Don't lose your new home because the dates don't line up.
Bridge financing covers the gap between purchasing your new property and receiving the proceeds from selling your existing one. When bank bridge programs fall short, private lenders can fill the difference.
Is This Right For You?
When bridge financing makes sense
- Your new home closes before your existing home sells, and you need funds for the down payment
- Your bank's bridge financing was denied or the amount offered is insufficient
- The closing dates on your sale and purchase can't be aligned due to buyer or seller constraints
- You're purchasing a non-arm's length property or one that doesn't meet bank bridge criteria
- Your existing home hasn't yet sold but you've found a property you can't afford to lose
- Construction or renovation delays have pushed your closing and you need a short extension
Typical Terms Overview
Rates shown are indicative ranges for general information only. Your actual rate will depend on property type, location, loan-to-value ratio, borrower profile, and other underwriting factors. Rates are subject to change without notice.
The Process
How bridge financing works
A bridge loan is repaid in full from your sale proceeds when that transaction closes. The process is straightforward when both transactions are documented.
Review both transactions
We review the purchase agreement, sale agreement, closing dates, and your current equity position. Bridge loans are secured against the property you are selling.
Confirm the gap amount
The bridge loan covers the gap between what you need for the purchase closing and what you'll receive from your sale. We calculate the exact amount required.
Lender approval and commitment
A private lender issues a commitment for the bridge amount, typically at a short-term rate with fees. The commitment is conditional on your sale proceeding as scheduled.
Closing and repayment
The bridge loan funds on your purchase closing. When your sale closes, the proceeds repay the bridge loan in full. The loan is typically open for early repayment.
Approval Factors
What determines bridge loan approval
Confirmed sale agreement
Most bridge lenders require a firm sale agreement (conditions waived). If your home is only listed, not sold, a bridge loan is more difficult to arrange and lenders will require significant additional equity.
Equity in the property being sold
The bridge is secured against the sale property. Sufficient net equity must remain after accounting for the existing mortgage, the bridge loan, real estate commissions, and closing costs.
Closing date gap
Bridge financing is typically structured for a 30 to 90 day gap. Longer gaps are possible but attract higher costs. The shorter the bridge period, the simpler and less expensive the arrangement.
Existing first mortgage lender
Some first mortgage lenders restrict additional charges on the property. Your broker will confirm whether a private bridge charge is permissible under your existing mortgage terms.
Common Questions
Bridge financing FAQ
Can I get bridge financing without a firm sale on my current home?
It's more difficult. Most private bridge lenders require at least a firm offer on your existing home, preferably with conditions already waived. Without a confirmed sale, the lender has no clear repayment source. In rare cases with very strong equity, an unsold property bridge can be arranged, but at higher rates and fees.
My bank offered bridge financing but it wasn't enough. Can you help?
Yes. Banks often cap bridge financing based on their own internal policies, not necessarily your actual equity position. A private lender can bridge a larger amount if your net equity supports it. We can also layer a private bridge on top of partial bank bridge financing in some cases.
What does bridge financing cost?
Private bridge rates are typically higher than conventional financing — usually 10–15% annually, plus a lender fee and broker fee. Because the bridge period is short (weeks to a few months), the total dollar cost is often less significant than it appears as an annualized rate. Your broker will show you the all-in cost for your specific scenario.
How quickly can a private bridge loan be arranged?
In urgent situations, private bridge financing can be arranged in 2–5 business days. We recommend contacting us as soon as you recognize the timing gap — don't wait until a day before closing.
What happens if my sale falls through while the bridge is in place?
This is a risk in any bridge arrangement. If your sale falls through, you still owe the bridge loan. It's important to have a plan B — usually either relisting the property quickly or refinancing the bridge into a longer-term product. Your broker will discuss this scenario with you before you proceed.
Bridge the gap. Don't let timing cost you the deal.
Tell us your closing dates and we'll tell you what's available. Most bridge inquiries get an answer within a few hours.