquire from a bridge financing acts as a stepping stone to the next stage in your homeownership journey.
Bridge loans are a short-term solution that typically ranges from three-to-six months in length, although they can extend up to 12 months or longer. To be eligible for a mortgage using a bridge loan, a firm sale agreement must be in place on your existing home. Homeowners most commonly consider this financing method in hot real estate markets like the GTA, where bidding wars are the norm, and you need to make a quick decision to snag your dream home without worrying if your existing house has sold yet. When you sell, you can use the proceeds to pay off the loan and any accrued interest.
Burke Financial specializes in residential and real estate bridge financing and helping Canadians reach their full financial potential. Every homeowner’s experience is unique, which is why we treat every client with the utmost care. We offer a personalized approach to bridge financing and work closely with our broad network of bridge loan lenders to provide our clients with a high level of service.
At Burke Financial, we help create the best bridge financing solutions for homeowners across Ontario.