Bridge Loans – What You Need to Know Before You Leap

Timing in real estate can be tricky.

You find your dream home—but your current place hasn’t sold yet. Do you risk losing it, or do you find a way to make it work?

Enter the bridge loan.

This short-term financing tool is designed to “bridge” the gap between the purchase of a new home and the sale of your current one. And while it’s not the right solution for every scenario, it can be the key to making your transition seamless—without the stress.

Here’s what you need to know before you leap.

🏡 What Is a Bridge Loan?

A bridge loan is a temporary loan that lets you access the equity in your current home before it officially sells. This allows you to use that equity toward the down payment on a new home before your sale closes.

• Most bridge loans are short-term (usually 30 to 90 days)

• Interest rates tend to be slightly higher than traditional mortgages

• They are paid back when your existing home sells

Bridge loans are typically offered only if you have a firm sale in place on your current home, with a closing date scheduled.

⚡ Who Is a Bridge Loan For?

Bridge financing may be ideal for:

• Homeowners who found their next property before selling

• Buyers who need access to their equity fast

• Families looking to avoid moving twice or renting temporarily

If timing your two closings feels like an impossible Tetris game, this could be your solution.

🧹 What to Consider Before Using One

Bridge loans come with benefits—but they’re not for everyone. Here’s what I guide my clients through:

• Firm Sale Required: Most lenders won’t approve a bridge loan without a signed purchase agreement for your current home.

• Interest Costs: Rates can range from 6–10% (plus administrative fees), depending on the lender.

• Loan Limits: You can usually borrow only up to the amount of equity available in your home.

And keep in mind: bridge loans are designed to be short and sweet. They’re a tool to help you over a brief gap—not a long-term financing solution.

🌐 Real Talk: What’s Happening in 2025?

With interest rates in Canada beginning to ease slightly and inventory in some markets slowly rising, we're seeing:

• More clients feeling ready to move

• Homes taking slightly longer to sell in certain regions

• A rise in bridge loan inquiries

My role is to help you assess not just if you can bridge, but if it’s the smartest move for your financial situation and market timing.

👀 What Are the Alternatives?

Bridge financing isn’t the only option. Depending on your situation, you might also consider:

• Extended closing dates to give you more time

• Rent-back agreements with your buyers

• Temporary lines of credit for more flexibility

Every client’s situation is unique—and that’s why it’s key to talk through your options before making any big moves.

✨ Final Thoughts from Edith

Bridge loans can offer peace of mind and a path forward in what can otherwise be a stressful real estate moment.

I’ve helped clients navigate this exact scenario with confidence, and I’d be honoured to help you too.

Let’s chat about your home buying journey and whether a bridge loan fits into your strategy.

📞 Book a free consultation

📥 Or email me directly at hello@edithparinas.com

BONUS: Free Resources to Help You Take the First Step

✨ First-Time Home Buyer’s Checklist

✨ Mortgage Readiness: 10 Steps to Get You Into Your Dream Home

✨ Refinancing Guide — because sometimes that’s the right move, too

LET'S TALK MORTGAGES

– Edith Parinas

'The Mortgage Broker ~ The Yogi ~ The Blogger'

Hello@EdithParinas.com