Buying a new property before your current one sells can create a timing gap. Bridge financing through a private mortgage is a common way to cover it.
What is bridge financing?
Bridge financing is a short-term loan that “bridges” the gap between buying a new property and receiving the proceeds from selling your existing one.
A common scenario
You find a property you want to buy, but your current home has not sold yet. A bridge loan gives you the funds to complete the purchase, and you repay it once your sale closes.
Why private lenders are well-suited
These situations are time-sensitive and short-term by nature, which is exactly where private lending excels — fast arrangement and flexible terms built around your timeline.
What to plan for
Bridge loans are temporary, so have a realistic timeline and a clear exit. Factor in the interest and costs for the bridge period when you plan your move.
Ready to talk?
If this sounds like your situation, start your application or contact us and we will help you understand your options across Ontario.
This article is for general information only and is not financial, legal, or investment advice. Please consult a qualified, licensed professional before making any decision.