Bridge Loans.
Buy before you sell. Private bridge loans across Ontario for residential, commercial and industrial real estate – even if your existing property isn’t sold or listed.
What is a bridge loan?
Private Real Estate Bridge Financing in Ontario.
A bridge loan, also called bridge financing or a bridge mortgage, is short-term financing that helps you purchase a property before the sale of an existing property closes. When your equity is tied up in real estate you already own, a private bridge loan can provide funds toward the down payment, purchase balance or closing costs of your next acquisition.
DV Capital provides private bridge mortgage financing throughout Ontario for homeowners, real estate investors and business owners purchasing residential, commercial or industrial properties. We consider requests where the existing property is sold firm, listed but unsold, or not yet listed for sale.
Many traditional bridge loan programs require a firm sale agreement and a confirmed closing date for the existing property. That can leave a financing gap when you’ve found your next property but still need time to renovate, prepare, list or sell the property you own. DV Capital assesses these situations based on available equity, property values, existing mortgages, closing timelines and the proposed repayment strategy.
Depending on the transaction, a bridge mortgage may be secured against the existing property, the property being purchased or both. Where multiple properties secure the same loan, the arrangement is commonly called a blanket or inter-alia mortgage. This structure can allow equity across the properties to support the financing needed for the purchase.
Repayment typically comes from the net proceeds of the existing property’s sale, after its prior mortgages and selling costs are paid. Where those proceeds will not fully repay the bridge loan, we assess how the remaining balance will be addressed, such as through longer-term financing against the retained property.
Whether you’re moving to a new home, downsizing or acquiring an investment or business property, contact DV Capital before your closing deadline. Your existing property does not have to be sold or listed for us to review your private bridge loan request.
Types of Bridge Loan Mortgages.
Private Bridge Loans Before Your Property Sells.
The sale status of your existing property affects how bridge financing is assessed and structured. DV Capital considers private bridge mortgage requests across Ontario in each of the following situations.
Existing Property Sold Firm: Your existing property has sold under a firm agreement, but the sale closes after your new purchase. A bridge loan can help cover the timing gap by providing access to equity before the sale proceeds become available. The confirmed sale price and scheduled closing date give lenders the highest level of confidence among these scenarios. However, there remains a risk that the buyer defaults on purchasing your existing property while you remain obligated to close on your new purchase. Traditional bridge financing may be available in this situation, while private financing can address requests that fall outside a particular lender’s criteria or timeline.
Existing Property Listed but Not Sold Firm: Your property is listed for sale but has not received an acceptable offer, or an accepted offer remains conditional. Private bridge financing may allow you to complete the new purchase while continuing the sale process. DV Capital considers the property’s market value, asking price, listing history, available equity and expected selling period, together with the funds needed to close on the purchase and the equity across both properties.
Existing Property Not Yet Listed: You’ve found your next property but have not listed your current one. You may want to move first, complete renovations or prepare your existing property for sale without coordinating two closings at once. DV Capital considers private bridge loans in these circumstances without requiring a firm sale or an active listing before reviewing the request. We assess the proposed listing timeline, expected sale proceeds, available equity and repayment plan.
Depending on the transaction, it may even be possible to secure financing against one property. The mortgage amount, term and costs reflect the underlying cost of private funds, the property security, equity, anticipated repayment timing and circumstances.
At DV Capital, we specialize in private bridge mortgage loans across Ontario, providing fast, flexible and tailored financing solutions with less red tape. Whether your property is sold firm, listed or not yet on the market, contact us with the property details and purchase closing date. We’ll review your bridge financing needs, discuss the appropriate loan structure and explain the next steps.
How does a bridge loan work?
Private Bridge Mortgage Financing in Ontario.
Imagine you own a home in Toronto and have agreed to purchase a property in Muskoka, with closing scheduled in 90 days. You plan to renovate and sell your Toronto home before moving, using the sale proceeds to complete your new purchase.
Renovations take longer than expected, delaying your listing. With the Muskoka closing approaching, your Toronto property has not sold. You have substantial equity in your existing home, but the sale proceeds will not be available in time, and your savings are insufficient to complete the purchase.
A private bridge mortgage can help address this timing gap. DV Capital assesses the value and existing mortgage balances on your Toronto home, the purchase price and value of the Muskoka property, and the funds required to close.
Depending on the available equity and transaction details, financing may cover up to 100% of the new property’s purchase price by using both properties as security. This could involve a first mortgage on the Muskoka property and a second mortgage on your Toronto home, behind its existing first mortgage, structured together as a blanket mortgage.
Once your Toronto property sells, the net proceeds, after paying off the existing mortgage and applicable selling and closing costs, pay down or pay off the bridge loan. If those proceeds are insufficient to repay the bridge mortgage in full, the remaining balance must be addressed through an agreed repayment or refinancing arrangement. With the lender’s agreement, a partial discharge releases your Toronto property from the blanket mortgage, allowing the sale to close, while the mortgage remains registered against your Muskoka property to secure the outstanding balance.
Whether you’re moving within Toronto, purchasing in Muskoka or relocating elsewhere in Ontario, speak with DV Capital about private bridge financing that allows you to purchase before your existing property sells.
Bridge Loan Example: Real Estate Bridge Financing in action.
Private Bridge Loan Lender.
Existing Property (Toronto Home):
Location: Toronto, Ontario
Anticipated Sale Price: $2,000,000
Existing First Mortgage: $500,000
New Purchase Property (Muskoka Home):
Location: Muskoka, Ontario
Purchase Price: $1,500,000
Deposit Paid to Seller: $50,000
Amount Needed to Close: $1,450,000
Bridge Loan Provided: $1,450,000
Bridge Loan Repayment:
Sale Proceeds from the Toronto Home: $1,880,000 (Net Realtor Fees + HST)
Bridge Loan Discharged: $1,450,000
Net Equity After Closing: ~$437,000
In this bridge loan mortgage example, the client had significant home equity in their existing Toronto property but needed access to that equity to close on their new Muskoka home purchase; since the Toronto home had not yet sold, DV Capital arranged a bridge loan mortgage for $1,450,000, where a first mortgage was registered on the Muskoka property and a second mortgage was registered against the Toronto property to cross-collateralize the bridge loan, and once the Toronto home sold, the bridge loan was fully repaid from the sale proceeds and both mortgage registrations (on the Muskoka and Toronto homes) were discharged, allowing the client to move into their new Muskoka home mortgage-free and with over $400,000 in net proceeds.
How is a bridge loan repaid?
Can I Get a bridge loan if my house isn't sold?
When your equity is tied up in your current property and you need to close on a new purchase, a bridge loan provides short-term funding. But how do you pay it back? Let’s break it down. Once your existing property sells, the net sale proceeds, after paying off any existing encumbrances (i.e., mortgages), real estate commissions, and applicable taxes, are used to fully repay the bridge loan. Typically, the entire net amount goes to clear the outstanding balance. However, if the proceeds fall short of the full amount, the lender may issue a partial discharge: this releases the lender’s mortgage charge from the sold property but keeps it in place against the new purchase. As soon as additional funds are available, the balance can then be cleared. Because bridge loans carry higher interest rates than traditional mortgages due to their short-term nature and elevated risk, they are specifically designed for temporary financing solutions. If you need a fast, flexible bridge loan to acquire residential, commercial, or industrial real estate in Ontario. DV Capital offers tailored short-term financing options to help you move forward with confidence.
How to apply for a bridge Loan?
Private Mortgage Bridge Loan Lenders.
At DV Capital, we make the bridge loan process fast, simple, and tailored to your needs, whether you’re a homeowner looking to buy a new property before selling your current one, or an investor managing multiple real estate transactions, our private bridge loan solutions are designed to help you move forward without delays by leveraging the equity in your existing property to secure the funds needed for your new purchase, even if your current home isn’t yet sold or listed for sale, and while traditional lenders often require a firm sale agreement in place to issue a bridge loan, DV Capital specializes in flexible private bridge mortgage financing that accommodates more complex situations, including cases where your property is only listed, or not yet listed at all, and we assess your equity, closing timelines, property values, and intended repayment strategy to determine eligibility, which is often based on your ability to repay the loan once your existing property sells or refinances; our team will guide you through a simplified documentation process, typically requiring property details, mortgage statements, purchase and sale agreements, and closing timelines to underwrite the loan efficiently, and to get started, you can complete our secure online bridge loan application with just a few key details, we will assess your bridge loan requirements and structure a customized bridge loan to meet your unique needs, whether the loan involves residential, commercial, or mixed-use property in Ontario, DV Capital delivers fast approvals, flexible terms, and expert support designed to bridge the financing gap with confidence and ease, so if you’re navigating the purchase of a property before selling your current one and need capital quickly, apply for a bridge loan with DV Capital today and take the next step forward without delays.
