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A short-term mortgage to bridge a purchase/sale

Bridge Loan

Main image for Bridge Loan mortgage product

It's a bit like chess.

The problem is a simple one: a short loan or mortgage to buy a new property while you're waiting for your current home to sell. Short term money to bridge the gap between a sale and a purchase. Simple stuff, right? Unfortunately, getting a bridge loan from your bank can feel a bit like playing an off-side game of chess with them - almost like they started out with all queens, and you were given a couple pawns to defend with. The truth is, since the late 1990s, the banks just no longer care how long you've banked with them. They don't care about your relationship - it's all become a bit one sided.

"..my bank said they won't/can't/don't feel like doing it."
Over the years we've heard it more times than we can count; "I just need a short-term loan and my bank said they won't/can't/don't feel like doing it." Another classic is "I'm just so mad, the bank left me high and dry at the last minute - can you help?"

Fortunately, we can!

The problem is banks just don't like putting in all the effort/time to prepare a mortgage that will get paid out once the home sells. After running into this problem regularly, in partnership with our sister-company, Tekfund, we launched a mortgage product in-house to meet the needs of people running into exactly this problem.

So you do it?

We sure do! If you are selling your current home, and just want a short-term mortgage so you can buy your next one (but don't need another mortgage on it once your current one sells), we can do it. Some things worth noting:
- The home you're buying needs to be equal or lower cost
- The maximum mortgage your current home can have is 25% loan-to-value
- These are open, short term (<4 months) so the interest rate at roughly the same as a bank's 6-month open term with an additional origination fee.
- The timeline can be very quick, often requiring just an appraisal (but even that can be waived on exception) and confirmation of no income taxes owing.

What about income?

This is where the Tekamar bridge loan really shines - our mortgage product is not income qualified, or stress tested. This means you can be fully retired or not having any income and can still happily consider doing it. We've found there's a number of people who are retired, have banked with their bank forever, and despite plenty of equity, because they don't income qualify for the bridge loan, they don't qualify for it at all. We're different, we just need to prove the equity position is there and we can consider it.

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