Periodically agents has askedfor information about "BRIDGE FINANCING" so I thought I would give you a brief outline for your informiton when dealing with general questions. Bridge Financing in interim Financing used to bridge a purchase and sale when the closing dates do not coincide
General Conditions/ Requirements are as follows:
- Confirmation of Equity: accepted unconditional offer to purchase covering sale of existing property and verification of the amount owing against the property plus sales commission
- Maximum of funds available for interim financing is the lesser of the down payment plus 1.5% of purchase price OR 90% of net sale proceeds
- Max term - 90 days
- Admin or set up fee - $250
- Interest rate is Bank prime plus 2%
- Letter of Direction covering sale proceeds
- Assignment of sale proceeds and acknowledgement thereof, from vendors' solicitor
- Mortgage for new purchase must be with the lender providing the bridge financing
If you have any questions or need clarification of the above please don't hesitate to contact me.
Betty Talbot A.M.P
Centum Omni Mortgage Corp.