Bridge loan and bridge financing brokers in Canada
A bridge loan covers the gap when the home you are buying closes before the home you are selling. It is short-term borrowing secured against the equity in the property you are about to sell, repaid the moment that sale completes.
The brokers listed here arrange bridge financing across Canada. It is one of the more straightforward products in the market, with one hard requirement that catches people out.
The brokers below have told us they take on bridge financing files. Narrow by city to see who works in your market, most lending decisions still turn on where the property sits.
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Are you a broker? List here freeThe firm sale requirement
Almost every mainstream lender requires a firm, unconditional sale agreement on your existing home before it will offer bridge financing. It is lending against a specific sum arriving on a specific date, and a conditional offer provides neither.
If your sale is still conditional, or the property is not yet sold, mainstream bridge financing is not available. What is available is private lending against the equity, at a considerably higher cost, which is worth knowing before you make an unconditional offer on the purchase.
What it costs
Interest is charged at a premium over prime for the days you actually use it, which on a typical gap of a week or two is a modest sum. The administration fee and legal costs are often the larger part of the total, and they do not scale down with a shorter bridge.
Ask for the total in dollars for your expected number of days, not the annual rate. On a two-week bridge the rate is nearly irrelevant next to the flat fees.
Common questions
What is bridge financing?
Short-term borrowing that covers the gap between buying a new home and receiving the proceeds from selling your existing one. It is secured against the equity in the home being sold and repaid in full when that sale closes.
Do you need a firm sale to get a bridge loan?
For mainstream lenders, yes. A firm, unconditional sale agreement on the existing property is almost always required, because the lender is advancing against a known amount arriving on a known date. Without it, only private lending is available, at a much higher cost.
How long can a bridge loan last?
Usually days to a few months. Most closing gaps are a week or two. Longer bridges are possible but move outside what mainstream lenders will write, and the pricing changes accordingly.
How much does a bridge loan cost in Canada?
Interest at a premium over prime for the days used, plus an administration fee and legal costs. On a short bridge the flat fees usually exceed the interest, so compare the total dollar cost for your expected number of days rather than the annual rate.
What happens if your sale falls through during a bridge?
The bridge still has to be repaid, and you now own two properties. This is the real risk in the product and the reason lenders insist on a firm sale. If a sale collapses, the usual outcome is refinancing into a private mortgage until the property sells.