Bridge Financing
When your closing dates don’t match,
we help you stay on track
Selling your current home while buying a new one? If the closing dates don’t align perfectly, bridge financing offers a smart, short-term solution that lets you access the equity from your current home before it officially sells. This way, you can close on your next property—without unnecessary stress or scrambling for funds.
At Better Mortgage Select, we handle this process with precision and care. Our team ensures your transition between homes is seamless, well-planned, and completely transparent.
How the process works
Here’s what to expect when we set up a bridge loan for you:
1. Initial review
We assess your closing dates and determine whether bridge financing is required.
2. Lender matching
Not all lenders offer this product, so we make sure you're paired with one that does—and one that aligns with your full mortgage strategy.
3. Loan structure
The loan is secured against your current property, which must be sold firm. We ensure your new purchase is also locked in.
4. Funding & closing
Your lawyer and lender work together to advance the funds just before your new home closes. You don’t personally receive the money—it goes exactly where it’s needed.
5. Repayment
Once your home sells, the bridge loan (and any interest or fees) is repaid directly from the sale proceeds.
The process is smooth and behind-the-scenes when done right—and that’s what we’re here for.
What is bridge financing?
Bridge financing is a temporary loan that taps into the equity in your existing home, giving you the funds you need to close on your next property before your sale completes. It’s especially useful when:
- Your purchase date comes before your sale
- You need extra time to move out of your old home
- You want to secure a new property before listing your current one
Handled correctly, a bridge loan gives you flexibility during a major life transition—without needing to liquidate investments or borrow from family.
What does bridge financing cost?
Because these loans are short-term and higher-risk, they do carry slightly higher interest rates and fees than a traditional mortgage. However, due to their brief duration, total costs are often quite manageable.
Typical terms:
- Interest rate: Prime + 3% to 5%
- No monthly payments — interest accrues and is paid at the end
- One-time lender fee (varies by institution)
- Legal/admin costs may apply, depending on complexity
Your Better Mortgage Select advisor will give you a clear cost breakdown up front,
so you know exactly what to expect.
How much can you borrow?
Let’s say:
- Your current home is worth $600,000
- Your mortgage balance is $350,000
- You have $250,000 in equity
A lender may allow you to borrow up to 90% of your available equity, minus closing cost buffers—so potentially $200,000–$220,000 as a bridge loan.
Final approval depends on having:
- A firm sale of your current home
- A signed agreement for your new purchase
- Satisfactory appraisal and credit review
Are there risks?
As with any financing, there are risks to consider—but with the right planning, they’re easy to manage:
- If your home doesn’t sell as expected, you could be carrying two mortgages plus a bridge loan.
- If your bridge period extends, interest costs increase.
- If you miss mortgage payments during the transition, the lender could take action.
That’s why we build your file carefully and ensure all parties are aligned before moving forward.
Bridge the gap with confidence
Secure your next home—even if your sale hasn’t closed yet.
Why work with Better Mortgage Select?
Bridge financing isn’t a side service—it’s a strategy. At BM Select, our specialists review every detail,
every date, and every dollar to ensure your transition between homes is stress-free.
You’ll benefit from exclusive access to lenders that specialize in bridge loans, expert planning that protects you from surprises,
and clear, proactive communication from start to finish.
Moving shouldn’t feel like a gamble. Let us help you bridge the gap—with confidence.