Bridge financing
The BrokerFold Team — Product + Engineering
Last reviewed
Bridge financing is a short-term loan that lets a homeowner close on a new purchase before the sale of their current home completes — “bridging” the days or weeks between the two closing dates. The lender advances the equity you’ve already sold but haven’t yet been paid for, secured against a firm sale agreement, and the bridge is repaid the moment your sale closes.
Why the gap exists at all
Perfectly aligned closings are rare, and often undesirable: closing a sale and a purchase on the same day means moving in a single frantic afternoon with no room for a delayed wire. Many move-up buyers deliberately buy with a closing a week or two before their sale, use a bridge for the overlap, and move on their own schedule. The bridge’s cost — premium interest for a short period plus a fee — is frequently cheaper than the risks of a same-day choreography.
The limits that matter
The mainstream product requires a firm sale: conditional sales don’t qualify, because the repayment isn’t certain. The loan covers the equity gap, not new affordability — you still need to qualify to carry the new mortgage. And if a sale collapses after a bridge is arranged, the borrower faces exactly the scenario the firm-sale rule exists to prevent, which is why the conditional-vs-firm status of the sale agreement is the first thing a lender asks about.
Why it matters for your practice
Buy-first-or-sell-first is the defining anxiety of every move-up client. Explaining bridge financing plainly — what it costs, what it requires, what it can’t fix — turns that conversation from fear into sequencing, and it belongs in any seller’s guide aimed at owners who are also buying.
Frequently asked questions
Do I need a firm sale to get bridge financing?
With mainstream lenders, almost always yes — the bridge is advanced against a signed, unconditional sale agreement on your existing home, because the sale proceeds are the repayment. Bridging against an unsold home is a different, riskier product from private or alternative lenders at meaningfully higher cost.
How long can a bridge run?
It's built for short gaps — days to a few months between your purchase closing and your sale closing. Lenders cap the term, charge interest at a premium over standard mortgage rates plus a setup fee, and expect repayment the day your sale completes.
Keep reading
- Completion vs possession date In BC a sale closes in stages: the completion date moves title and money, the possession date hands over keys, and the adjustment date splits the bills.
- Conditional vs firm offer A conditional offer has escape hatches — financing, inspection, sale of home. A firm offer has none. What each means for risk, price, and strategy.
- Closing costs Closing costs are everything a buyer pays beyond the price — land transfer tax, legal fees, title insurance, adjustments — typically a few percent extra.