Animated explainer · 1:45
Bridge Financing Explained: Buying Before Your Sale Closes
How a bridge loan covers the gap between closing on your purchase and receiving the money from your sale — and what it costs per day.
Watch: Bridge financing in 1:45
The short version
- Bridge financing covers the days or weeks between your purchase closing and your sale closing.
- Banks bridge when the sale is firm and they hold the new mortgage; a private bridge covers everything else.
- Interest accrues daily, so short bridges are cheaper than most people expect — compare it to the cost of cutting your asking price.
- Always plan for a delayed or collapsed sale before you commit to the purchase date.
Full video script, scene by scene
Narration, on-screen text and animation direction exactly as produced.
Scene 1 · 0:00–0:10
Cold open: two dates on a calendar
Narration: You bought a new home that closes on the fifteenth. Your old home closes on the thirtieth. For fifteen days you need money you do not have yet. That gap is what bridge financing is for.
On screen: Purchase closes. Sale closes later. Mind the gap.
Animation: Two circled dates on a wall calendar drift apart, leaving a visible gap. A small figure stands on one date holding keys and looks across the gap.
Scene 2 · 0:10–0:26
What a bridge loan is
Narration: A bridge loan is short-term interim financing secured against your property. It advances the equity that is already committed to you in a firm sale, so you can complete your purchase before the sale money arrives. It is repaid in full on the day your sale closes.
On screen: Bridge = short-term interim financing, repaid on sale closing
Animation: A literal bridge builds itself between the two dates, with the deposit and down payment travelling across it as coins.
Scene 3 · 0:26–0:48
Bank bridge versus private bridge
Narration: There are two kinds. A bank or credit union will bridge you when your sale is firm and unconditional, and you are already getting your new mortgage from them. It is the cheaper route. If your sale is not firm, if the closing gap is months rather than days, if you are self-employed, or if you need more than the bank will advance, a private bridge steps in. It costs more, and it does not require the certainty a bank does.
On screen: Firm sale → bank bridge. No firm sale → private bridge.
Animation: Two lanes across the bridge. The bank lane has a gate labelled Firm sale required. The private lane is open, with a small toll booth.
Scene 4 · 0:48–1:10
What it actually costs
Narration: Cost has two parts. Interest accrues daily on the amount you draw, so a short bridge costs less than people fear. Then there are fixed costs: an administration fee, legal fees, and registration if the loan is registered on title. Compare that against the alternative, which is usually dropping your asking price to force a faster sale. A few weeks of bridge interest is often far cheaper than a price cut.
On screen: Daily interest + admin + legals — usually less than a price cut
Animation: A meter ticks up day by day. Beside it three fixed cards appear: administration fee, legal fees, registration. The meter total stays visibly small next to a card labelled Rushed sale price cut.
Scene 5 · 1:10–1:32
Where bridges go wrong
Narration: Bridges fail for one reason: the sale does not close. A buyer's financing falls through, or a condition survives past the date everyone assumed. So build in a buffer, keep the bridge long enough to absorb a delay, and know in advance what happens if the sale collapses entirely — because at that point you own two properties and the bridge needs to convert into something longer term.
On screen: Ask: what happens if my sale doesn't close?
Animation: The bridge wobbles as a sale date slides backwards. A support beam labelled Buffer slides into place and steadies it.
Scene 6 · 1:32–1:45
Close
Narration: Done properly, bridge financing is boring in the best way. It lets you buy the right home on the right day, move once, and sell on your terms instead of the calendar's.
On screen: Move once. Sell on your terms. The Juneja Group — FSRA #10874
Animation: Both dates on the calendar meet, the keys hand across, the bridge dissolves into a clean line. Logo and licensing lock-up.
Questions people ask about bridge financing
Educational information only — subject to approval
This website provides general educational information only and does not constitute financial, mortgage, legal, or tax advice. All rates, products, scenarios, and calculator results are illustrative and subject to lender approval, credit qualification, property valuation, and current market conditions. Mortgages are arranged by Saminder Juneja, Mortgage Broker — Mortgage Centre Canada / Get A Better Mortgage Inc. (FSRA #10874). Nothing on this site constitutes an offer to lend.