Possession dates do not always line up. You might have to close on your new home before the sale of your current home completes. A bridge loan is a short-term loan that covers that gap.
How it works
The lender advances funds for your down payment on the new home, secured against your existing property. When your sale closes, you repay the bridge loan from the proceeds.
When it can make sense
- Your sale and purchase have different closing dates
- You have a firm, unconditional sale agreement on your current home
- You want to avoid a rushed or discounted sale
What to consider
Bridge loans are short term and usually cost more than a regular mortgage because of interest and fees. Make sure the numbers still work if your sale takes longer than planned. Ask about the total cost and the repayment terms before you commit.
Talk to a Langley Mortgage Broker
Every file is different. If you would like to talk through your own situation, the team at M. Abdullah Mortgages is happy to help. Get in touch or start your application online.
This article is general information, not personal financial or legal advice. Rates, rules and lender policies change, so confirm the current details for your situation before making a decision.
