Bridge Financing
Bridge financing cost calculator.
Bridge mortgages cover the gap when your new home closes BEFORE your existing home sells. Charged by the day, plus a setup fee.
Live math · no calculate button| Canadian semi-annual compounding · OSFI B-20| Ontario + Toronto LTT-aware| Same engine our advisors use
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Total bridge cost
$4,096
60 days at 8.50%
Per-day interest$35
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Methodology · Canadian-correct
Bridge financing is short-term (typically 30-90 days) and tied to the firm sale of your existing home. Most A-lenders offer bridge alongside your purchase mortgage.
Mortgage glossary— terms that matter for this calculator
What is bridge financing in Canada?
Short-term financing (typically 30-120 days) that bridges the gap between your new home's closing date and your existing home's sale closing. Charged <strong>by the day</strong> at a rate of typically Prime + 2-4% (so ~8-10% today), plus a one-time setup fee of $300-1,000.
How much does bridge financing cost?
Math: <code>(bridge amount × annual rate × days) ÷ 365 + setup fee</code>. Example: $300K bridge at 9% for 30 days = $2,219 in interest + $500 fee = $2,719 total. Most bridge files cost $1,000-3,500 in total, depending on the bridge amount and duration.
When do I need a bridge mortgage?
Non-simultaneous closings — your new home closes Monday but your old home doesn't close until Friday. You need bridge financing to fund the down payment from your old home's equity before that equity is liquid. Most A-lenders offer bridge as part of the new mortgage package.
Can I avoid bridge financing?
Three options: (1) arrange both closings on the same day (sometimes possible, often not), (2) close your sale FIRST and rent for a few days, or (3) use a HELOC against your existing home for the down payment instead of bridge. The bridge route is usually cheapest for short gaps.
Who provides bridge financing?
Most major Canadian lenders bundle bridge financing with new-purchase mortgages — RBC, TD, Scotia, BMO, CIBC, NBC, and most monolines. The bridge is typically secured against both properties simultaneously. We coordinate the timing across both closings on every move file.