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?
| Item | Amount |
|---|---|
| Interest at prime + 2% (6.45%) | $1,670 |
| Admin fee | $300–$500 |
Get a mortgage broker's bid too
Licensed mortgage brokers bid alongside banks, credit unions and private lenders on MortgageBids.ca. One broker bid can tap dozens of lenders, and on most prime mortgages the lender pays the broker, not you. Why use a mortgage broker · Get broker and lender bids
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.
Related
Challenge your mortgage rate
Connect with verified brokers and lenders bidding on your mortgage. Free for homeowners, four short steps.