What lenders need to see
Bridge financing requires a firm, unconditional sale on the existing property. If your sale still has a financing or inspection condition, most lenders will not bridge it.
What it costs
Expect an interest rate above prime plus a modest administration fee, charged only for the days you use it. On a short overlap the total is usually a few hundred to a couple thousand dollars.
- Interest charged daily on the bridged amount
- A one-time setup or administration fee
- Legal fees to register the interim charge
- Most lenders bridge up to a limited number of days
When bridging is not available
If the sale is not firm or the timing gap runs long, the alternatives are a private interim loan, a home equity line arranged in advance, or negotiating the closing dates closer together.
Set it up early
Tell your broker and lawyer about the overlap as soon as offers are firm. Bridge approvals are quick but they still need documents, and the lawyer has to register the interim security before funding.
Frequently asked questions
- How long can a bridge last?
- Most lenders bridge for a short window measured in weeks. Longer gaps usually move to a private lender.
- Do I need a firm sale?
- For standard bank bridging, yes. Private options exist without one, at a higher cost.
- Is the down payment covered?
- Bridging covers the equity portion coming from your sale, not amounts you never had.
Talk to a Toronto private mortgage specialist
We arrange equity-based financing across Toronto and the GTA, whether you need a first position from a private lender or a second mortgage behind the bank you already have.