Providing Real Estate Flexibility Through Bridge Financing in Ontario
At Tembo Financial our specialty is providing homeowners the funds necessary to cover the financial gap between their new purchase and the sale of their existing home when the closing dates of both properties aren’t aligned. Don’t get stuck forfeiting your deposit! Call Tembo Today. From $25,000 with no maximum loan amount, Tembo Financial is the place to go for all your short-term real estate transactions with no income verification, credit checks or appraisals*. Our process is quick, our pricing is competitive, and you can receive funds quickly.
How does bridge financing in Ontario work?
Bridge financing is a short-term loan secured against two properties when the purchase closes before the sale of an existing home. Bridge financing has become increasingly difficult to obtain through traditional banks, especially if a homeowner is downsizing and won’t require a mortgage on the new purchase.
By putting a mortgage on an existing property as well as the new purchase, homeowners obtain the funds needed to close. The loans are extremely flexible, with open terms (no penalties for repayment) and which gets repaid once the existing property closes! With flexible payment structures available, you may not have to make any monthly payments!
Advantages of Bridge Financing with Tembo Financial:
- Access home equity to complete the real estate transaction within 48 hours*.
- Don’t spend time stressing on whether you’ll close on your purchase. Same day approvals*
- Open repayment terms so homeowners avoid prepayment penalties.
- Transparent pricing & competitive rates
- Extremely low legal fees
Bridge Financing in Ontario explained:
You are the homeowner of 250 Sports Fan Way which is currently on the market for sale. You accept an
unconditional offer from a buyer for your current property, which has a closing date of December 15 for
$1,000,000.00. The home has no mortgage on it; therefore, you own the property free and clear.
On the same day of accepting the offer on your property you place an offer to purchase a new condo at
65 Grocery Lane for $600,000.00, which is accepted with a closing date of October 15. Your supposed to
take possession 61 days before the closing date of your existing home.
To close on your new purchase, you’ll need approximately $600,000.00 on your closing date (October
15), however you won’t receive the proceed from your sale until December 15. What can you do?
This is a great example where a homeowner can use bridge financing. Through Tembo Financial you
take out a short term $600,000.00 loan for the 61 interim days between your purchase closing (Oct 15)
and your sale closing (December 15). When your existing home sells on December 15th Tembo would
get repaid from the sale of your home. After the loan is repaid, you would then own the condo ‘free and
clear”. Tembo helps make buying and selling real estate easy and stress free. Call us today to discuss.
Frequently Asked Questions
The fees are simple with our bridge financing loans and always clearly outlined in our commitment and borrower disclosure. The fee structure is dependent on many factors, including the loan amount, the position on title as well as the location and condition of the subject property. Give us a call today to discuss your situation and get a quote! Call 416 238 6717.
Yes, lawyers are required to complete the loan transaction. Fortunately for our clients, Tembo Financial has really low legal fees.
The application process is simple and only takes a few short minutes to complete. Most clients are approved in minutes! We are often able to fund the loan in 24-48 hours. Some conditions apply and are subject to qualification.
All our loans are secured by real estate. Tembo Financial registers a mortgage ranking directly behind the existing mortgage(s) in place.
Funds are sent to our client’s bank account directly from the lawyers once the file is “closed” and the mortgage is registered on title.
In most cases we do not require appraisals, however some exceptions apply.
Personal Information:
2 pieces of Valid ID (Drivers License, SIN #, Credit Card, Passport)
Void Cheque
Most Recent NOAs (upon request)
Documents Related to the property:
Most recent mortgage statement(s)
Most recent property tax statements
(If the property is Sold or going to be sold)
Listing Agreement
Purchase and Sale Agreement (when applicable)
Sold MLS Listing (when applicable)
Any waivers, Amendments pertaining to the sale.
A copy of the buyer’s deposit cheque (when applicable)
The interest rates at Tembo Financial are competitive to current market prices but do vary depending on each client situation. Please call our offices at 1 844 238 6717 to get a quote.
Our minimum loan amount at Tembo Financial is $25,000.00
In most cases, the bridge financing is paid out on the closing date of the clients “sold” property.
Tembo lends throughout Ontario. Please contact us directly to see if we lend in your area. Some of our approved lending areas include: Ajax, Arnprior, Barrie, Bracebridge, Bradford, Brantford, Belleville, Burlington, Brampton, Caledon, Cambridge, Collingwood, East Gwillimbury, Erin, Fort Erie, Guelph, Goderich, Gravenhurst, Grimsby, Hamilton, Halton Hills, Huntsville, Ingersoll, Kawartha Lakes, Kingston, Kitchener, London, Markham, Mississauga Milton, Mono, Newmarket, Niagara Falls, Oakville, Orillia, Ottawa, Orangeville, Pelham, Pickering, Peterborough, Prince Edward County, Richmond Hill, Sarnia, St Catharines, St. Thomas, Toronto, The Blue Mountains, Vaughan Wasaga Beach, Whitby, Waterloo, Whitchurch-Stouffville, Windsor.
Yes, most of our bridges financing solutions are fully open. This allows our clients to repay their loan any time during the term of the loan without any repayment penalties. Typically, we simply get repaid on the closing date and get paid directly from the lawyers on closing.
In most cases our bridge financing terms are 3 or 4 month, fully open terms. Depending on the client’s situation we can customize the term length to be anywhere between 1 and 12 months for all bridge financing.