Craig Johnston Personal Real Estate Corporation · Brokerage: Royal LePage Elite West
Buyer · Bridge Financing
Move-up buyers across BC 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.
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How does bridge financing work for a move-up in BC?
Bridge financing is a short-term loan that advances the equity from your current home so you can complete your purchase before your sale closes. Major banks require a firm sale on your existing home first. Terms vary — some major banks describe bridge terms of up to 90 days, while others describe six months or longer — and rates are usually higher than a regular mortgage.
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
Varies by lender. Some major banks describe bridge financing as typically up to 90 days; others say bridge loans typically run six months and can range from 90 days to 12 months or longer. Confirm with your lender.
Cost
Usually a higher rate than a regular mortgage — one major bank says bridge loans carry rates similar to open-rate mortgages — and terms, costs and conditions vary widely by lender. Ask your lender for the exact rate and any setup fee in writing.
Eligibility
Most lenders require: a firm sale on your old home (subjects removed) before approving bridge financing. At major banks, a firm sale agreement on your existing home is a stated requirement — a listing alone isn't enough.
Maximum amount
Based on your equity: roughly the firm sale price minus the mortgage you owe, reduced by an estimate of selling costs (one major bank's published method). Each lender sets its own limit.
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.
| Term | What major banks commonly publish |
|---|---|
| Requirement to qualify | A firm sale agreement on your existing home; some also ask for copies of the sale and purchase agreements, and approval for their own mortgage or home equity line on the new home |
| Typical length | Varies by lender: some describe a maximum of about 90 days; others typically six months, ranging from 90 days to 12 months or longer |
| Amount | Based on the equity in your current home (value minus mortgage owed), reduced by an estimate for closing costs |
| Cost | Usually higher than conventional financing; some compare it to open-rate mortgage rates. Terms and costs vary widely by lender |
| Main risk | If the sale falls through, you may carry two mortgages until a new sale is finalized |
Source: Major Canadian banks' published bridge-financing pages (terms vary by lender). Other lenders' terms differ — confirm with your lender.
Bridge rules come from your lender, not your city — but where you're selling and buying changes how much equity you're moving, how big the next mortgage is, and how quickly you're likely to get the firm sale a bridge requires. Figures below are Greater Vancouver REALTORS® benchmarks for October 2026.
The detached benchmark is $1,571,400 with a sales-to-active ratio of 13.2%; townhouses are at $962,600. GVR says downward price pressure tends to occur when the ratio stays below 12%, so in slower segments, budget realistic time to reach a firm sale before counting on a bridge.
Benchmarks of $854,900 for townhouses and $1,235,900 for detached make PoCo a common starting point for move-ups into Coquitlam or Port Moody. The townhouse sales-to-active ratio is 31.1% — check the current number when estimating how long your own sale may take.
Port Moody's detached benchmark is $1,868,000, above the $1.5 million line where federal rules require at least 20% down, so bridged equity often has to cover a larger down payment here. The detached sales-to-active ratio is 8.6%.
Anmore's detached benchmark is $3,001,700, with a sales count of 3 against 36 active listings in October 2026. With so few sales, both pricing your current home and timing a firm sale need care. Most of Anmore is on private septic — the Village says it has no involvement in septic management and sewer connections are in Anmore Green Estates only — so plan inspection time into either side of the move.
I don't publish a separate monthly Belcarra benchmark, so pricing a Belcarra sale or purchase relies on individual comparable sales. Belcarra replaced private and shared wells with a village water system supplied by the Greater Vancouver Water District, so confirm a specific property's water service during subjects.
No pressure. No obligation. Just a 20-minute call to talk through your specific situation. I work across Metro Vancouver, with a focus on Coquitlam and the Tri-Cities.
When you are buying your next home before the sale of your current one has funded, bridge financing is often what makes the timing work. Here is how it actually functions.
Want the cost side? My bridge financing cost guide walks through prime-plus pricing, a worked 30/60/90-day example and when a bridge stops making sense.
What it is
A bridge loan covers the short window between buying your next home and receiving the proceeds from selling your current one, so you are not forced to line the two closing dates up perfectly.
When you'd use it
It is most common in a move-up: you have found the next home and need to complete on it before your sale funds arrive. The bridge carries you across that overlap for a short period.
What lenders want
Lenders typically require a firm, subject-free sale on your existing home before extending a bridge, and the amount available is tied to the equity you have built. Specific terms vary from lender to lender.
What it costs
Bridge loans are brief and usually carry a higher interest rate plus an administration or setup fee. Because the term is measured in days or weeks, the total dollar cost is often modest — but confirm the figures with your lender.
The main risk
If your existing sale collapses, you can be left carrying two properties at once. That exposure is why lenders lean on a firm sale first and why the structure of both deals deserves care.
For you
Bridge financing can turn a stressful sell-and-buy into a manageable one, but it is fundamentally a mortgage-professional conversation about your numbers and timing.
Every bridge situation turns on your own equity, the firmness of your sale and your lender's specific rules, so treat the points above as orientation rather than a quote.
Craig regularly coordinates move-up timing between buyers and their lenders so the overlap between selling and buying is planned in advance — not improvised in the final week.
Expect to provide both contracts: the firm sale agreement on the home you're selling and the purchase agreement on the home you're buying. Major banks' published terms list both, and a firm sale agreement must be in place to qualify. The lender uses those two documents to confirm the equity being advanced and the two completion dates the bridge has to span. Your lender will also want the usual mortgage documents for the new purchase, so start that file early rather than in the week before completion.
Often, yes. One major bank, for example, says you must be approved for its own mortgage or home equity line of credit on the new property to qualify for its bridge loan. That matters if you were planning to move your new mortgage to a different lender for a better rate: the bridge and the new mortgage are usually arranged together. Policies differ between banks, credit unions and other lenders, so ask any lender you're comparing whether a bridge is available only with their mortgage, and what it costs.
It's based on the equity you'll receive from your firm sale. One major bank's published example: a home worth $300,000 with $200,000 owing could support a bridge of about $100,000 — reduced by an estimate for closing costs such as commission and legal fees. So the starting point is your sale price, minus your mortgage payout, minus selling costs. Each lender sets its own limits, so treat this as the method, not a promise of the amount. Whether you're moving within the Tri-Cities or elsewhere in Metro Vancouver, I build that net-equity estimate with you before you write an offer.
It's repaid from your sale proceeds on the completion of your existing home. The bridge funds when your new purchase completes, then the money from your sale pays out the old mortgage and the bridge loan, with the balance coming to you. Major banks describe bridge financing as covering exactly this gap between buying the new home and receiving the sale proceeds. Your lawyer or notary on the sale handles the payouts, so make sure both lawyers know a bridge is in place.
Any change to the completion date needs a written amendment both parties sign — and you should tell your lender before you agree. A bridge is approved against specific dates and a set term (some major banks describe up to 90 days; others say terms typically run six months), so pushing your sale later can stretch the bridge, add interest, or fall outside the lender's limit. If the sale collapses entirely, one major bank warns you may be paying two mortgages until a new sale is finalized. That's why I check the bridge term before agreeing to any date change.
It can help. One major bank lists, as one use of bridge financing, giving you the funds and time to make upgrades to your new home before you live there. In practice that means completing on the new home while you're still living in the old one, then using the overlap for painting, flooring or other work. Remember the bridge itself is advanced against your sale equity, so the more of it that goes into renovations, the less is left for the down payment — confirm the structure with your lender first.
The bridge only advances the equity from your sale; the price gap to your next home is what drives the size of your new mortgage. For example, Greater Vancouver REALTORS® benchmarks for October 2026 put a Port Coquitlam townhouse at $854,900, a Coquitlam detached home at $1,571,400 and a Port Moody detached home at $1,868,000. Under federal rules, a purchase of $1.5 million or more needs at least 20% down, so on higher-priced moves the bridged equity often has to cover a larger minimum down payment.
When you haven't sold yet. Major banks require a firm sale before they'll bridge, so a buyer who hasn't sold can't rely on one. A subject-to-sale offer makes your purchase conditional on selling by a set date; BCREA notes the buyer must use best efforts to sell during that time. It's more appealing to sellers when the market has plenty of supply — GVR says downward price pressure tends to occur when the sales-to-active ratio sits below 12% for a sustained period. If you want to weigh both routes for your move, book a strategy call.
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October 2026 Coquitlam detached HPI is $1,571,400, -7.0% YoY. What that means for your buy or sell decision — without the salesy fluff. One email per month. Unsubscribe anytime.
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Bridge financing works best when the numbers and dates are settled before you fall for the next house. Here's the order I work through it with move-up clients.
I start with a realistic sale price for your current home based on recent comparable sales, then subtract your mortgage payout and selling costs. That net equity is what a lender can bridge, so it sets your real down payment before you shortlist a single home.
I ask you to confirm three things with your lender or broker up front: their maximum bridge term, whether the bridge requires their mortgage on the new home, and the rate and any fees. Those answers decide how far apart your two completion dates can be.
Because major banks require a firm sale before they bridge, I usually list and sell first, then negotiate the purchase. If you'd rather buy first, we discuss a subject-to-sale offer instead and how sellers in the current market are likely to view it.
I set the purchase completion inside your lender's bridge term and share both contracts with your lawyer or notary. If anyone asks to move a date, I check the bridge term with you and your lender before anything is signed in writing.
For examples of how Tri-Cities families have sequenced a sale and purchase, read my Tri-Cities case studies. Read the Tri-Cities case studies →
4.9 stars across 38+ Google reviews. Three from recent clients below.
“Craig kept me informed of the local market for a couple of years before I asked him to handle my Coquitlam sale. He laid out the strategy upfront, the listing generated a lot of interest, and we had an acceptable offer in under a month. I was stressed going in — Craig helped me overcome a lot of my anxiety. I’ve already introduced him to my sister, who plans to sell soon.”Fj Young
“Craig was there with us everyday. Guiding us to our next step we were kept informed daily sometimes multiple times a day as to what was happening… Our home sold in only 6 days with multiple offers.”Gerry & Aline Howitson
“After searching for several years, I knew exactly what I was looking for—and Craig delivered. We viewed a handful of properties, and the home he ultimately found was exactly what I had been searching for. I couldn't believe how quickly he nailed it.”Warren Chu
A 20-minute strategy call covers budget, neighbourhoods, timing and the questions specific to your situation — and ends with a written one-page plan. No pressure, no obligation.
4.9 across 38+ Google reviews Earned on a Top 1% Team — Greater Vancouver REALTORS®, 2023–2025 Tri-Cities resident 47+ yearsOr call direct: 604-202-6092
