Canadian Mortgage Advisor
8-8 Strathearn Avenue
Greater Toronto Area , ON , L6T 4L9 Canada

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Helping GTA Homeowners find a mortgage that is right for them
Call Us: 1-416-930-1225

As a repeat home buyer, we often face this situation. Our existing home has been sold but we have to move before our closing date.

The most common solution to this is to get a Bridge Financing. As the name suggests – it bridges the gap between two closing dates. So, the situation looks like – our money is stuck in our existing home and we need to move into our new home before we close our existing home. The situation is bit tricky.

There are mainly two types of Bridge Loans – 1) Closed – with a fixed payoff date and 2) Open – where the exact payoff date is uncertain. Both have their own risks associated with them and may cost you differently.

The main points to note are –

  1. Lawyer fee is usually more than regular loans.
  2. You have to produce more papers to the lender.
  3. There may be a setup fee involved.
  4. Interest rates are higher.
  5. Interest rates may be payable upfront.
  6. Needs a collateral.
  7. Anticipated fund may get into trouble.

You should also look at other options like obtaining a Secured line of credit, before you opt for bridge financing.

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About Us

Sudip Adhikari.
Agent License #M10001082
Broker Mortgage Diligent -
Head Office -1305 Matheson Blvd East, Mississauga, ON L4W 1R1
FSCO #10252 O.A.C , E&OE

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