Bridge Loans in North Bay: Seamlessly Buy and Sell Your Home
Buying a new home is exciting. The thought of getting the keys to a place near Lake Nipissing or closer to the Laurentian trails is a dream for many. But what happens when you’ve found your perfect next home before your current one has sold? This common timing gap can be a major source of stress, especially in a competitive market like North Bay. You don’t want to miss out on the perfect property, but you can’t afford to carry two mortgages.
This is where a bridge loan comes in. As your local mortgage agent, my job is to make this complex process simple and stress-free.
What is a Bridge Loan and How Does It Work?
What is a Bridge Loan?
A bridge loan, or bridge mortgage, is a short-term, open loan that “bridges the gap” between the closing date of your new home purchase and the closing date of your old home’s sale. It gives you the funds you need to complete the purchase of your new property, even if you haven’t received the proceeds from your existing home yet.
The Problem: Timing the Sale of Your Old Home
You got pre-approved. You have an accepted offer on a new home you love. But in North Bay’s dynamic real estate market, it can be nearly impossible to perfectly align your closing dates. This can leave you in a logistical and financial bind.
The Solution: Bridge Financing
A bridge loan solves this problem. It allows you to use the promise of the sale of your current home to secure a short-term loan that covers the down payment on your new property. This means you can confidently buy your new home without having to wait for your existing property to close.
Why You Might Need a Bridge Loan in North Bay
Whether you’re moving from a cozy starter home in the downtown core to a family-friendly spot on Airport Hill, or simply relocating to be closer to your kids’ new school in Birchaven, the logistics of a simultaneous move can be daunting. A bridge loan in North Bay gives you the flexibility to secure your dream home without the pressure of a rushed sale. It’s the perfect solution for anyone who has a firm sale on their existing property, but needs to access the funds from that sale early.
Overcoming Common Bridge Loan Worries
Many people worry about the high cost and complexity of bridge loans. Is it worth the risk? What if my sale falls through? I get it. The process can seem confusing. My goal is to make the process transparent and easy to understand. I’ll walk you through the interest rates and fees, ensuring you know exactly what you’re getting into, and we’ll only proceed once you feel 100% comfortable.
Why Work With Joel Arndt When Selling and Buying a Home in North Bay?
As a mortgage agent in North Bay, I believe in personalized, client-focused service with clear communication. My team and I understand that every situation is unique, and a one-size-fits-all approach just doesn’t work.
Expertise for Complex Situations
From self-employed clients to those with unique financial circumstances, I have the knowledge and experience to find solutions where others can’t. Whether your new home is out on Tower Drive, or century home on Copeland, I’ll find a way to make it work.
Unbeatable Communication & Support
I pride myself on being a partner, not just an agent. I’m always available to answer your questions and guide you through the process, ensuring you’re never left in the dark.
A Simple Process, From Start to Finish
My priority is to make this process as smooth and efficient as possible. We’ll handle the heavy lifting, so you can focus on packing and preparing for your new home.
What Our Clients Say
“Joel was extremely quick and effective in finding and walking us through a much better mortgage rate than the bank was originally offering us. Could not be happier with the service and really respected the diligence and attention he paid to our case. Would absolutely recommend.” — Eric D.
“Helpful and responsive. Easy to reach. Would recommend.” — Alyssa K.
“Thank you Joel for your quick responses and commitment to getting the job done! Always a pleasure working with you!” — Lori J.
Bridge Loan Frequently Asked Questions (FAQ)
A bridge loan in Ontario is a short-term, open loan secured by the firm sale of your existing home. Usually, you sell your current home and use the proceeds as a down payment on the purchase of your new home. But if the sale doesn’t close until after the purchase, you won’t have the funds in time. So funds from the bridge loan are advanced to you to cover the down payment of your new home until the sale of your current home closes. The loan is then repaid in full at the closing of your existing home.
A bridge loan is a short-term financing option designed to “bridge” the financial gap between the purchase of a new property and the sale of an existing one. It is a temporary solution for homeowners who need to access capital quickly. If you’re expecting to use profit from the sale of your current home as down payment for the purchase of your new home, but the sale won’t complete until after the purchase, you won’t have the down payment in time for the purchase. So a bridge loan gives you the money for your down payment until the sale of your current home completes.
The main qualification for a bridge loan in Ontario is that you must have a firm, signed purchase agreement for your new home and a firm, signed sale agreement for your existing home. The amount of the bridge loan is based on the profit you’ll make from your current property after the expenses of the sale.
Yes, many of the big banks offer bridge loans, but they’re not the only ones. As a mortgage agent, I have access to a wide network of lenders, including other A lenders who offer bridge loans as well. Or, if it’s absolutely necessary, I have access to private bridge loan providers as well, which often leads to a quicker and more flexible solution for my clients.
Typically, you will need a copy of the firm purchase and sale agreements for both your new and old homes. You’ll also need your existing mortgage statements and a firm financing commitment for your new property.
Unfortunately, no. A bridge loan is only possible once you have a firm, unconditional offer to sell your current home. The lender uses this firm agreement as a guarantee that they will be repaid..
The process for bridge financing can be very quick, often a part of the original mortgage application process. If the right documents are in place, lenders can typically approve them quickly to meet tight closing deadlines.
A bridge loan is a great option if you have a firm sale on your existing property but need access to the funds before the closing date. To discuss your unique situation and find out if it’s the right choice for you, book a meeting with our team.
The bridge loan is repaid in a single lump sum when you receive the proceeds from the sale of your old home. Your lawyer will handle the repayment as part of the closing process.
No, a firm, unconditional offer is required. Without a firm sale agreement, the lender has no guarantee of repayment.
Short-term, open loans, like bridge loans, are priced much higher than long-term, closed mortgages. Interest rates will vary between 9% and 11%, plus a $450 – $500 admin fee. The interest is broken down into its “per diem,” or daily rate. Then you are charged a total interest for the amount of time you needed the bridge financing for. If there was 14 days between sale and purchase, then the interest would look something like this:
- Bridge Loan Amount: $100,000
- Annual Interest Rate: 10%
- Daily Rate: $27.40
- Loan Term: 14 days
- Total Interest Cost: $383.60
Ready to Bridge the Gap? Connect with Joel Today!
Don’t let the timing of your real estate transaction add unnecessary stress. Let me help you find the right bridge financing solution to make your move into your new North Bay home seamless.
Contact me today for a free consultation, no strings attached.