Bridge Financing
At TM Lending, we specialize in bridge financing tailored to the needs of big builders and developers in Ontario. Operating under the Financial Services Regulatory Authority of Ontario (FSRA), we ensure that our solutions comply with the highest industry standards while meeting the financial demands of multi-million-dollar projects.
Bridge loan financing is a short-term funding solution designed to bridge the gap between immediate financial needs and long-term financing. Builders and developers often use bridge loans to cover costs such as land acquisition, construction, or project expansion while waiting for permanent financing or the sale of an existing property.
The application process is simple and quick. We evaluate your financial profile, the value of your existing home, and your new property. Our team works fast, offering approvals within 2-3 business days to ensure you don’t miss out on your next property.
Once approved, the funds from your bridge loan are used to secure your new property. Whether it’s for a down payment or covering closing costs, the loan provides financial flexibility while you’re in the process of selling your current home.
After selling your existing home, you can easily repay the bridge loan. Most bridge loans are short-term, and with TM Lending, you won’t face prepayment penalties, allowing for an easy transition to your new mortgage.
Bridge financing can be a lifesaver for homebuyers caught in the timing gap between buying and selling homes. Here’s how you can decide if it's the right solution for you:
Bridge financing is an excellent option for:
Bridge loans often have higher rates due to their short-term nature.
Borrowers must be prepared to repay the loan within the agreed-upon term.
Repayment may rely on the successful sale of units or properties.
Understand the associated costs, including origination fees and potential prepayment penalties.
Bridge financing offers several advantages, particularly for homebuyers who need flexibility during their transition. Here’s what makes a bridge loan an attractive option:
Imagine a Tarion-certified builder working on a subdivision project in Ontario. The project is midway through construction, with funds from their current lender tied up in the next phase’s release milestones. They need $5 million to cover immediate costs such as contractor payments, materials, and unforeseen expenses while waiting for the next disbursement. A bridge loan provides the liquidity to maintain momentum and ensure no delays, allowing the project to progress smoothly until the next funding installment arrives.
The amount depends on your project’s scope and the value of your collateral. Typically, bridge loans range from $1 million to $50 million for large-scale developments.
Approval can be as fast as 7-10 business days, depending on the complexity of your application and required documentation.
Interest rates vary but are typically higher than conventional loans due to the short-term nature. Rates are competitive and reflective of your project’s risk profile.
Yes, bridge loans are designed to cover gaps while waiting for sales or other financial inflows.
This depends on the lender. Some bridge loans may have prepayment penalties, while others offer flexibility. Always review the terms with your broker.
Collateral usually includes land, buildings, or other tangible assets related to your project.
Yes, funds can be allocated for land acquisition, construction, marketing, and other project needs.
Contact us to discuss your project. We’ll guide you through the application process, ensuring you have the necessary documentation to secure funding.
Extensions may be possible, but it’s crucial to have a clear repayment plan to avoid defaulting.
