Pineapple Financial
Bridge Loan
A bridge loan is a type of short-term financing that is used to bridge a temporary gap between the purchase of a new property and the sale of an existing property. Bridge loans are commonly used by homebuyers who need to access funds quickly to purchase a new home while waiting for the sale of their current home to close. Here are some key things to know about bridge loans:
1. Purpose: Bridge loans are intended to provide temporary financing to bridge the gap between the purchase of a new property and the sale of an existing property. They are typically used by homebuyers who need to access funds quickly to close on a new property before the sale of their current property is complete.
2. Terms: Bridge loans are typically short-term loans, with terms that range from a few weeks to a few months. The interest rates on bridge loans are typically higher than traditional mortgage rates, and they may also come with higher fees and charges.
1. Purpose: Bridge loans are intended to provide temporary financing to bridge the gap between the purchase of a new property and the sale of an existing property. They are typically used by homebuyers who need to access funds quickly to close on a new property before the sale of their current property is complete.
2. Terms: Bridge loans are typically short-term loans, with terms that range from a few weeks to a few months. The interest rates on bridge loans are typically higher than traditional mortgage rates, and they may also come with higher fees and charges.
3. Eligibility: To be eligible for a bridge loan, you will need to have a good credit score and sufficient equity in your existing property. Lenders will also consider your income and other factors when evaluating your application.
4. Risks: Like any form of debt, bridge loans come with risks. If you are unable to sell your existing property or if the sale falls through, you may be responsible for repaying the loan on your own. It’s important to carefully consider the risks and ensure that you have a plan in place to repay the loan if necessary.
If you are considering a bridge loan, it’s important to work with one of our mortgage brokers who can help you understand your options and navigate the application process. It’s also important to carefully consider the costs and risks involved and ensure that the loan is affordable and sustainable over the short term.
4. Risks: Like any form of debt, bridge loans come with risks. If you are unable to sell your existing property or if the sale falls through, you may be responsible for repaying the loan on your own. It’s important to carefully consider the risks and ensure that you have a plan in place to repay the loan if necessary.
If you are considering a bridge loan, it’s important to work with one of our mortgage brokers who can help you understand your options and navigate the application process. It’s also important to carefully consider the costs and risks involved and ensure that the loan is affordable and sustainable over the short term.
BOOKING FORM
Approved In Minutes
