Ontario mortgage help

Bridge financing in Ontario

Bridge financing is short-term funding for a timing gap between a purchase closing and the availability of sale proceeds. Approval, security, cost, and maximum timing vary by lender.

Reviewed September 1, 2026Published by Ontario Mortgage HelpHow we review

What to do first

  1. Map the sale and purchase closing dates and calculate the exact cash shortfall for the purchase closing.

  2. Provide both purchase and sale agreements and ask the lender which sale conditions must be satisfied.

  3. Request the interest rate, administration fee, legal requirements, security, maximum term, and repayment mechanics in writing.

  4. Prepare a fallback plan for a delayed closing, failed sale, reduced sale proceeds, or an ineligible transaction.

Important considerations

It solves timing, not affordabilityBridge financing does not replace the mortgage approval or create additional sale equity. It temporarily advances funds expected from another transaction.

The sale must meet lender requirementsLenders may require a firm sale, minimum equity, specific closing timing, and legal direction for repayment from sale proceeds.

Delay risk mattersIf the sale closing is delayed or fails, interest and other costs may continue while both property obligations remain.

Official sources

Buying a homeFinancial Consumer Agency of CanadaChoosing a mortgage that is right for youFinancial Consumer Agency of CanadaShopping for a mortgageFinancial Services Regulatory Authority of Ontario

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