Frequently Asked Questions
What is a bridge loan and how is Properly different?
What is a bridge loan?
If the sale of your existing home closes after the date that your purchase of your new home closes, you may not have the cash on hand that you need to come up with the down payment to close on your new home, since your equity is tied up in your current home. In these cases, homeowners usually get a bridge loan, which is a temporary loan that helps to “bridge” the gap between when your current home is sold and your new home is purchased. A bank will let you use the equity in your current home to pay for the down payment on your new home, even though you haven’t technically unlocked the equity in your sale yet.
How is Properly different than a bridge loan?
Properly’s guaranteed backup offer is a key to unlock the equity in your current home. This gives you the money to buy your next home without having to list your current home first. Properly is Canada’s only way to do this.
Bridge loans don’t give you this freedom. To get a bridge loan, you first need a firm contract to sell your home. But that means you’ll be in a time crunch to buy your next home, which is a problematic constraint - especially in a hot real estate market.
Properly solves this problem by promising to buy your current home at the start of your home-buying journey. This is a firm contract that you can use to get financing from the bank.
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