Short-Term Mortgage Financing & Bridge Loans

Do you need cash to payoff a large expense, and have restricted access to credit? Have you recently been let down by a bank?

If so, you should consider working with a private mortgage lender who can offer you a personalized short term financing solution or bridge loan to help you regain control of your finances.

What is a Bridge Loan?

A bridge loan is a short term mortgage solution from a private mortgage lender for credit constrained Canadians who are looking for financial help to deal with a specific debt or credit issue. Bridge loans are a great option for those who have been rejected by banks and other large financial institutions.

How does it Work?

A bridge loan is a temporary financial tool that will help you improve your credit to later gain approval for a lower rate mortgage. A typical bridge loan scenario might look something like this:

Step 1: Rejection from a bank

Bridge loans are great for those who have been rejected by a bank because of bad credit or other reasons.

Step 2: Work with a Private Lender

To cover your immediate financing needs, you can obtain a mortgage loan from a private lender. You’ll then spend 6 months to a year making your loan payments on time. This will allow you to build your creditworthiness to later obtain financing from a B-lender, A-lender or bank and reduce your cost of borrowing.

Step 3: Get a Mortgage from a B-Lender

With an improved credit history you will be able to refinance your mortgage loan with a B-lender, typically with a much lower interest rate. Again you’ll work to improve your credit further with the goal of gaining approval from a bank/A-lender in the future.

Step 4: Finally, Get a Mortgage from a Bank

The final step and the main goal of a bridge loan is to improve your credit enough so that you can get a loan from a bank at an even lower interest rate.  

When Can a Bridge Loan Work for you?

Mortgages from private lenders, in the form of bridge loans and short term mortgage financing, are commonly used tools for a variety of different circumstances. These can include (but are not limited to):

  1. Loan Rejections. If you continue to be rejected by your bank because of credit issues, a bridge loan will help you work to correct those issues while still getting the money you need.
  2. Late Payments, 60 Day Notice and Notice of Default. A bridge loan can help you clear your debts and work towards a brighter financial future.
  3. Unpaid Income Tax Bills. If you’ve received a tax bill from Canada Revenue Agency (CRA) or Revenu Québec and don’t have the money to cover it, get in contact with us as soon as possible.
  4. Business Owners. Are you a business owner that’s having trouble getting the financing you need? You can obtain alternative forms of financing by leveraging your property, often at rates lower than typical business loans.
  5. Debt Consolidation. A bridge loan is a great way to consolidate any high interest credit card debt or personal debt you might have – while building a stronger credit history.
  6. Consumer Proposals. If you’re currently in the process or have already filed for a consumer proposal, a private mortgage lender can work with your trustee to shorten your payment period.
  7. Mortgages. If you currently have a lien on your home because of specific debt issues consider discussing a customized mortgage solution with a private lender.

Want More Information?

If you think a bridge loan, short term mortgage financing or a mortgage from a private lender might be a good solution for your current situation, then submit a request to speak with a private mortgage specialist today. Applying is easy, fast and free.