What this calculator answers
When the home you are buying closes before the home you are selling, the down payment is tied up in your current home. Bridge financing is a short-term loan that covers the gap until your sale closes and the proceeds pay it off. This calculator estimates what that costs, based on the days between your two closing dates, the rate and any fees.
How the calculation works
- Days of bridge financing = sale closing date minus purchase closing date.
- Interest = bridge amount × annual rate × days ÷ 365, the simple daily interest most bridge loans use.
- Total cost = interest plus the lender fee plus any extra legal fees you enter.
- The tables show what happens if the sale closes a week, two weeks or a month later, and if the rate is one point higher or lower.
Assumptions and limits
- Lender policy: bridge financing is not offered by every lender. Most require a firm (unconditional) sale agreement on your current home, and the new mortgage usually has to be with the same lender. Limits on the amount and number of days vary.
- Your assumptions: the default rate is an example (an estimated prime of 4.70% plus about 2%), and the fee is an example. Neither is a quote.
- Interest is calculated as simple daily interest. Some lenders compound monthly or charge a minimum amount.
- If you have not sold yet, there is no firm sale to bridge. Other options, such as a home equity line of credit, have different costs and qualification.
Common questions
Do I need a firm sale to get bridge financing?
Usually, yes. Most lenders want an unconditional sale agreement so they know when and how the bridge will be repaid. Without one, you would be carrying two mortgages and need to qualify for both.
How much can I borrow on a bridge loan?
Usually up to the equity you will receive from your sale after the mortgage payout and selling costs. The sale proceeds calculator helps you estimate that number.
How long can a bridge loan last?
It depends on the lender. Many limit bridge financing to a few months, commonly around 90 to 120 days. Longer gaps may need a different approach.
Is bridge financing expensive?
The rate is higher than a mortgage rate, but the loan is short. For a month or two, the total cost is often in the hundreds to low thousands of dollars, depending on the amount and fees.
Sources
- Bank of Canada, October 28, 2026 decision (rules checked 2026-10-31)