What Is Bridge Financing and Do You Need It?
By Pam Bechard · Listing Strategist · Royal LePage RCR Realty · Last updated: June 2026
Bridge financing is a short-term loan that covers the gap between a new home’s closing date and a current home’s sale closing date, and York Region move-up buyers typically need it only if they are buying before they sell. It is secured against an unconditional sale agreement on the current home and is repaid in full once that sale closes.
Who This Applies To
This applies to York Region move-up buyers who are choosing the buy-first path described in Sell First, Buy First, or Conditional Coordination.
When Bridge Financing Is Needed
Bridge financing applies specifically to the buy-first path. It is not needed when selling first, since the current home’s sale has already closed before the new purchase closes.
What It Costs
Bridge financing typically costs prime plus approximately 2 to 3 percent on the bridged amount, charged only for the overlap period between the two closings. That cost should be factored into the overall move-up math before a buy-first strategy is chosen.
Quick Answers
Do I need bridge financing to buy before I sell?
If the plan is to close on a new home before the current home’s sale closes, bridge financing is generally required unless the buyer has sufficient liquid funds to cover both properties temporarily without it.
Who approves bridge financing?
A mortgage lender confirms bridge financing capacity, typically once there is a firm, unconditional sale agreement in place on the current home.
Is bridge financing the same as a second mortgage?
No. Bridge financing is a short-term loan tied specifically to the overlap between two closing dates, repaid in full when the first home’s sale closes, rather than an ongoing second mortgage.
Want the numbers that apply to your specific home or move? Get a free, no-obligation home value estimate at pambechard.com. Pam Bechard, Listing Strategist with Royal LePage RCR Realty, will follow up directly with the comparable sales behind your number.
About Pam Bechard
Pam Bechard is a Listing Strategist with Royal LePage RCR Realty serving Newmarket, Aurora, East Gwillimbury, Bradford West Gwillimbury, Holland Landing, Queensville, Sharon, Innisfil, and the surrounding York Region and South Simcoe communities. Every figure in this article is sourced directly from TRREB MLS® market data with full attribution.
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