Fast & Convenient Bridge Loan Mortgages for buying & selling
Short term bridge loans to help you move your family on your terms
30 days to 6 months Temporary Mortgage Financing
Down payment, Deposit and Closing Assistance
Open Terms with low upfront costs
Quick Flexible Approvals for upto $1.5M
Discover the best mortgage rates and lowest mortgage rates in Canada at RateShop. Compare Canada mortgage lending rates from top lenders to secure your ideal home loan deal today.
Bridge Loans in Canada: Your Short-Term Solution for Seamless Real Estate Transactions
Quick, Flexible Financing to Bridge the Gap Between Buying and Selling
What is a Bridge Loan? Your Short-Term Real Estate Lifeline
A bridge loan is a short-term financing solution designed to "bridge the gap" between buying a new property and selling your current one. It provides immediate cash flow, allowing you to secure your dream home without waiting for your existing property to sell.
When to Use a Bridge Loan: 5 Scenarios Where It Shines
Buying Before Selling
: Secure a new home without waiting for your current one to sell.
Competitive Markets
: Act fast in hot real estate markets like Ontario or BC.
Auctions
: Secure funds quickly for property auctions.
Renovations
: Finance upgrades to increase your home’s resale value.
Investment Properties
: Quickly secure income-generating real estate.
The Benefits of Bridge Loans: Speed, Flexibility, and Peace of Mind
Fast Approval: Get funds in as little as a few weeks.
Flexible Terms: Tailored to your buying and selling timeline.
No Rush to Sell: Avoid settling for a low offer on your current home.
Competitive Rates: Access Canada mortgage lending rates designed for short-term needs.
How to Qualify for a Bridge Loan: What Lenders Look For
To qualify, you’ll typically need:
A strong .credit score (650+).
Sufficient equity in your current property (20% or more).
Proof of income and a solid repayment plan.
A clear timeline for selling your existing home
5 Year - Fixed Term from
3.99%
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Everyone's rate is unique.What's yours?
It is our job to get your lowest possible rate. Your rate qualification depends on certain factors, such as credit score and home equity as per regulations.
*Advertised rates may not be offered by this lender. Mortgage lender offers are aggregated by RateShop & its Brokerage Network subject to change without notice. Speak with our mortgage broker about APR and qualification requirements.
Bridge Loan Costs: Interest Rates, Fees, and What to Expect
Interest Rates
: Typically higher than traditional mortgages due to the short-term nature.
Fees
: Includes origination fees, appraisal fees, and closing costs.
Repayment
: Usually 6-12 months, with the loan repaid once your current property sells.
Bridge Loans vs. Home Equity Loans: Which is Right for You?
Feature Bridge Loan Home Equity Loan
Term Short-term (6-12 months) Long-term (5-30 years)
Purpose Temporary financing for real estate Access equity for any purpose
Interest Rates Higher Lower
Best For Buying before selling Renovations, debt consolidation
How to Apply for a Bridge Loan: A Step-by-Step Guide
Find a Lender
: Work with a mortgage broker or lender specializing in bridge loans.
Prepare Documents
: Gather proof of income, property details, and a repayment plan.
Get an Appraisal
: Ensure your current property meets lender requirements.
Submit Your Application
: Provide all required documents and wait for approval.
Risks of Bridge Loans: What You Need to Know Before You Commit
Higher Costs
: Interest rates and fees can add up quickly.
Selling Pressure
: If your current home doesn’t sell on time, you may face financial strain.
Dual Payments
: Be prepared to handle two mortgage payments temporarily.
FAQs About Bridge Loans
How long does it take to get a bridge loan?
Approval can take as little as a few weeks, depending on the lender.
Can I use a bridge loan for investment properties?
Yes, bridge loans can be used for both primary residences and investment properties.
What happens if I can’t sell my current home?
You may need to extend the loan term or explore other financing options, which could increase costs.
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Local: 416-827-2626
Toll: 800-725-9946
RateShop Inc. is a Mortgage Brokerage offering lowest mortgage rates to Canadians. We are provincially licensed in the following provinces: Mortgage Brokerage Ontario FSRA #12733, British Columbia BCFSA #MB600776, Alberta RECA #00523056P, Saskatchewan FCAA #00511126, PEI #160622, New Brunswick FCNB #88426, Newfoundland/Labrador. Our Quebec Mortgage Transactions are serviced by Orbis Mortgage Group AMF# 181136.
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