Bridge Loans
What are Bridge Loans?
Bridge loans, also known as "bridge financing" or "bridge mortgages," are short-term loans designed to provide temporary financing to bridge the gap between the purchase of a new property and the sale of an existing property.
These loans offer a flexible solution to borrowers who need immediate funds to facilitate a smooth transition in their real estate transactions.
Who Is Eligible for Bridge Loans?
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Bridge loans are a type of short-term financing that cater to buyers who find themselves in the transitional phase of selling their current property while simultaneously purchasing a new one. These loans act as a "bridge" to cover the financial gap between the sale of the existing property and the purchase of a new one.
Features
Short-Term Loan
Bridge loans have a relatively short duration, typically ranging up to a year or 18 months.
Fast Approval and Funding
Bridge loans are designed to provide quick access to funds, allowing borrowers to move forward with their property purchase while awaiting the sale of their existing property.
Interest-Only Payments
During the bridge loan period, borrowers may only be required to make interest payments. The principal amount is usually repaid in full when the existing property is sold.
