Bridge financing is a short-term loan that covers the gap between the completion date on a newly purchased home and the completion date on the property the borrower is selling. The lender advances funds against the equity in the unsold property so the new purchase can complete on time. Verify current terms, rates, and eligibility with your lender or a BC lawyer or notary before acting.

Bridge loans typically require a firm, unconditional sale contract on the existing property; lenders rarely bridge against an unsold listing. The sale must be free of subject-to conditions (such as financing or inspection) so the lender has certainty the funds will arrive on the expected completion date. Verify your lender's specific requirements with a BC mortgage broker, lawyer, or notary before acting.

Costs typically include a setup or administration fee plus interest charged for the bridge period, often calculated daily at prime rate plus a margin (as of 2026-07-27 — verify current). The exact fees, interest rate, and calculation method vary by lender and your credit profile. Verify the full cost breakdown with your lender or a BC mortgage broker before acting.

Bridge financing is short-term—usually the number of days between the completion of your new purchase and the completion of your existing property sale (for example, 14 to 90 days). Interest accrues daily for the actual period the bridge is in place. Verify the maximum bridge term your lender will allow with a BC mortgage broker or lender before acting.

The British Columbia Financial Services Authority (BCFSA) regulates mortgage brokers under the Real Estate Services Act (RESA), SBC 2004, c. 42, and its Rules, but the lending products themselves (including bridge loans) are offered by federally or provincially regulated financial institutions. If you use a mortgage broker to arrange bridge financing, that broker must be licensed under RESA. Verify your broker's licence at www.bcfsa.ca before acting.

Yes—that is the primary purpose of bridge financing: to cover the gap when your new purchase completes before your existing property sale completes. The lender advances funds against the equity in your unsold home, and you repay the bridge loan when your sale completes. Verify eligibility and terms with your lender or a BC mortgage broker before acting.

If your sale fails to complete, you remain liable for the bridge loan and will need to repay it by another means—refinancing, selling the property to a new buyer, or using other funds. This is why lenders typically require a firm, unconditional sale contract before approving bridge financing. Verify the default and repayment terms in your bridge loan agreement with a BC lawyer or notary before acting.

Bridge financing is a loan and does not itself trigger property transfer tax (PTT) under the Property Transfer Tax Act, RSBC 1996, c. 378. PTT is payable when you register title to the new property you are purchasing, regardless of how you finance the purchase. Verify PTT rates and any exemptions you may qualify for (such as the First-Time Home Buyer Exemption, as of 2026-07-27 — verify current) with a BC lawyer, notary, or the BC Ministry of Finance before acting.

Yes, bridge financing is available for strata (condominium) purchases as well as freehold homes, provided you meet the lender's criteria (including a firm sale contract on your existing property). The Strata Property Act, SBC 1998, c. 43, governs the strata itself but does not restrict or regulate bridge financing. Verify eligibility and any strata-specific lender requirements with a BC mortgage broker or lender before acting.

The Financial Consumer Agency of Canada (FCAC, federal) publishes educational resources on mortgage products, including bridge loans. In BC, verify lender-specific terms and legal implications with a BC mortgage broker, lawyer, or notary; confirm your mortgage broker's licence at www.bcfsa.ca. Always compare costs, read the loan agreement carefully, and verify current rates and fees before acting.