Bridge Loan Calculator Canada — Cost of Buying Before You Sell
When your new home closes before your current home sells, you need a bridge loan. It's short-term financing at a premium rate — typically prime + 2–3%. Calculate your daily interest cost, total bridge fees, and what your mortgage looks like once the sale closes.
What you'll need
- New home purchase price
- Current mortgage balance on the home you're selling
- Expected sale price and number of overlap days
How it works
Enter your new home purchase price and existing mortgage
The bridge loan amount is based on your net equity from the home you're selling, minus your existing mortgage and estimated realtor commission.
Set the expected sale price and bridge period
Enter your expected sale price and the number of days between your purchase closing and sale closing (typically 30–90 days).
See daily interest cost and total bridge cost
We calculate daily interest at prime + 2.2% (typical Canadian bridge rate), total interest, and what your mortgage looks like after the sale closes.
Bridge Loan Example — Buy $900K, Sell $750K, 60 Days
| Item | Amount |
|---|---|
| Net equity from sale (after mortgage + commission) | $370,000 |
| Bridge loan amount | $370,000 |
| Bridge rate (prime + 2.2% = ~9.45%) | 9.45% |
| Daily interest cost | $96/day |
| Total interest (60 days) | $5,760 |
| Lender admin fee | $350 |
| Total bridge cost | $6,110 |
| New mortgage after sale | $530,000 |
Bridge loan rates vary by lender (typically prime + 1.5–3%). Most banks require confirmed purchase AND sale agreements before approving bridge financing.
Frequently asked questions
What is a bridge loan in Canada?
A bridge loan (or bridge financing) is a short-term loan that lets you buy a new home before your current home sells. It bridges the gap between your purchase closing date and sale closing date — typically 30 to 90 days. The loan is secured against the equity in your existing home and paid off when your sale closes.
What interest rate do bridge loans charge in Canada?
Bridge loan rates in Canada are typically prime rate + 2–3%, making them around 8.95–9.95% as of mid-2026. The rate is higher than a mortgage because the loan is short-term and unsecured until your home sells. Most lenders also charge a flat admin fee of $200–$500.
How long can a bridge loan last in Canada?
Bridge loans in Canada typically run 30 to 90 days. Some lenders extend to 120 days, but longer periods are harder to arrange and more expensive. If your sale is taking longer than expected, communicate with your lender early to discuss options.
Do all banks offer bridge loans in Canada?
Most major Canadian banks (RBC, TD, BMO, Scotiabank, CIBC) offer bridge financing, but only if you have confirmed purchase and sale agreements. Credit unions and mortgage brokers can also arrange bridge loans, sometimes with more flexibility. You generally need to be an existing client or have your mortgage with that lender.
Know your bridge costs before you commit to overlapping closings.
Calculate Bridge Loan Cost →