Bridge financing covers the gap when your new home closes before your current one sells. It advances the equity that is locked in the old property so the purchase does not fall apart.
Days to monthsTypical length
Interest onlyPayment structure
Firm saleRequired to qualify
When a bridge makes sense
- Your purchase closes before your sale and you need the equity in between.
- You want to move once rather than into a rental and out again.
- You need renovation time in the new home before moving out of the old one.
- Your buyer's closing date moved and yours did not.
- You are porting a mortgage and the dates do not line up.
What to watch on a bridge
- Your sale must be firm with every condition waived. Lenders will not bridge against a listing or a conditional offer.
- Bridge loans are interest-only and usually priced at prime plus a premium, with a modest administration fee.
- Most bridges run days to a few months, so the dollar cost is small next to losing the purchase.
- Arrange the bridge as soon as your sale goes firm, not in the week of closing.
- If your sale is still conditional, ask about private options early. They cost more and take longer to arrange.
- Your lawyer handles the payout on the sale date. Give them the bridge details as soon as they are confirmed.
Documents to gather
- Firm sale agreement on your existing home with all conditions waived
- Purchase agreement on the new property
- Current mortgage statement on the home being sold
- Lawyer's contact details for both transactions
- Government photo ID
How the timing works
- 01 Confirm the sale is firmConditions waived. This is the requirement almost every bridge lender starts with.
- 02 Calculate the gapNet sale proceeds against the funds required on the purchase, and the exact number of days.
- 03 Arrange alongside the new mortgageBridge is usually arranged with the same lender funding the purchase, which keeps it simple and cheap.
- 04 Repay on the sale closingYour lawyer repays the bridge from the sale proceeds. Nothing is left for you to do.
Dates not lining up?
Start the application, or call 647-505-1096 and talk it through first.
Questions we get asked
- What does bridge financing cost?
- Typically prime plus a premium, charged only for the days you use it, plus an administration fee of a few hundred dollars. Over a two week gap the total is usually modest.
- Can I bridge if my sale is still conditional?
- Generally not with an institutional lender. They bridge against firm sales. If the sale is conditional, the alternatives are private and considerably more expensive.
- What if my sale falls through after the bridge funds?
- You would be carrying both properties and the bridge becomes due. This is the real risk, and it is why lenders insist on a firm sale. We will talk through the exposure before you commit.
- How long can a bridge run?
- Most institutional bridges run 30 to 120 days. Longer gaps usually need a different structure.