REAL ESTATE FINANCING

Bridge Loans

Close the gap between selling your old home and buying your new one. Compare short-term financing solutions.

Short-term solutions (1 to 12 months)
Interest-only payments to keep costs manageable
Quick • Private • No obligation

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Capital Direct
Capital Direct Home Bridge Loan
Est. APR
11.50%
Loan Amount
$10k - $1500k
Loan Terms
1 - 12 Mo
Recommended Score
All Credit Types
Fast Approval Requires Firm Sale Agreement Fast Closing
Min Income: No strict min.
Origination Fee: 0%
Funding: 2 Days
Go to Site
Secure & No Credit Impact
Rates, Fees & Terms
Rate Type Variable
Typical APR 11.50%
Loan Amounts $10,000 - $1,500,000
Available Terms 1 to 12 months
Origination Fee 0%
Admin/Flat Fee $0
Avg. Funding Time 2 Days
Eligibility Requirements
Minimum Income No strict minimum
Credit Score Required No Minimum
Minimum Age Age of majority
Residency Status Canadian Resident
Included Features
Fast Approval Requires Firm Sale Agreement Fast Closing

Calculate Your Bridge Costs

Bridge loans are calculated daily. Enter the gap between the closing date of your new home and the sale date of your current home to see exactly what this convenience will cost.

  • Calculate interest by the exact number of days
  • Factor in standard lender setup fees
  • See the total amount due when your house sells
1. Bridge Details
$
Days
How many days between your two closing dates?
%
$
Total Cost of Bridging
$0
Interest + Fees to bridge 45 days
Bridge Loan Amount
$0
Setup Fee
$0
Accumulated Interest
+$0
Total Payout Required
$0
Secure Your Dream Home

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Bridge Loan Guide

Bridge loans in Canada, explained simply

A bridge loan is short-term financing that helps cover the gap when you are buying a new home before the sale proceeds from your current home are available. It is commonly used when the closing date on your purchase happens before the closing date on the home you are selling.

In practical terms, bridge financing can help with the down payment, closing timing, or other immediate cash-flow needs tied to the move. The main goal is not long-term borrowing. It is temporary breathing room between two real-estate transactions.

What this page helps you understand

  • When bridge financing can make sense
  • How the timing gap usually works
  • What lenders may want to see before approval
  • Which costs and risks matter most before signing
How It Works

How bridge financing usually works between two closing dates

The most common bridge-loan scenario is simple: your new home closes first, but your current home closes later. The bridge loan helps cover the temporary gap until the sale of your current home is completed and the proceeds become available.

You buy the next home

You sign the purchase for the new property and have a closing date approaching before the money from your existing home sale is in hand.

The lender covers the timing gap

The bridge loan temporarily advances funds tied to the equity or expected proceeds from your existing home sale.

The loan is repaid from sale proceeds

Once your existing home sale closes, the proceeds are typically used to repay the bridge financing and any related interest or fees.

Helpful rule of thumb: bridge financing is usually about closing-date coordination, not long-term borrowing flexibility.
Eligibility & Documents

What lenders often look for before approving bridge financing

Bridge financing is usually tied to a real estate transaction that is already moving forward. That means lenders often want more than a simple loan application. They may want to see signed transaction documents and evidence that the sale and purchase timelines are real.

Common lender expectations

  • A firm or signed agreement on the home you are selling
  • A signed purchase agreement for the home you are buying
  • Approval or financing in place for the new property
  • Enough equity or proceeds to support the temporary advance

Useful paperwork to have ready

  • Sale agreement for the current home
  • Purchase agreement for the new home
  • Mortgage details for the current property
  • ID, income, and any lender-specific supporting documents
In most cases, bridge financing is easier to assess when both the sale side and the purchase side are already clearly documented.
Costs & Risks

What to watch before you commit to a bridge loan

Bridge financing can solve a timing problem, but it can also add cost and pressure if the moving parts do not go as planned. This is why understanding the downside matters just as much as getting approved.

Cost-related watch-outs

  • Interest can be higher than standard mortgage pricing
  • There may be setup, legal, appraisal, or admin costs depending on the lender and transaction
  • If timelines change, the temporary cost can grow faster than expected

Timing and stress risks

  • Your sale could be delayed or fall through
  • You may end up carrying two properties for longer than planned
  • Mortgage-breaking, refinancing, or changing financing can create additional costs
Practical mindset: bridge financing can be very useful, but it works best when your sale and purchase timelines are already quite firm.
Alternatives

Alternatives worth comparing before you use bridge financing

Bridge loans are not the only way to solve a buy-sell timing problem. Depending on your equity, mortgage terms, and flexibility, another structure may fit better.

Sell first, buy second

This can reduce financing risk, though it may create moving or timing pressure if you have not yet secured the next home.

Refinance or use home equity

In some cases, refinancing or another home-equity option may provide access to funds, depending on your mortgage terms and available equity.

Negotiate better closing alignment

Sometimes the cleanest solution is simply negotiating closing dates, possession timing, or other deal terms to reduce the gap.

Smart comparison: look at the total cost, your timing certainty, and how much flexibility you really need rather than assuming bridge financing is automatically the best answer.
Popular Questions

Bridge loan FAQs

Clear answers to common questions people ask when buying a new home before the old one has fully closed.

A bridge loan is short-term financing used to cover the gap between buying a new home and receiving the sale proceeds from your current home.

They are usually short-term and often tied to the gap between two closing dates. The exact length varies by lender and transaction structure.

Often, yes. Many lenders want to see signed sale and purchase documents before considering bridge financing.

In many cases, yes. Bridge financing is often used to temporarily access funds tied to the equity or expected proceeds from the home being sold.

One of the biggest risks is timing. If the sale of your existing home is delayed or falls through, you may face added cost and more pressure carrying the transition.

Usually, yes. Depending on your mortgage terms, available equity, and timing flexibility, another structure may be more suitable than bridge financing alone.

Need to close the gap on your new home?

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