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DOMINION LENDING CENTRES OUR HOUSE WINTER 2018 43 ISTOCK » Your new lender must allow for bridge financing, which not all do. Your mortgage broker can work with you to find a lender that o…ers bridge financing. » Bridge financing costs more than your traditional mortgage. Expect the Prime rate plus two to four per cent, plus an administration fee. » Typically bridge loans are restricted to 90 days. What happens if you don't sell your home? Banks will not provide you with a bridge loan if you don't have a firm sale agreement for your home, since the loan can't be open-ended. If you don't have a firm selling date you may need to consider a private lender for the bridge loan. Private financing If you have purchased your home, the deal is closing and your existing home has not sold, then you may have to take out a private loan. Some things to consider: » This option is expensive and is based on your having enough equity in your current property to qualify. » Private financing comes with a high interest rate—typically seven to 15 per cent plus an up-front lender fee plus broker fee. These amounts will vary based on your specific situation, such as the time required for the loan, the loan amount, loan-to-value ratio, credit bureau, property location, etc. » Private financing is expensive, but it could be cheaper than lowering the purchase price of your existing home by tens of thousands of dollars to sell your existing home quickly. In case your bank doesn't do this type of financing, you must use a specialized mort- gage broker who has access to individuals that lend money out privately. Bridge financing and private financing are solutions when your buy and sell dates don't work. Don't waste your time trying to sort all this out on your own. Give a Dominion Lending Centres mortgage specialist a call and let's figure out what your best option would be. Bridge financing ALLOWS YOU TO ACCESS SOME OF THE EQUITY IN YOUR EXISTING PROPERTY, which you can use towards the down payment on the new property you are buying.