Trusted mortgage services
Bridge financing between homes
Found your next home before your current one has sold and closed? A bridge loan covers the gap so your purchase can complete on time.
- 5-yr fixed
- 4.69%
- 5-yr variable
- 3.70%
Updated Oct 8 · on approved credit · Compare to bank rates
When the dates don't line up
Most people who buy and sell at the same time need the equity from their current home for the down payment on the next one. If the purchase completes first, even by a few days, that money isn't there yet. Bridge financing is a short-term loan that fills the gap: it provides your down payment on the purchase completion date and is paid back from your sale proceeds when the sale completes.
A bridge only works once your sale is firm, because the lender is lending against money you are about to receive. We arrange it alongside your new mortgage so the amounts and dates match, and so your lawyer or notary knows exactly where each dollar is coming from on both completion days.
What a lender needs to see
A firm sale
A signed contract for your current home with every subject removed. Until your buyer removes their subjects, they aren't obligated to complete, so lenders wait for a firm deal.
Enough equity
The bridge is sized from what you will net on the sale after your current mortgage, any prepayment penalty and selling costs are paid. It can't cover money the sale won't produce.
Two known dates
Bridge loans cover a short, defined gap between your purchase and sale completion dates. If the gap is long or uncertain, another option usually fits better.
How it works
How a bridge loan works
Firm up both deals
Your purchase mortgage is approved and your sale is firm, with completion dates set for both.
Arrange the bridge
We set up the bridge with your new mortgage, based on your net sale proceeds and the number of days between the two completions.
Purchase completes
The bridge provides your down payment and the new mortgage covers the rest. You get the keys to your new home.
Sale completes
Your lawyer or notary pays out your old mortgage and repays the bridge loan, with its interest and fees, from the sale proceeds.
Frequently asked questions
You have questions — we have answers!
Bridge Financing
How much does bridge financing cost?
You pay interest for the days the loan is outstanding, and lenders usually charge an administration fee as well. Because the loan is so short, a flat fee can make the effective annual cost high, so we compare it with simply moving your dates. Your lawyer or notary may also charge for the extra work.
Can I get bridge financing if my home hasn't sold yet?
Usually not, because the lender needs a firm sale to know the money is coming. If you are buying before you have sold, we look at other options, such as a home equity line of credit on your current home, carrying both mortgages for a while if you qualify for both, or, as a last resort, short-term private financing.
What if my buyer backs out?
In BC, buyers of most homes can cancel within three business days after their offer is accepted by paying 0.25% of the price, so don't treat a sale as firm until that period and all subjects have passed. After subjects are removed your buyer is obligated to complete; if they don't, talk to your lawyer about your options. Any bridge loan you have drawn still has to be repaid.
Can I avoid needing a bridge loan?
Often, yes. If your sale completes on the same day as your purchase, or a little before it, the sale money can flow straight into the purchase. That takes planning on both contracts, so it pays to talk about dates before you write or accept an offer.
Can I take my current mortgage to the new home?
Often, yes. Many mortgages can be ported, which means moving your balance, rate and remaining term to the new home, usually without a prepayment penalty. If the new home costs more, the lender blends the extra money in at today's rate, and you have to qualify for it. The time allowed between your sale and purchase varies by lender. Our port, blend or break planner compares porting with breaking your mortgage and starting fresh.
Today's rates
Our rates vs the banks'
We shop 50+ lenders, so the rate you're offered isn't limited to one bank's rate sheet. Updated Oct 8.
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Everyone's rate is different. What's yours?
Our job is to find you a competitive rate and terms that fit. Your rate qualification depends on certain factors, such as credit score and home equity, as per Canadian regulations. Get your details fast — there's no cost and no obligation.
- Current variable mortgage rate
- 3.70%
- Current prime rate
- 4.45%
| Term | Bank posted | Our rates | Action |
|---|---|---|---|
| 6 Months | 7.89% | 4.79% | Get this rate: 6 Months |
| 1 year fixed | 5.49% | 4.64% | Get this rate: 1 year fixed |
| 2 year fixed | 5.44% | 4.44% | Get this rate: 2 year fixed |
| 3 year fixed | 6.05% | 4.54% | Get this rate: 3 year fixed |
| 4 year fixed | 6.01% | 4.39% | Get this rate: 4 year fixed |
| 5 year fixed | 6.19% | 4.69% | Get this rate: 5 year fixed |
| 7 year fixed | 6.41% | 4.79% | Get this rate: 7 year fixed |
| 10 year fixed | 6.81% | 4.79% | Get this rate: 10 year fixed |
| 5 year variable | No bank rate | 3.70% | Get this rate: 5 year variable |
Bank posted rates are the big banks' posted rates published by the Bank of Canada (1, 3 and 5 years) and by Dominion Lending Centres (other terms). Some conditions may apply. Rates may vary from province to province. Rates subject to change without notice. Rates change often and depend on your down payment, credit and property; on approved credit (O.A.C.). E.&O.E.
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Contact info
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- Our location525 W 8th Ave #800, Vancouver, BC V5Z 1C6
- Phone number778-838-8005
- Email addressinfo@coastalblue.ca