Bridge Financing in Edmonton, AB
Bridge financing in Edmonton lets you close on your next home with the equity in your current one, even though your own sale won't fund for a few more weeks. On a move from an older home in Highlands or Ritchie to newer construction in Windermere or Keswick, the builder sets the possession date and your sale has to fit around it. We build the bridge around that date, and you'll get milestone updates and a same-business-day reply from your own advisor under our Stay in the Know guarantee.
Which penalties will we face when we sell?
If your term still has time left, paying the mortgage off with the sale proceeds usually triggers a prepayment penalty. Variable rate penalties are often smaller, while fixed rate penalties at some lenders depend on how far rates have moved since you signed. Ask your lender for a written payout statement before you sign the listing agreement, because that number tells you whether porting is worth the trouble.
Can we fix up our place, sell it and buy something bigger?
Yes, though the order of the steps changes how much equity you'll have for the next down payment. A mortgage refinance in Edmonton can fund the work up to 80% of your home's value, but breaking your term early can cost a penalty, so weigh that against the extra sale price first. Some lenders can also add a home equity line of credit, with the line of credit part capped at 65% of the home's value.
How do we time the purchase and the sale?
Most lenders cap a bridge at a few months, often 90 to 120 days, so aim for your sale to close within that window after the possession date. Lenders generally want a firm, unconditional sale before they approve the bridge, which means your Strathcona or Glenora listing needs an accepted offer with conditions removed. The bridge rate runs higher than a mortgage rate and some lenders charge a setup fee, so every week you cut from the gap saves interest. Update your mortgage pre-approval in Edmonton as soon as the sale firms.
Book a free call about your Edmonton move
Send us the builder's possession date and your listing plans, and we'll build the bridge around them. Book a free call this week.
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
Do we have to liquidate our assets to bridge?
You usually won't, since the bridge is secured by your home's equity and your savings can stay invested. A lender may still ask for statements that show you can cover legal fees and adjustments.
What closing costs should we plan for in Alberta?
Alberta has no land transfer tax, so the main government cost is Land Titles registration, about $550 to register the transfer on a $500,000 home, plus a fee based on your mortgage amount. Your lawyer's fees and property tax adjustments come on top.