Do you know that bridge mortgage financing can help you “bridge” the gap between purchasing a new home and selling your old one? What if you find the home of your dreams before your existing property has had time to sell? In a competitive market, you might not have the luxury of waiting. You don’t want to lose your dream home to another buyer. The solution to this problem is short-term financing. It is often referred to as bridge financing.
The funds from your upcoming sale can be used to pay off your bridge loan. When purchasing and sale dates don’t line up, our qualified experts can help. You can trust Mortgage Brokers Network; we’ve got decades of experience and we can arrange bridge financing quickly.
Bridge loans (sometimes called swing loans) make it possible to buy a property while working towards the sale of an existing one. Bridge mortgages give a home buyer a competitive edge while house-hunting in a tough market.
If you require a short-term financing solution, typically no greater than six months but possibly as short as 90 days, a bridge loan can work. Your funding could extend up to a year or longer, but is best suited for the shortest time frame possible.
If a sale agreement is in place on your existing home that will take longer to close than your new one – a bridge loan can literally help you “bridge the gap”. This provides leverage during a bidding war.
In addition to helping you come up with a down payment before unlocking the equity from the sale of your current home, bridge mortgage financing can:
Despite the fact that bridge loan interest may be a bit more costly than conventional financing, the short-term benefit can help offset any extra expense. Before you consider bridge financing you should consult with a mortgage expert to ensure you qualify.
As terms, costs and conditions can vary – it’s fortunate that we have access to many lenders and can help you shop for the right one. However, it’s also important to note that you have no guarantee that your home will sell.
The real key to a bridge loan approval is your equity. The more equity you have, the more likely that you will be able to secure the financing you need. Working with an experienced mortgage broker can make the world of difference and it’s always wise to consult one before finalizing an offer to purchase.
You will be required to sign a strict promise to pay upon completion of your new home purchase. A “letter of direction and irrevocable assignment of funds” will be a mandatory part of the legal process. You’ll be agreeing to direct your lawyer to use the net proceeds from the sale of your existing property to pay off your lender’s bridge loan.
Your bridge loan will be paid first upon the sale of your home. It’s important to note that not all lenders offer bridge mortgage loans and this is why a mortgage broker can be your best ally in this process. We have access to a trusted network of lenders and this makes has helped us become one of Canada’s leaders in bridge financing.
You should know that if you do need a bridge loan it will not have an impact on your ability to qualify for a mortgage. While our brokers are accustomed to working with challenging circumstances such as low income, no income, poor or damaged credit, bridge financing doesn’t require perfect income or credit to apply. If you do have credit or income concerns, we can help with your mortgage lending needs. Bridge mortgage financing is an “extra” perk that will help ease the purchase of your new home.
With our network and expertise at your disposal, we’ll work to keep your overall financing costs low and maximize flexibility during the buying and selling process.
If you want to eliminate the worry of lining up closing dates on the same day, we can help. Even though the cost of borrowing a bridge loan may be higher than other loans, it can still be an affordable way to achieve your goals. At the end of the day, if buy and sell dates don’t overlap, trust our mortgage brokers to help you find a solution.
Let our decades of expertise providing mortgage services to Canadians work for you. Book a free consultation with a member of our team to learn more.
Discover what 30 years of practical experience (and an extensive network of lenders) can do for you, contact us today.
|Term||Posted Rate||Our Rate||Claim This Rate|
|Home Equity Line of Credit||Prime +1%||Prime +.50%||Claim Rate|
|Fixed 1 Year||4.50%||3.09%||Claim Rate|
|Fixed 2 Year||4.65%||3.39%||Claim Rate|
|Fixed 3 Year||4.65%||3.79%||Claim Rate|
|Fixed 4 Year||4.65%||3.99%||Claim Rate|
|Fixed 5 Year||4.89%||4.14%||Claim Rate|
|Variable 5 Year||5.80%||3.2% (prime -.95%) Net Rate 2.25%||Claim Rate|
|Fixed 10 Year||5.90%||4.54%||Claim Rate|