Bridge Loan Mississauga
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What are Bridge Loans?
As the name suggests, bridge loans are short-term loans that allow buyers to bridge the gap between selling their current house and buying a new one. This method of financing is used when you want to get your dream house before the sale of your current property is closed. To be eligible for a Bridge Loan in Mississauga, you must have a concrete sale agreement on your existing property or sell the home with more than enough equity to pay off the loan and interest accrued.
While many banks offer bridge financing, it is only for the down payment, and individuals are required to repay when the home sells. This is useful in scenarios where you plan on having a gap before closing. It is not helpful when you expect your old property to be sold after closing the new house. You can deposit your dream home even if most of your built-up equity is tied to your current property.
To find out more details about bridge loans, speak to our team today.
What is a Debt Consolidation Mortgage?
Debt consolidation mortgage is a type of financing that consolidates multiple high-interest loans into one single easy-to-make payment. It is long-term, allowing people to pay off various debts simultaneously. Once you have cleared your Debt, you are only left with paying one loan instead of many. This is an excellent option if you are riddled with credit card debt. Debt consolidation is a fantastic way to streamline your finances.
If you are looking for debt consolidation in Mississauga, please do not hesitate to contact our team today.
How can Bridge Loans be utilized for business?
If you are a business and require quick funds but need more patience for long-term financing, then a bridge loan is the best temporary alternative. It can help cover rent, payroll, utilities, inventory costs and much more. It is a fantastic option while you wait for long-term financing. For further enquiries, talk to our team today.
What is Bridge Financing?
Often, bridge financing will not pay the cost of acquiring a mortgage until you sell the house. These types of financing provide borrowers with short term mortgage funding necessary for the sale of the new home and can be paid off upon closing. Unlike bank bridge financing, banks will usually give the down payment for the purchase of homes which you can repurchase after selling them. Although it’s helpful to have gaps between closings, it won’t work in circumstances where you expect to see your house sold at a closing, but there was a gap in your offer that didn’t exist.
How do Bridge Loans work in real estate?
A bridge loan is an ideal tool to gain access to funds by using the built-up equity of your current property. Using it as collateral for the loan, it can be used towards purchasing your dream house. This is effective when there is a delay between selling one property and buying another, as the bridge loan gives them the money they need to help close the deal quickly. This loan is provided to borrowers with a good credit score and low debt-to-income ratio.
To summarize, a bridge loan bridges two mortgages on your two houses or commercial properties, which gives you freedom when waiting for your current real estate property to sell. However, bridge loans have some risks to consider. Because of this, lenders usually offer bridge loans for real estate at most 80% of the combined value of the two loans or properties. This leaves the borrower with a substantial amount of equity or a large amount of savings.
Here at Harpreet Puri Mortgage Agent, our team of experienced mortgage professionals have the knowledge and skills to offer bridge loans even in the most complex situations. We can help you get approved in a few days if you need to secure a bridge loan immediately. If your income, credit or loan-to-value is an issue, call our team today to know your options.
How to secure a bridge loan?
Unless you have a large amount of room within your debt servicing ratios, it is more than likely that your mortgage lender will only approve the new mortgage with the current one being paid out. In this situation, you will need to find a flexible lender like Harpreet Puri Mortgage Agent, who understands your requirements and knows that you need more time to sell your property.
With years of experience in the mortgage industry, we work with several private lenders open to financing despite the challenges mentioned above. By utilizing the built-up equity in your current home, they will offer a secured mortgage to new and existing homes to bring the overall home loan to a much better level. Once your home sells and the private mortgage has been paid off, you will obtain traditional financing with your bank.
Based on the circumstances, increasing the bridge loan amount may be possible to cover the payments for many months. This will help make things more manageable till the house is sold. This, however, takes proper planning and understanding that you have two mortgage payments to make until the property sells.
Why work with Harpreet Puri Mortgage Agent?
The simple reason is that we put forward our clients’ needs and concerns. Being one of the most trusted mortgage agents in Mississauga, we have years of experience in various mortgages, including bridge loans. Our level of care ensures all our clients receive the necessary information to make a well-informed financial decision.
If you seek funding to purchase property while you wait for your existing house to be sold, please do not hesitate to call our team. We will do all the heavy lifting and interact with our vast network of lenders to identify the best rates and terms based on your current financial situation. For further enquiries about bridge loans, get in touch.
Schedule an appointment with Harpreet Puri Mortgage Agent today
Do you need bridge financing? There may be a way to rescue the situation to allow the purchase to go through and give you time to sell your house. Contact Harpreet Puri Mortgage Agent today.
Share details of your situation with us. We will perform a comprehensive review to see what options you have. We have experience in these situations and can structure things to ensure you enjoy your new home.
Is it a good idea to get a Bridging Loan?
Bridge loans are a suitable short-term choice to help others get things right. The most popular way of generating short-term capital is borrowing quickly when the money is no longer accessible through conventional borrowings.
Under what scenario would I need Bridge Financing?
Below is an example where bridging finance can be useful. You sell your house for an investment in another house. However, unlike a traditional sale/purchase combination that closes on the same day, you choose to make your purchase close NOW. You’ll be redirected to your place in between transactions so you’ll have more time to relocate your furniture to other locations or complete smaller renovations.
Need A Bridge Loan? Get Approved Today!
Bridge Loan is a short-term lending solution for homeowners & property owners who are looking to buy a house in the next couple of years. Clover offers bridge-backed loan solutions for borrowers with existing properties who do not have any of these. You as a homeowner will often purchase and move countless properties throughout your lifetime.
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