Bridge Loans
If you're selling your current home and need to buy a new one, then consider taking out a bridge loan.
The purpose of a bridge loan is to help homeowners bridge the gap between the time it takes to sell your home until you buy your new home. Bridge loans use the equity in the home that you are selling as a down payment for the home that you would like buy. While waiting for your home to be sold, a bridge loan will provide the funds to purchase the new home.
Bridge loans are usually acquired for no more than 6 months but they can also range anywhere from 3-12 months in length and sometimes even longer. Once a sale agreement is in place for your current home a bridge loan will be available to you.
Bridge loans come in handy in hot real estate markets where quick decisions need to made to purchase your new home to avoid getting outbid from other buyers. When you finally sell your home, you can pay off your bridge loan from the proceeds of the sale of your old home.
Reasons you might need a Bridge loan
A bridge loan can help you get through tough situations and provide you with peace of mind when chaos and uncertainty are about to strike, however there are also a few things to consider before taking out a bridge loan.
Interest rates are higher than regular mortgage loans
Terms, fees, and conditions are usually not in the favour of the borrower
There is an associated risk involved with bridge loans, such as higher interest rates and the fact that there are no guarantees that the property you are putting up for sale will actually sell during the term of the bridge loan.
If you're denied for any reason, don't hesitate to reach out - we'll work with you and come up with the right plan in 48 hours!
The purpose of a bridge loan is to help homeowners bridge the gap between the time it takes to sell your home until you buy your new home. Bridge loans use the equity in the home that you are selling as a down payment for the home that you would like buy. While waiting for your home to be sold, a bridge loan will provide the funds to purchase the new home.
Bridge loans are usually acquired for no more than 6 months but they can also range anywhere from 3-12 months in length and sometimes even longer. Once a sale agreement is in place for your current home a bridge loan will be available to you.
Bridge loans come in handy in hot real estate markets where quick decisions need to made to purchase your new home to avoid getting outbid from other buyers. When you finally sell your home, you can pay off your bridge loan from the proceeds of the sale of your old home.
Reasons you might need a Bridge loan
- A bridge loan will allow you to buy a new home before your old home is sold
- A bride loan will allow you to use the equity in your current home as a down payment for your new home
- A bridge loan will provide extra funds in the case of an upgrade or renovation is required for the newly acquired property
- A bridge loan will provide extra time and flexibility when selling your current home
A bridge loan can help you get through tough situations and provide you with peace of mind when chaos and uncertainty are about to strike, however there are also a few things to consider before taking out a bridge loan.
Interest rates are higher than regular mortgage loans
Terms, fees, and conditions are usually not in the favour of the borrower
There is an associated risk involved with bridge loans, such as higher interest rates and the fact that there are no guarantees that the property you are putting up for sale will actually sell during the term of the bridge loan.
If you're denied for any reason, don't hesitate to reach out - we'll work with you and come up with the right plan in 48 hours!