Canadian Maple Leaf Licensing Info: Alberta Mortgage #MW-0511205,
FSCO (Ontario) #10315,
Saskatchewan Mortgage #315872, and all other provinces.
 
Division of

The Mortgage Group®


GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
^
50% - Moderately

Bridge Loan


Synonyms:financing, short-term
Filed Under: financial-banking, mortgages, real-estate
Tags: banking, financing, loan, mortgage
 

Definition of bridge loan

bridge loan
1. A loan that "bridges" the gap between the purchase of a new home and the sale of a current or existing home. The current home is used as collateral and the bridge loan is used to pay closing on the new home before the current home is sold. Some bridge loans are structured to completely pay off the existing mortgage at the bridge loan's closing, while other variations of the loan add the new debt to the old debt. Bridge loans usually come with six month terms.

Related Terms and Acronyms:

  • bridge financing   A short-term, high interest loan that allows a seller to purchase a new property before selling an existing property.
  • commercial mortgage   A mortgage for commercial property.
  • end loan   The final mortgage on a property, as opposed to a construction or other interim loan.
  • loan   Letting another party use something of value temporarily.
  • mortgage (mtg)   A mortgage is a contract stipulating a specific real property, typically a residence or building, as collateral for a loan. The mortgage incurs a rate of interest that varies according to term and other features.
  • open mortgage   A mortgage that can be paid off prior to maturity without penalty.
  • operating loan   A loan intended for short-term financing, supplying cash flow support or to cover day-to-day operating expenses.
  • secured loan   Borrowed money that is backed by collateral.

Search the Glossary

Compare Term Rates Using Our New Mortgage Calculator
The length of your mortgage term is often correlated with your interest rate. By and large, longer terms have higher rates and shorter terms have lower rates. With our mortgage calculator you can try out different mortgage terms and rates in order to see how they will affect the amount of interest you will end up paying in the long term.
New Mortgage Calculator with Rate Comparison
 
Brokers Compare Mortgage Rates
Think the mortgage rate that your bank offered you looks a little high? You're probably right. Unlike a with a mortgage broker, your bank won't shop around for the best rate on the market. Click or tap on the mortgage rate comparison link below and check out the difference for yourself.
Mortgage Rates
 
Best Rates on Home Mortgages
When shopping for a home mortgage, ensure that you secure the best rates in Canada. Use the services of a mortgage broker to access the best products on the market, and get exactly what you need.
Best Rates For Home Mortgage