When you are selling your current home and buying a new one there are a lot of moving parts in order to get both deals closed. Ideally they could close a day or two prior to the purchase. However, things don't always go that way. This does not mean you can't make it work.
You may be able to close your purchase before your sale, you will just have to arrange it with your lender. In this situation, lenders will often offer clients what is referred to as "bridge financing". This means the lender will lend the client an additional sum of money for the period between the closing of the purchase, and the closing of the sale. This is a short term loan and the total amount of the bridge financing will be paid out by your lawyer out of the proceeds from the sale of your current home on closing day. This allows clients the flexibility to find a perfect home without the strict time constraints of trying to close both deals almost simultaneously.
For more information about bridge financing from the major banks, here are some links to their information pages on the subject:
If you have any questions about lenders you can call us at (902) 826-3070 or email us at firstname.lastname@example.org to set up a meeting with one of our lawyers at our Tantallon law firm. You can also schedule a no commitment Issue Review Consult for $100+HST where you have the opportunity to explain your situation to a lawyer and get basic advice before deciding whether or not you'd like to retain us.
By: Briana C. O'Grady, J.D. – Associate Lawyer
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