Bridge Loan Brampton

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Quick Approval

1 - 2 days

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Online Funding

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Apply For Bridge Loan

    Min $200,000

    Min $25,000

    Bridge Loan Brampton

    It can be overwhelming when you are in financial trouble. Sometimes, your loan application can get rejected because your credit history is poor, or you have an account of not efficiently managing your finances. A bridge loan can be a temporary and quick solution to get the financing you need.

    What is a Bridge Loans?

    A bridge loan is a short-term loan that offers the borrowers a temporary financial solution to utilize a portion of the entire down payment sum to purchase a house. From the borrower’s perspective, they essentially transfer the available built-up equity from one home to another with a bridge loan. An ideal situation for which a bridge loan would be helpful is at the closing date for the purchase of the new property occurs right before the closing date for the sale of your existing home. The assumption is that the down payment money has come from the sale of the current house. It is not only people but also major corporations that can apply for a bridge financing. These loans can be customized to suit specific requirements.
    The mortgage agents at Harpreet Puri can assist you with a bridge loan in Brampton. To successfully apply for a bridge financing, two firm offers have to be in place, one for the sale of the existing home and the other for purchasing the new property. It would help if you were wary that there are chances for the deals to fall apart still. For the lender to approve the loan request, they need the condition mentioned above to be fulfilled. With years of experience in the trade, we have the expertise to provide our clients with great value in need of a bridge loan in Brampton. Contact us today for more information.

    How Does a Bridge Loan Work?

    There are different ways a business or an individual can secure a bridge financing in Brampton. It depends on the credit history and income profile of the borrower. Suppose the person or company has a decent credit history and market position. However, if the organization is financially struggling and it desperately requires short-term financing, it will be difficult for them to secure a short-term loan. When deciding to take out a bridge loan, one must think twice as it leads to more financial burden in the long run. We offer bridge financing throughout Ontario. To apply for a bridge loan in Brampton or find out more details, contact the team at Harpreet Puri Mortgage Agent today.

    What is the Term of Bridge Financing?

    Bridge loans, as mentioned earlier, are short-term loans that an individual takes out to meet specific short-term financial requirements. They can be utilized by securing the working capital till the funding goes through. These types of loans are usually taken out for two or three weeks, and as part of approving the loan, the lender will require some form of collateral as security. Based on the borrower’s repayment capacity, the higher interest rates and the loan amount will be set. The borrower can get immediate access to funds to meet their short-term financial requirements. A bridge loan is often referred to as a swing loan or a gap financing loan. The loan period can be extended for up to twelve months. We can offer a great value for your need of bridge financing solutions in Brampton,

    Bridge Financing Vs a Traditional Loan

    Length of the loan term

    The interest in these loans is either fixed or varies based on the situation. Traditional loans are usually long-term, anywhere between ten to twenty years. On the other hand, a bridge financing usually lasts less than three years. The loans are mainly taken out to help organizations fund their working capital. Unlike a traditional loan, they are paid off very quickly.

    Loan interest rate

    Compared to traditional loans, bridge loans have a way higher interest rate. The reason for this is that the nature of the loan is short-term. The lender makes less on the loans if the term is short. Because traditional loans are for a more extended period, the lender does not worry too much about their margin, but it's the obvious "what's in it for me?" case.

    Several lenders

    While a traditional lender can provide a bridge loan like a bank or a credit union, it makes financial sense to get a bridge financing from a private lender. The borrower gets access to a comprehensive range of flexible options. Harpreet Puri has built a solid reputation with several private lenders in the Brampton region to help get the best rates and terms for the borrower. However, as mentioned above, for the loan to be secured, the lender will need some form of collateral from the borrower. One of the risks of a bridge financing is many borrowers misjudge the timing of paying, including how long they will need to carry the loan. It can also cause financial stress, ultimately leading to the borrower defaulting on their payments. Based on what the borrower decides to do, bridge and traditional loans have their purpose. There is no harm in borrowing by knowing the details of every loan to make the best decision possible.

    Advantages of bridge loans:

    Quick Access to Funds

    It can take anywhere between 24 – 48 hours to get a bridge financing approved, unlike a traditional mortgage which can take upwards of a month to get borrowed. When you apply for a traditional loan, you might need to submit a lot of documentation. With a bridge financing, the only thing you will need to submit as a proof is some form of collateral as security.

    No additional fees or hidden charges

    Even though the interest rates for bridge financing is high, you can still end up paying the loan in a few weeks, as the interest rate is controlled. The borrower does not need to be worried about the rising interest costs.

    Schedule an Appointment Today

    Our personalized care ensures all our clients receive the right information to make sound financial decisions. To find out more information on how to apply for a bridge financing in Brampton or to schedule an appointment, please do not hesitate to call Harpreet Puri Mortgage Agent.

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