Bridge the Gap: What You Need to Know About Bridge Mortgage Loans in Canada

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.