Bridge Financing in Calgary — Quick Loan Processing at Lowest Rates

Basically the process works like this the lender would advance the second mortgage and the remainder of any down payment to the new home and basically lean the existing sale to ensure that they recover the money lent for down payment. It can guarantees a smooth transition from one property to the next and takes away the head ache that can occur of trying to close two properties on the same day.

Bridge financing also involves making sure that the existing properties sale has all of its conditions met. The bridge financing lenders in Calgary vary in how much money the will lend and how long they will lend that money to you. There is a cost to use this service and each lender may vary in the cost of bridge financing, some will be prime plus 2% and as high as prime plus 5%.

The good news is that all you are actually Bridging is the portion borrowed for the down payment on the property and your new mortgage starts before the sale of the existing home is completed. When you Bridge finance you are actually at some point carrying two mortgages. With that said sometimes the existing home doesn’t close on time or in the odd case doesn’t close at all so you may be responsible for two mortgages for longer than you planned and therefore paying the mortgage and the interest on the bridged loan.