Bridge: Financing the Next Step

When it can come up

A property may need time to establish rental income, reach a planned sale or prepare for longer-term financing. A bridge can be considered when the timing or structure does not fit a standard long-term loan. The term is used differently across the market; not every bridge product excludes renovation.

A home for situations that need another approach

Think of a bridge as a possible tool for a deal that does not fit neatly today. It is not a catch-all promise that any property or borrower can be financed. The property, available cash and repayment plan still need review.

Know the exit

The exit is how you plan to repay the short-term debt. Selling or refinancing is a plan, not a certainty. Ask what must happen first, how long it may take and what you would do if the next loan or sale does not happen on time.

Your quick checklist

• State the next step that will repay the loan.
• Check the loan due date against your timeline.
• Budget interest and other charges during the bridge period.
• Have a backup plan if the next step is delayed.