BRIDGE FINANCING MORTGAGES
Bridge financing is a form of temporary financing which helps homeowners through a shot period when the funds they require to purchase a home remain locked in the equity of a home they already own. In cases where homeowners intend to use funds from the sale of home towards the purchase of a new home and the purchase closing date of the home they are buying comes before the closing date of the home they are selling; the homeowner will need access to temporary funds to cover (or bridge) the timeline gap between the two transactions. Thus, it is named as bridge financing since it is like a bridge that connects a homeowner to financing through short-term borrowings.
What is Bridge Financing in short?
Bridge financing is short-term financing aimed to provide funds to homeowners until they can access funds from the sale of their home.
Given the added risk attached to a short-term loan, bridge financing loans are normally at higher interest rates than longer term mortgages.
A bridge loan is normally paid off in its entirety upon the sale of the equity holding property has been finalized.
Key Documents a person requires to qualify for bridge financing include a copy of the purchase agreement (of the new home) and the copy of the sale agreement of the current home.
Bridge financing is an important and very useful tool for Canadian homeowners as they move between homes.
Have questions? We are happy to provide discuss and provide services for your bridge financing in Toronto, Milton, Mississauga, Oakville, Guelph, Georgetown, Brampton, Streetsville, Etobicoke , Burlington, Waterdown and Hamliton