You are looking to buy a new home. You find the perfect place but the seller wants a quick deal and there is no way you can sell your house in time. How can you get the money in time? Bridge financing could be the answer.
Bridge financing is a high interest short term loan designed to “bridge” gaps like this is your finances. In a home buying situation you will need to provide proof of offers on your current home and for your new home and you should be able to access 80% of the equity of your current property. This is used to buy the new home.
When the sale of your old home is complete you use the money to pay back the bridging loan and interest. Bridge loans can have high rates of interest but can be a useful financial tool.