Buyer · Bridge Financing
Move-up Coquitlam buyers often face a timing gap: your new purchase closes before your current home sale. Bridge financing covers the gap. Here's the verified read on how it works in BC.
Verified · Buyer · Bridge Financing
What it is
Short-term loan from your lender to bridge the gap between buying your new home and selling your current one. Funds the down payment on the new home using the equity in your old home.
Typical duration
30-90 days. Some lenders allow up to 120 days.
Cost
Bridge loan interest typically 1-3% above your mortgage rate. Plus a flat administration fee ($200-$500).
Eligibility
Most lenders require: a firm sale on your old home (subjects removed) before approving bridge financing. Some lenders may approve based on listing alone but with stricter terms.
Maximum amount
Typically capped at 75-80% of your old home's appraised value, minus existing mortgage balance, equals the bridgeable equity.
Closing dates needed
Your lender wants to see both closing dates clearly: new home closes (you take bridge loan) → old home closes (bridge loan paid off from sale proceeds).
Risk
If your old home sale collapses after the bridge loan is funded, you're carrying both mortgages. Have a back-up plan: longer-term financing, family loan, lower-priced new purchase.
Alternative: subject-to-sale offer
Instead of bridging, you can write your new offer subject to the sale of your existing home. Sellers may accept with a 'time clause' (24-72 hr right of first refusal if they get another offer). Less reliable in hot markets.
Talk to your mortgage broker
Bridge structure varies by lender. Compare 2-3 lenders before committing.
No pressure. No obligation. Just a 30-minute call to talk through your specific situation.