Bridge financing is a short-term loan used to cover financial gaps between the purchase of a new property and the sale of an existing property.
When someone wants to purchase a new property but has not yet sold their existing property, they may apply for a bridge loan from a lender, such as a bank or mortgage broker. The lender will assess the borrower's financial situation and may approve the loan based on the value of the borrower's existing property and the expected sale price.
The bridge loan is typically secured by the borrower's existing property and is usually repaid when the property is sold. The loan may have a higher interest rate and fees than a traditional mortgage, due to the short-term nature of the loan and the risk involved.
It can also be used by investors who want to take advantage of a good real estate deal but don't have the funds available at the time.
It is important to note that bridge financing should only be used as a short-term solution, as the higher interest rates and fees can quickly add up. Borrowers should also carefully consider their ability to repay the loan and should have a solid plan in place to sell their existing property within a reasonable timeframe.
Renting an apartment in Ontario can be quite an expensive undertaking, leaving many residents wondering why they must shell out such hefty sums just to secure a place to live. For newcomers to the area, the high cost of rent can be quite shocking.
In this blog post, the expert at Nicole Tracey Mortgages will delve into the factors that contribute to the costly rental market in Ontario and how they affect tenants and landlords alike. By understanding these factors, you'll be better equipped to navigate the rental landscape and make informed decisions for your housing needs.
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