You take possession of the new property before the old one settles. A bridge loan advances the down payment across the gap between the two dates.
It repays itself from the sale proceeds at the notary. One condition governs everything else: the sale must be firm, conditions lifted, or traditional lenders won’t advance anything.
Arrange my bridge loan with MathieuA bridge loan is simple in principle and demanding on dates. I first confirm the sale is firm, then establish exactly how many days separate the two closings and how much has to be advanced. That’s what determines the cost.
An overlapping purchase and sale means two lenders, potentially two notaries, and dates that have to interlock. I make the whole thing hold together: the purchase financing, the bridge covering the gap, repayment at the sale. And I plan with you for the sale falling through anyway, because a transaction can collapse even after conditions are lifted.
Conditions lifted, buyer committed. That’s the starting point without which a traditional lender won’t move.
The number of days between the two closings and the sum to advance for the purchase down payment.
Daily interest, setup fees, and legal costs, so you see the total before committing.
At the sale, the proceeds repay the bridge directly. Nothing is required from you.
Almost every lender requires the buyer’s conditions to be lifted before advancing funds. Without a concluded sale, this means private financing at a notably higher cost. It’s the constraint people most often discover too late.
Interest accrues daily on the advanced amount. Over a few days the cost stays modest; over two months it becomes a real budget item. Moving the two closing dates closer is the simplest way to cut the bill, and it’s negotiable.
For the mortgage itself, the lender pays me. The bridge loan has a direct cost: interest calculated daily on the advanced amount, at a rate above a mortgage, plus setup and legal fees. What it costs, in detail
Selling to buy means knowing what the sale will leave and when those funds become available.
Rarely from traditional lenders. Almost all require a firm sale with conditions lifted. Without a concluded sale, this usually means private financing at a notably higher cost. It is the constraint people most often discover too late.
Interest accrues daily on the advanced amount at a rate above a mortgage, on top of setup and legal fees. Over a few days the cost stays modest; over two months it becomes a real budget item.
Generally a few days to a few months depending on the lender. The longer the gap, the tighter the conditions. If your two closing dates are months apart, we look at solutions other than a bridge.
The bridge loan remains due, without its intended repayment source. That is exactly why lenders require a firm sale before advancing funds. We plan for the scenario anyway, because a transaction can collapse even after conditions are lifted.
It is temporary, but the lender verifies you can carry both properties during the overlap. The mortgage balance on the property being sold, taxes, and costs for both buildings therefore enter the analysis.
Major banks, credit unions, and specialized lenders each apply their own criteria, products, and terms. A logo does not mean that a mortgage will be offered or approved.
