![\"How](\"https:\/\/www.matrixmortgageglobal.ca\/wp-content\/uploads\/2020\/01\/people-working-in-office-P3DBYE3-min.jpg\")
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How much can you borrow with a bridge loan?\u00a0<\/span><\/i><\/p>\n Most lenders will allow you to borrow up to 80% of the combined values of both homes. That means if you are selling a home that is valued at $200,000 and buying one worth $300,000 that with a bridge loan you will be able to borrow a maximum of $400,000.\u00a0<\/span><\/p>\n Advantages of getting a bridge loan.<\/span><\/i><\/p>\n A bridge loan can help you get into a new home without having sold your previous home right away. It also allows you to put an offer in on a new home without the contingency of selling your old one. This can give a competitive advantage in a sellers\u2019 market where there may be multiple parties interested in the same home.\u00a0<\/span><\/p>\n Are there any drawbacks to getting a bridge loan?<\/span><\/i><\/p>\n Bridge loans are generally short-term (3 months to a year) which means that lenders can\u2019t make very much money in interest unless the rates they charge are higher. Therefore, bridge loans usually have fairly high interest rates. This means you will want to pay off your bridge loan as soon as possible and apply for a regular mortgage once your old home has sold.\u00a0<\/span><\/p>\n Is a bridge loan right for you?<\/span><\/i><\/p>\n Usually, if you are in a hot real estate market (which the GTA is in right now), a bridge loan is a good to give you a competitive edge for buying a property. If you are in a buyers\u2019 market however, a bridge loan may not be the best option since you run the risk that you might not be able to sell your home for a long time. In this scenario, it might be better to wait until you sell your home and then rent for a short period of time.\u00a0<\/span><\/p>\n If you would like to learn more about bridge loans and get professional advice on whether this type of financing is right for you, contact Matrix Mortgage Global today.\u00a0<\/span><\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" In an ideal world if you wanted to sell your home and buy a new one, you\u2019d be able to sell your house just at the exact moment your offer was accepted on the new one that you wanted to buy. This world however is rarely ideal and sometimes, you find yourself in a…<\/p>\n","protected":false},"author":1,"featured_media":4975,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-4971","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"yoast_head":"\n