Loans Canada Launches Free Credit Score Portal And Is Recognized As One Of Canada’s Top Growing Companies
Loans Canada is pleased to announce it placed No. 131 on the 2022 Report on Business ranking of Canada’s Top Growing Companies.
If you’re looking to sell your home and purchase another, you may consider using the equity in your current home to help you purchase your new home. Unfortunately, whether you’re upgrading your home or downsizing, you’ll likely find that your closing dates for both the home you’re selling and the home you’re buying fall aren’t in sync. This often leaves people short on cash for a down payment as their money is still tied up in equity. That’s where bridge loans come in.
A bridge loan is a short-term loan that helps homeowners purchase a new home by accessing the equity in their current homes. It basically helps “bridge” the gap between the time you buy your new home and sell your current home. That way you can access the equity in your current home immediately to purchase your new home, without having to wait to sell your home first.
When you decide to sell your home and buy a new one, it can be difficult to sell your home and buy a new one within the same period. Generally, homeowners will try to sell their current home first in order to use the money from the sale to help finance their new home.
When you apply for a bridge loan, the lender will assess how much they can lend to you. The maximum you can qualify for is the amount your home is worth minus the balance left on your mortgage.
For example, if you owe $350,000 and your home is valued at $500,000, then you could be eligible for $150,000. Do keep in mind that, the lender will also subtract the closing costs from your bridge loan amount.
Learn how to build equity in your home.
Once your current home has been sold, the proceeds from the sale can then be used to pay off the bridge loan. If you’re unable to sell your home before the bridge loan term ends, you’ll be responsible for your current mortgage payments, the mortgage on your new home and the bridge loan.
Check out our infographic for a visual look at how a bridge loan works.
Watch mortgage broker Dave Johnson explain what a bridge loan is and when they should be used.
Depending on your financial health and the equity in your home, you may be able to get a bridge loan from a bank or a private lender.
Many banks and other traditional financial institutions offer bridge loans, however, they often have strict approval requirements that potential borrowers must meet. This can make it difficult for individuals with bad credit to qualify for a bridge loan. Generally, banks will look at the borrower’s credit score, income, employment, and equity in their home.
On the other hand, there are private lenders who offer bridge loans. These lenders tend to have lower requirements, with some only requiring that you have equity in your home. These private lenders are often the best choice for those with poor finances and low credit scores.
Do you know what the minimum credit score required for mortgage approval is?
Bridge financing has both pros and cons. Be sure to consider both, to see if a bridge loan is a good option for you.
Bridge Loans can be a good option if :
Check out what is a Power Of Sale for a mortgage.
If you think a bridge loan from a private lender might be a good solution for your current situation, then apply today to see if you qualify.
Note: Loans Canada does not arrange, underwrite or broker mortgages. We are a simple referral service.
Save time and money with Loans Canada. Research and compare lenders before you apply. Share your experiences with Canada's top lenders.
Loans Canada is pleased to announce it placed No. 131 on the 2022 Report on Business ranking of Canada’s Top Growing Companies.
All consultations and conversations with Loans Canada and its partners are confidential and risk-free. Speak with a trusted specialist today and see how we can help you achieve your financial goals faster. Loans Canada and its partners will never ask you for an upfront fee, deposit or insurance payments on a loan. Loans Canada is not a mortgage broker and does not arrange mortgage loans or any other type of financial service.
When you apply for a Loans Canada service, our website simply refers your request to qualified third party providers who can assist you with your search. Loans Canada may receive compensation from the offers shown on its website.
Only provide your information to trusted sources and be aware of online phishing scams and the risks associated with them, including identity theft and financial loss. Nothing on this website constitutes professional and/or financial advice.