Bridge financing: when your purchase completes before your sale

A bridge loan may help when you have equity in a home you are selling, but your new purchase completes before those sale proceeds are available. It is short-term borrowing—not an automatic extension of your mortgage approval.

What the loan actually bridges

The gap is usually between the completion dates when funds change hands, not simply the dates you receive keys. Your lawyer or notary and Matt confirm how much cash is needed and when. A deposit already paid may reduce the remaining amount, but fees, available savings and closing adjustments also matter.

A simple example

Suppose your purchase completes October 20 and your sale completes October 30. If part of the down payment depends on that sale, you may need funds for the ten-day gap. This is an illustration, not an approval or a quote. The lender decides the amount, dates, security and repayment conditions.

What lenders may ask for

Many lenders require a firm sale agreement with conditions removed, plus the purchase contract and evidence of expected net equity. Available programs, maximum terms and amounts vary. The 120-day figure sometimes shown in brochures is not a promise that every lender offers that term.

Both signed contracts and all amendments.
Confirmation of condition removal where required.
Current mortgage and secured credit-line payout information.
A closing-funds calculation and your legal professional’s contact details.

Costs and repayment

Bridge financing is separate from the long-term mortgage. Ask about the interest rate, how daily interest is calculated, lender administration fees, legal fees and any minimum charges. It is commonly repaid from sale proceeds through the conveyancer. Make sure you understand what happens if those proceeds arrive late or are lower than expected.

If your sale is not firm—or dates change

Standard bridge financing may not be available. Private or alternative short-term borrowing can have materially different costs and risks. Do not commit to a purchase on the assumption that a bridge will be arranged afterward. Contact Matt before signing an amendment, and tell your legal professional immediately if either closing is at risk.

Ask for written terms and a total-cost illustration.
Confirm who advances the money and who repays the bridge.
Keep some accessible cash for expenses outside the bridge amount.

Let’s make this personal

Tell Matt what matters most to you, and what feels unclear. We can help you work through the mortgage side of the decision and coordinate the next steps with your other professionals. Email matt.parker@indimortgage.ca or call 778.897.2554.

General Canadian mortgage guidance with British Columbia context; reviewed October 16, 2026. Your lender’s written requirements, mortgage contract and professional legal or tax advice take priority.