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42 OUR HOUSE WINTER 2018 DOMINION LENDING CENTRES R arely in life do things go as planned, especially in real estate. In a perfect world, when buying a new home, most people want to take possession of their new residence before having to move out of the old one. This makes moving a lot easier and allows you time for painting or renovations prior to moving into your new digs. This is where it gets complicated; most people need the money from the sale of their existing property to come up with the down payment for the new house. This is where bridge financing comes in. Bridge financing allows you to bridge the financial gap between the firm sale of your current home and the firm commitment to purchase your new home. Bridge financing allows you to access some of the equity in your existing property, which you can put towards the down payment on the new property you are buying. Where many people get confused is that in order to HOW BRIDGE FINANCING KELLY HUDSON is a partner with DLC Canadian Mortgage Experts in Richmond, B.C. What are your options when the closing dates for your old and new homes just don't line up? By KELLY HUDSON Wks secure bridge financing, you must have a firm sale on your existing house. That means all subjects have been removed. If you haven't sold your home, you won't get the bridge financing, because there is no concrete way for a lender to calculate how much equity you have available and if you can a‹ord your new home. Exhaust the other options first For most people, unless you can qualify and pay for two mortgages, you should always sell your existing home before purchasing a new one. Why? » With today's property values constantly changing, you won't know how much money you have until you sell your home. Your home is only worth what someone is willing to pay for it now. Past sales and future guesses don't count! » You need the proceeds from your existing home to help pay for your new home's down payment, renovations, moving costs and (if required) the size of mortgage you qualify for. Bridge over troubled water If you have sold your existing home but your closing date is after the closing date of the new property you just purchased, then bridge financing is your best option. Things to consider: TOOLBOX