Bridge Financing Ontario
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.
Bridge Financing Calculator
Current Home Sale Price: The price you have sold your home for.
Current Mortgage Balance Remaining: The current balances of ALL mortgages on the property. These would need to be paid in full at the closing of your sale.
Legal Fees: The estimated legal fees for this type of transcation are between $1000 - $2000 + HST and Disbursements
Mortgage Penalty: If selling your house breaks your mortgage contract, you may be obligated to pay a mortgage penalty, which will be deducted from your maximum eligible amount for bridge financing.
Real Estate Commission: In Ontario, the typical total commission for both Realtors is typically around 4-5%.
The Benefits of Bridge Financing with Burke Financial
Financing bridge loans for real estate markets are becoming increasingly popular in Ontario. Our clients are seeing the potential and jumping on the opportunity to acquire the equity they need to further their investments.Bridge loan lenders act as a gateway between homeowners and their future investments. When traditional lenders offer only obstacles and extended processing times, a private lender provides a new and convenient way to access your earned equity.
When homeowners have been turned away from banks due to low credit or incurred debts, they can come to Burke Financial. We believe every household is entitled to equity in their home, and we work tirelessly to find the best mortgage bridge financing rates on the market.
There are considerable benefits that can come with obtaining a residential or commercial bridge loan for your mortgage.
Fast Access to Equity
When you find the next property you want to purchase, in many cases you will need to act fast, especially in a competitive real estate market. We can help you get access to the equity in your old home , fast, and get the cash you need for your new downpayment!
Pay Less For Your New Home
By having the cash available now for your purchase, you are able to buy your new property now and not potentially pay a high price later. For example, if you were not able to buy your new house due to lack of down payment, not only might you miss out on your dream house, you might also pay more for that house as prices continue to rise. In most situations, that alone offsets all any fees or costs associated with the financing.
Maximum Cash Out
If your goal is to maximize the downpayment on your new home, you will want to get approved for the highest loan to value ratio possible. While most lenders will only approve up to 80% Loan-to-Value (LTV), we have Bridge Financing lenders who will approve up to 85%, even in 90% loan to value in some situations. For a $1,000,000 home, that could be an extra $50,000 or $100,000 for your new downpayment!
Flexible Term Length
In many cases, you will only need Bridge Financing for a short term, so a standard mortgage isn’t the best way to get the money you need for your down payment. We can structure your financing to the most favorable term length for you to avoid additional costs.
Flexible Payment Structure
Selling your old home and buying your new home can come with many costs that can temporarily affect cash flow until you are able to access the equity from your previous sale. We will work with you to have the payments structured to match what they can afford. In many cases, we can even prepay the entire mortgage upfront, giving you no monthly payments during the term and they can be collected when you sell your old home!
Flexible Repayment Terms
Having flexible repayment terms is great because it allows you to have the terms structured so that they are the most favourable for you. For example, it might be best to have a term that is fully open to repayment at any time without penalty. Or you might need a term that exactly matches the closing of your old home.
Why Choose Burke Financial
Burke Financial works with Canada’s largest network of mortgage broker partners, which gives us access to the highest quality resources and the best rates available across Canada. We help our clients understand the process of bridge financing in Ontario to ensure they have all of the information they need to make sound financial decisions.
We are invested in our clients’ needs, questions, and concerns. As a premier mortgage brokerage specializing in bridge financing in Ontario, our goal is to combine our extensive experience with a personalized level of care. Our priority is our client’s interests above and beyond everything else.
If you’re planning to buy a new home and need access to funds as you await the sale of your current home, let our team of experts set you up with a competitive bridge loan. We’ll tap into our extensive network of banks, credit unions, and private lenders to find the best mortgage and bridge loan rates.
Get in touch with Burke Financial today to learn about your mortgage-based bridge loan options.
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Communities We Serve
We provide service throughout all of Ontario with a focus on the following cities: