Mortgage Professor
Bridge Financing in Ontario
Buying your next home before selling your current one? Bridge financing solves the timing gap — so you can buy with confidence.
Buying your next home before selling your current one is one of the most common — and most stressful — real estate situations. You've found the perfect property, but your existing home hasn't sold yet. Bridge financing solves this timing problem.
A bridge loan is a short-term loan secured against the equity in your current home, funding your new down payment until your existing home sells. Our team structures bridge loans with same-day approval in most cases, letting you make firm offers without sale conditions.
At Mortgage Professor, we work with both traditional lenders (who offer bridges alongside new purchase mortgages) and private lenders (for longer timelines or complex situations). We find the structure that gets you into your new home on your timeline.
Quick Facts
Understanding Your Options
What is a Bridge Financing?
Bridge financing is a short-term loan (typically 30-120 days) that "bridges" the gap between buying your new home and closing on the sale of your existing one. The loan is secured against your current property's equity and is automatically repaid when your sale closes.
Closed Bridge vs. Open Bridge
A closed bridge means you have a firm, unconditional sale on your existing home — you just need funds until that sale closes. An open bridge means you haven't sold yet but need to close on your purchase. Closed bridges are simpler and cheaper; open bridges are available through private lenders.
How Bridge Amounts Are Calculated
The bridge amount is typically: Equity in current home minus any holdbacks for real estate commission and adjustments. For example, if you're selling for $700,000 with $200,000 remaining mortgage, your available equity (after costs) might support a $450,000-475,000 bridge.
Bridge Financing vs. Private Mortgage
Traditional bridge financing (through your new mortgage lender) is cheapest when you have a firm sale. Private bridge loans work when you don't have a firm sale yet or need a longer bridge period — but come with higher rates and fees.
“Your home equity is a powerful financial tool. Let us help you use it wisely.”
The Process
How It Works
Timeline Assessment
We confirm closing dates on both properties and determine bridge amount needed.
Equity Confirmation
Your existing home's equity becomes bridge collateral. We calculate available funds.
Bridge Approval
Bridge approved alongside your new purchase mortgage — often same-day for closed bridges.
Sale Closes, Bridge Repays
When your existing home sells, proceeds automatically pay off the bridge loan.
Key Benefits
Why Choose This Option
Buy Confidently Without Sale Conditions
Make firm offers on your next home without waiting for your current home to sell.
Avoid Interim Housing
No need to sell first, rent temporarily, and move twice. Bridge directly from old to new.
30-120 Day Terms
Standard bridges through A lenders. Longer terms available through private lenders if needed.
Interest-Only Payments
During the bridge period, you only pay interest — no principal payments required.
Closed or Open Options
Firm sale? Get lowest rates with closed bridge. No sale yet? Open bridges available.
Same-Day Approval
For closed bridges with straightforward files, approval can happen within hours.
Eligibility
Who Qualifies
Bridge financing qualification depends primarily on your equity position in your current home and your purchase financing for the new property.
Typical Requirements
- Firm sale on existing home (closed bridge) for best rates
- Sufficient equity in current home to cover bridge amount
- Pre-approved purchase mortgage on new property
- Standard credit and income qualification
- Properties in standard Ontario markets
Not sure if you qualify? Get a free assessment.
Questions & Answers
Frequently Asked Questions
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Share a few details about your situation and our team will reach out within one business day. No obligation, no pressure — just expert advice tailored to your needs.
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