If you want to pay off your old home and buy a new one, a bridge mortgage may be the solution you’ve been looking for! It’s important to think about what a bridge mortgage really is and if you’re going to be able to really reap the benefits of this kind of financing. Also known as “hard money lending”, a bridge mortgage gives the borrower the opportunity to buy one property while the other is still on the market. It is intended to be a short term solution and to be repaid quickly.
How do Bridge Mortgages Work?
This is the situation in which a typical bridge mortgage works:
You have a home on the market that you’re currently trying to sell. You’ve been looking for a house and you’ve finally found one. You aren’t able to sell the house in time to buy the new one, and you need to bridge the gap in your financing. Your bank can only give you so much for the next house and you don’t have enough to cover the down payment. This is where a bridge mortgage comes in handy!
With a bridge mortgage you’ll be able to fill in the holes in financing and be in your home a lot quicker than waiting for your old home to sell. The downside to this is that you could effectively wind up with 3 mortgages at the same time. A bridge mortgage is a short term financial solution, and you’re going to need to make sure that you don’t let the debt linger. You’ll want to talk with one of our Toronto mortgage brokers to see if this really is the kind of financing that fits you.
Now is the Time to Buy
The real estate market in booming in Toronto and the surrounding areas (GTA), and you’ll be able to find a home and sell it quickly. By next year you may find yourself in an entirely different situation, so you’ll want to take advantage of good circumstances while they’re here. You don’t want to let an opportunity pass you by because you’re not sure what course to take. If you want to sell your home and buy a new one, while getting in on some of the lowest interest rates in Canadian history, now is the time to do it.
Get the Best Deal Possible
Getting the best deal on a bridge mortgage means working with a mortgage broker! But you don’t want just any mortgage broker, you want someone with experience and connections who can ensure that you get the best deal possible. From the lowest interest rate to getting the best loan amount and repayment terms, we’ll help you get what you need. There are many different kinds of lenders who offer this kind of financing, and you’ll want to make sure you choose wisely. If you’d like to know what we can do for you, contact us for a free consultation today.
ahead and talk with one of our Toronto mortgage brokers and see what you can do to get financing.