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Bridge and Interim Financing- What is the difference?

Bridge and Interim Financing- What is the difference?

Have you wondered what the difference is between Bridge and Interim Financing?  It is a question that often comes up when clients are buying a home.

I asked one of the mobile mortgage specialists that I work with to answer this question.   Kim Ross, of TD Canada Trust in Nanaimo explains the difference as follows:

Bridge and Interim Financing- What is the difference?

Bridge and Interim Financing- What is the difference?1.  Bridge Financing:  Clients must have Firm & Binding Agreements for both Sale of current home and purchase of new home   this is used when the completion dates do not match in that the client will be purchasing the new home prior to the current home being sold.  We will lend the sale proceeds to the client to allow them the down payment to purchase the home before they receive their sale proceeds.   

2.   Interim Financing:  Clients have purchased a new home but 'do not' have a firm and binding sale on current home. We will complete a home equity line of credit registered against current home to provide the down payment for the new home.  Clients must be able to qualify for both this line of credit and the new mortgage on the purchased home as we have no guaranteed payout time.

As a professional Realtor one of the services I offer clients is that I have a list of suppliers that they can choose from when they are purchasing or selling a home.  This list includes mortgage specialists like Kim.  Please contact me for this list.

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