Bridge Mortgage Loans in Canada: Key Points
Purpose: Provides temporary funds to use your current home’s equity as a down payment on a new property before your existing home is sold.
Term Length: Typically 6-12 months, allowing time to sell your current home and repay the loan.
Qualification: Requires a firm sale agreement on your current home and approval for a new mortgage.
Use Case: Ideal for making firm offers in competitive markets before selling your existing home.
Lender Options: Banks offer 30-45 day terms; private lenders offer up to 12 months or more, focusing on home equity rather than income or credit.
Costs: Higher interest rates than conventional mortgages due to carrying two property loans temporarily.
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