Bridge Financing in B.C.
Our guide to bridging the gap between your new purchase and existing home sales date
Bridge financing covers the added costs of carrying two properties for a short time.
Bridge financing covers the added costs of carrying two properties for a short time.
Here's what you need to know about bridge financing (also called a bridge mortgage).
Trying to align the purchase of your new home and the sale of your existing home can be a daunting task. With the multiple parties, each with their unique needs and preferences, things can get incredibly complicated and stressful.
Here at the Silverman Mortgage Group, we know the last thing you need when you're dealing with real estate is more stress. While we can't do much about picky buyers, bidding wars or rising real estate prices, we can simplify the process of financing your next home purchase with a bridge loan.
Need short-term financing between closing dates?
Need short-term financing between closing dates?
Fortunately, the equity in your home isn't stuck until the sale date. Bridge financing allows you to use this for your down payment and move into your new home ahead of time. A bridge loan can even be structured in a way that allows you to skip the monthly payments and simply pay back the entire amount once the sale of your current home is complete.
You'll also be glad to hear that if your new home requires any repairs or preparation for the move, bridge financing gives you the option to start completing this work. All while living in your existing home.
Sounds good, right?
Click here to get started. Or read our guide on bridge financing to learn more about how you can cut the stress of moving out and in on the same day.
Bridge Financing Guide
Jordan de Brouwer
"I had a great experience with them. I was a first time home buyer and didn't know much about the mortgage application experience. They made the whole process very easy and stress free and explained each step in detail. I would recommend them to anyone looking for a mortgage, especially first time home buyers."
Leah Allen
"We purchased a second property and Silverman Mortgage Group made the process so easy and quick. I especially liked the personalized video presentation which made it possible for us to clearly understand the process. At a very busy time in our lives almost everything was completed in the comfort of our home."
Reid Arkinstall
"My wife and I had a great experience working with the Silverman Mortgage Group. It took us a while to find the right home but Zach and his team worked with us throughout the entire process, ensuring we always had the most up-to-date mortgage information. We look forward to working with SMG in the future."
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Let's say you have a home that you've outgrown, it's time to make a move to something more suited for your family. You have no desire to keep two houses, so you decide that selling your existing home, and moving into something new is the best idea. Ideally, when planning out how that looks, most people want to take possession of the new house before having to move out of the old one. Not only does this make moving (your stuff) easier, it allows you to make the house a little more "you" by adding some paint, or doing some small renovations before moving in. But what if you need the money from the sale of your existing house to come up with the downpayment for your next house? This is where bridge financing comes in. Bridge financing allows you to bridge the financial gap between the firm sale of your current home, and the purchase of your new home. Bridge financing allows you to access some of the equity in your existing property to be used towards the downpayment on the property you are buying. Now, here is where people get confused, in order to secure bridge financing, you must have a firm sale on your existing house. If your house isn't sold, you won't get the bridge financing, because there is no concrete way for a lender to calculate how much equity you have available. Instead of going through all the fine details of documentation required to apply for bridge financing, or outlining scenarios that may or may not be applicable to you, if you've got questions, why don't you contact us directly! We'd love to hear from you!
It's a common held belief that if you've made your mortgage payments on time throughout the entirety of your mortgage term, that your lender is somehow obligated to renew your mortgage. This is simply not the case. The truth is, a lender is never under any obligation to renew your mortgage. The initial mortgage contract was drawn up for a defined time, when that term comes to an end, the lender has every right to call the loan.
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