Traditional lenders offer bridge financing.
To help you prepare financially, for example with Scotiabank, they charge prime plus 5% for the bridge. Also, they typically charge an administrative fee of $250.
Using an example prime rate of 3.95%, a bridge of $10,000 would cost you approximately $2.45 a day plus the administrative fee.
Alternative lenders DO NOT offer bridge financing and the closing dates must align or the sale must be complete before the purchase closing date.
For a bridge there needs to be a firm sale (all conditions waived) on your existing home and a firm purchase (all conditions waived) on your current home.
A bridge loan is not guaranteed and you need to apply and be approved for it.
Click here to learn more about bridge financing.
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