Bridge Financing in Calgary, AB
Bridge financing in Calgary uses the equity in the home you're selling to fund the down payment on your next one, so you can take possession before your sale money arrives. If you're selling a condo in the Beltline or Kensington to move out to Mahogany or Cranston, the new home can close before the condo buyer's deal does, so we set up the bridge and the new mortgage together. Under our Rate Look Back guarantee we check rates every business day until closing, and we re-lock you at no cost if a lower one opens.
Should we list at our price first and shop after?
Listing first is a sound plan, because most lenders won't approve a bridge without a firm, unconditional sale on your current home. Your sale price, minus the mortgage payout and selling costs, tells us how much equity the bridge can advance. If the first price doesn't bring an offer, we'll rerun the numbers at the lower figure the same day, so you can see what each price change does to your next down payment.
How does the bridge loan cover my down payment?
The lender advances your equity as a short loan, usually for a few months and often 90 to 120 days, and it's repaid when your sale closes. Bridge loans tend to carry a higher rate than mortgages, and some lenders charge a setup fee, so keep the gap between your 2 closings short. Alberta has no land transfer tax, though you'll still pay Land Titles registration fees of about $550 on a $500,000 home. Have your mortgage pre-approval in Calgary written with the bridge included before you make an offer in Seton or Tuscany.
What happens to my current mortgage when I sell?
You can pay it off and take the penalty, or port it to the new home and keep its rate and term. Most lenders allow a port within a set window between closings, and if the new place costs more, a port and blend adds the extra at a current rate. You'll qualify on the full new amount at the greater of your contract rate plus 2% or 5.25%. If your term ends within the year, ask about an early mortgage renewal in Calgary into a portable or open term, which can shrink the penalty when you sell.
Get your Calgary bridge plan on a free call
Bring your listing details and the home you want next, and we'll show you the bridge, the penalty and the purchase numbers side by side. Book a free call with us.
Flow Mortgage Co. arranges mortgages through BRX Mortgage Inc. (operating as BRX Mortgage), licensed by the Real Estate Council of Alberta to deal in mortgages.
Frequently asked questions
If we port and later have to break it, what fees are we looking at?
The ported mortgage keeps its original term, so breaking it later means a prepayment penalty worked out the way it would have been at your sale. Ask your lender to show the penalty method on paper before you port, because most lenders treat fixed and variable terms differently.
Do we need to cash in investments to make the bridge work?
Usually you don't, because the bridge is secured by the equity in your Calgary home. Keeping your investments in place also leaves you a cushion if the sale closing moves by a few days.