Bridge Financing in Ontario
When you close on a new home before selling your existing one — how bridge loans work.
What bridge financing solves
Bridge financing covers the gap when you close on a new home before the sale of your existing one funds. It uses your existing home's equity as security, typically funded by the same lender providing your new mortgage.
Typical bridge terms
Bridge loans run 30–120 days, interest-only at prime + 2–4%, with a one-time setup fee of $200–$500. Some lenders offer interest-free bridges up to 30 days; most charge from day one.
Maximum bridge amount
Most lenders cap bridge financing at 90% of the sale price of your existing home, less your existing mortgage. The firm sale agreement must already be in place — bridges are not available against a home that hasn't sold yet.
When a bridge isn't possible
If your existing home hasn't sold (no firm offer), traditional bridge financing isn't available. In that scenario, private lenders can provide 'open bridge' financing — at higher cost — to cover the gap until sale.
Coordinating closing dates
The best outcome is overlapping closes (sell Friday, buy Monday) that eliminate bridge cost entirely. Real estate timing rarely cooperates perfectly, but a good broker and lawyer working together can minimize the bridge window.
Have questions about your situation?
Every mortgage file has its own story. A 15-minute call with Jay is enough to know your real options.