Bridge Financing Mortgage Guide | Abbotsford Mortgage Broker

Bridge Financing Guide

A guide to help you understand the process of getting a mortgage for a presale home. If you're ready for personalized advice, go ahead and click "get started" below.

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Bridging the financing gap between buying and selling

Buying a new home? You probably have ideal timing scenario worked out in your mind: Just as you’ve found the perfect new place, your existing home sells. You use the proceeds from your sale for the down payment on your new home, as the down payment is due shortly after the sale of your home is complete.

In reality, it rarely goes that smoothly. That’s where bridge financing is essential.

Bridge financing provides a temporary source of funds to ensure you can make a down payment on a new home before the sale of your existing home is completed. It covers the gap between when you need to pay your down payment, and when you have the proceeds from your sale. It’s a vital short-term solution that acknowledges that the timing we have worked out in our heads rarely matches reality.

We’ll help you source temporary bridge financing to cover the timing gap between buying and selling

Buying and selling is stressful enough without the added wrinkle of getting the timing perfect. With bridge financing, you don’t need to nail the timing. We’ll use the equity in your existing home toward your down payment, and can even use it to help fund repair work on your new home.

Robinson has seen it all when it comes to mortgages and timing, and we’ve helped many people throughout the Fraser Valley access bridge financing mortgages. What sounds like a stressful process is actually fairly straightforward—when you have the right team on your side.

Bridge Financing FAQ

What is bridge financing?

Bridge financing is a type of borrowing to ensure you can make a down payment on a new home before the sale of your existing home is completed. It bridges the gap between when you need to pay your down payment and when you have the proceeds from the sale of your existing home. It’s a vital short-term solution that acknowledges that the timing we have worked out in our heads doesn’t square with reality.
How do I qualify for bridge financing?

You need a firm offer to purchase your existing home. Qualifying for bridge financing is not based on your income. You qualify if you have an unconditional offer to purchase your home. Lenders want to know the repayment date noted in the agreement of sale, along with the sale price.
What are the costs of bridge financing?

The interest on bridge financing is typically higher than a regular mortgage, but the term is much shorter. You may be charged an application and processing fee of around $300, and you may have legal fees related to registering and discharge the bridge loan.
How long can I get a bridge loan for?

Most bridge financing spans 30 to 60 days, but they can be made to last longer.
How do I coordinate my down payment using the bridge loan?

All the details are managed by your mortgage broker (that’s us), lawyer and mortgage lender. We’ll guide you through the process. You won’t have to coordinate the movement of the funds.

Hear from a few of our happy customers

Val Meyer

Matt was wonderful when we were buying and selling our house. As soon as we had a place we were considering, he would crunch the numbers for us and see if it was doable or not. Hes very quick in response time and easy to communicate with. This is our second time using him and we will continue to use his services in the future. Thanks Matt!

Nico Abais

As a first-time home buyer, my first resolve was to search for information online and sure enough I find bits of information all over the place. Then we were introduced to Matt. He will answer all your questions in a timely manner and guide you with the whole process and expectations. Matt will work his way to get you the best rate!

Tash Stobbart

Robinson Mortgage were very helpful in obtaining our first mortgage. We had difficulties dealing with banks because my husband is a contractor and has multiple T4’s and his income tax is complicated but Matt and his team made it easy. I would highly recommend to anyone looking for a mortgage and in fact I have sent friends his way.

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Got questions? We’re happy to help. Reach out anytime or schedule a time that works for you. And we’ll help you get closer to your dream home.

Meet Matt

Robinson Mortgage is owned and operated by Matt Robinson, a professional mortgage broker based in British Columbia’s beautiful Fraser Valley. Matt has helped countless people in Abbotsford, Chilliwack, Mission and beyond navigate the process of finding financing for their home. Whether you’re buying your first place, consolidating your mortgage, or getting ready for a future purchase, Matt is your man with a mortgage plan.
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