Bridge financing is used to provide funding in the period between the sale of one property and the purchase of another. It is a short term financial solution that can allow you to continue the process of moving or buying a home, despite your need to complete the sale of the existing property.
The Advantages of a Bridge Loan
When you are buying one home while selling another, it can be hard to determine how to handle the down payment for the next property. This is where bridge financing can help immensely. A short-term funding solution, bridge financing can ease the gap between the sale of one home and the purchase of another.
There are a number of advantages to bridge loan financing:
- Gives you more time to complete your move to the new home: it gives you the money you need to cover down payment for the next property without having completed the sale of the existing property.
- It can sometimes take longer to complete the sale of your existing home, which can cause unnecessary stress — making the home sale process seem overwhelming.
- Even if you are able to cover two mortgages for a short while, a bridge loan can help keep your savings in place, should you need the money for whatever reason.
Mortgage Broker Debbie Viveiros serves across Bradford and surrounding areas including Newmarket, Innisfil, Keswick, Barrie,East Gwillimbury, Holland Landing, Vaughan, Markham, Aurora.