Bridge Financing Can Make the Journey Between Home Purchases Easier
Travel is never smooth, and financing between homes can often be just as difficult. A mortgage bridge financing canada (known in Canada as "bridging loan") may help make this transition simpler. Banks typically require that you present both copies of the sale agreement for your old home as well as purchase agreements for both properties in order to qualify for a bridge loan. What is a bridge loan? Bridge loans provide temporary financing solutions that assist buyers who are in the midst of selling one property and purchasing another one, often at higher interest rates. Before opting for this form of funding, potential borrowers should conduct an in-depth calculation before taking this route. Banks typically offer 90-95% loan-to-value ratio bridge loans and allow buyers to borrow against existing equity in their home. To be eligible, however, buyers must first have secured the sale of their existing property and have put down a deposit on the one they're purchasin