Bridge Loan

A bridge loan is a short-term loan used to cover the timing gap between purchasing a new home and selling your existing one. The loan is typically 30–120 days and is secured against the equity in your current home. Interest rates are higher than a mortgage (often Prime + 2–4%) and there's usually an administrative fee. Bridge loans are generally available through the same lender providing your new mortgage, and approval depends on having a firm sale agreement on your existing property. Most lenders require the purchase and sale close within a defined window (often 90 days).