Mortgage term
Bridge financing
Definition
A short-term loan that bridges the gap between the purchase of a new home and the sale of your current one. Usually 30–120 days, interest-only, at prime + 2%–5%. Requires firm sale documents.
Bridge financing lets you take possession of a new home before your existing home's sale closes. Cost is typically $500–$2,000 in fees plus daily interest. Most Canadian lenders offer bridges to their own mortgage clients; standalone bridges are harder to get.