We've sold our house and looking at buying a house with an earlier closing date. Where can we get a short-term financing? We will not be carrying a mortgage once we get the net proceed from the sale of our house.

Hi,
I can arrange short term open financing.
Very simple & straightforward.
Call me anytime to talk details.
Cheers

Peter K. Yeung AMP-BROKER
Accredited Mortgage Professional
Voted “Top Mortgage Broker” by Metro News
Broker # M08000585 - Brokerage # 10464
416-466-0033
pyeung@rmabroker.ca
Real Mortgage Associates Inc.
peter@ariesenterprise.com
www.ariesenterprise.com

Hi,
The best solution for this is to attain a mortgage that is fully open so that you will not have to pay interest penalties.
You can also consider attaining a secured line of credit on the new purchase and pay interest only until you attain the proceeds from the sale of your current property.
Give me a call directly or email me for further details.
Make sure that you ask me about RBC HomeLine Plan.

Good question,
Bridge financing is the name for a temporary mortgage between buying and selling. The cheapest way to do this in your case would be to open a secured line of credit on the house you own. Your bank may not like that your home has a pending sale, so the second best option is the open mortgage spoken of above. Depending on when you require the money, you could put an open mortgage on the new property or the home you are selling.
A mortgage broker can help you through all the options and decide which is best for you.

Best Regards
Steve

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It all depends on how much equity is in your current home. It sounds like there is a fair amount. You might want to consider a secured line of credit on the new home you are purchasing up to 80% of the value. The down payment can possibly come from an unsecured line of credit that you may already have access to. Unlike the banks, a Mortgage Broker can get you a line of credit rate as low as Prime +.25% = 3.25% It's completely open and available in the future should you needs funds for investment purposes, buying a vehicle, or perhaps paying for a child's education.

Sean Binkley
Mortgage Broker
Sean@531Home.com

The right solution will depend upon more specific information, i.e the timing of the purchase and sale.
If you have an unconditional sale of your home, bridge financing in the form of a demand loan may be another option. This would require having a letter of direction for the proceeds of the sale acknowledged by your lawyer. The interest rate on the short-term loan will be higher than an Open mortgage rate, however you will probably save on legal fees.

Bridge financing is available for this type of transaction. Unfortunately, because your house is sold, no bank will give you a line of credit. Your best alternative is to seek private lending that can accommodate your short term loan needs. I recently arranged a short term bridge loan for a home that was on MLS. The client needed her equity by a certain date. As the unit was not sold, I arranged short term financing for her with completely open terms and at a competitive rate. Her home sold a few weeks later and only had to pay 1 month interest with no additional penalty. If seeking private mortgage financing, be aware of commitment fees and additional fees that broker and agents may charge (I don't) in addition to the lender fee. If your credit and income are in order, you can find a very competitive rate with minimal commitment fees.