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Bridge financing

Bridge financing is a short-term loan that lets you use the equity in your current home to buy your next one before the sale closes. In Canada most lenders offer bridge loans when you have a firm sale, typically for up to 90 to 120 days, at prime plus a margin plus a fee.

Updated October 7, 2026

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Key takeaways
  • Usually requires a firm (unconditional) sale on your current home.
  • Typical cost: prime + 2% to 3% plus an admin fee.
  • Without a firm sale, a private bridge loan or HELOC may work.

How does bridge financing work in Canada?

The lender advances the down payment for your new home from the equity in your old one and is repaid when the sale closes.

What does a bridge loan cost?

Bridge loan example: $210,000 for 45 days
ItemAmount
Interest at prime + 2% (6.45%)$1,670
Admin fee$300–$500

Bridge financing vs HELOC

A HELOC on your current home can do the same job if it's already in place and large enough.

Frequently asked questions

Can I get bridge financing without a firm sale?

Some private lenders offer open bridge loans at higher cost.

MBWritten by the MortgageBids.ca editorial team. Last updated October 7, 2026. General information only; your lender confirms terms for your file.

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