Explore short-term financing when your next home closes before the sale of your current one.
Identify the exact timing gap
Bridge financing can help connect a purchase closing to the later closing of an existing home sale. Start with both dates, the equity expected from the sale, and the amount required for the purchase. Availability and conditions vary by lender.
A firm sale matters
Many bridge arrangements rely on a firm sale agreement. Share the purchase and sale contracts, including any conditions, with your mortgage professional and lawyer. An unsold home may require a different financing approach rather than a standard bridge.
Compare the cost for the actual period
Ask for interest, setup charges, legal costs and any other fees in writing. A short loan can still have material fixed costs. Include the possibility of a delayed closing when discussing the arrangement.
Coordinate the repayment
Confirm who directs the sale proceeds, how the bridge is repaid and what happens if timing changes. Keep your lawyer and mortgage professional informed of amendments as soon as they occur.
Map each amount and date
List the deposit, purchase closing, sale closing and when sale proceeds become available. Ask what sale documents the lender requires, how much can be bridged and the maximum period. A proposed sale is not the same as a firm sale accepted by the lender.
Prepare for a delayed closing
Ask what happens if the sale is delayed or fails to close. Review extension availability, extra carrying costs and your fallback with the lender and lawyer. Bridge financing solves a timing gap only when its conditions can be met.
Questions to bring to your mortgage conversation
Can bridge financing replace a down payment I have not saved?
It generally addresses a timing gap in expected funds, not a guarantee of new equity. The lender determines eligible proceeds, documents and limits.
How does this apply to your plans?
No obligation. A personal conversation with Tajwar.
Further reading: RBC: Bridge financing overview
General information, not a commitment to lend. Mortgage eligibility, costs and terms depend on your circumstances and the lender.