Canadian Bridge Loan Calculator

Q: Is bridge financing available through CMHC-insured mortgages?

Bridge financing itself is not insured by CMHC. Your new mortgage can be CMHC-insured if you are making less than a 20% down payment. The bridge loan is a separate, short-term facility repaid from the sale proceeds of your existing home.

Calculate your Canadian bridge loan interest cost — the short-term financing that lets you buy your new home before your current home sells. Compare closed bridge (firm sale agreed) vs open bridge rates, model daily interest costs, weigh bridge financing against selling first, and understand approval requirements from Canadian banks. All figures in CAD.

Current Home Equity

Deposit Needed for New Home

Firm Sale Agreement Signed?

Bridge Term (Days)

days

Prime Rate

Lender Margin Above Prime

Bridge Loan Amount

CA$100,000

Closed bridge at 9.20% (Prime +2.00%)

Total Interest Cost

CA$1,512

Daily Interest Cost

CA$25/day

Bridge Type

Closed

Max Term (Typical)

120 days

Advanced

Closed vs Open Bridge Rates & Daily Cost Table

Compare closed vs open bridge pricing, model daily interest by loan amount and rate, understand term limits by lender type

Closed bridging (firm sale agreement signed) attracts significantly lower rates than open bridging (no confirmed sale). The rate difference is typically 1-1.5% above prime, reflecting the lender's higher risk on open bridges.

Closed Bridge Margin

% above Prime

Open Bridge Margin

% above Prime

Bridge Amount

Bridge Term

days

Feature	Closed Bridge	Open Bridge
Requires	Firm sale agreement + closing date	Only a listing agreement
Rate	9.20%	10.70%
Daily Cost on CA$100,000	CA$25/day	CA$29/day
Total Cost (60 days)	CA$1,512	CA$1,759
Max Term (typical)	90-120 days	Up to 6 months
Approval Ease	Straightforward	More scrutiny

Cost difference: Open bridging can cost CA$247 more over 60 days on a CA$100,000 bridge. Signing a firm sale agreement before applying saves significantly.

Pro

Bridge vs Sell First, Risk Analysis & Approval Process

True cost of selling first vs bridging, discount-sale risk scenario, what banks require for approval

Selling your current home before buying means you avoid bridge financing costs, but incur the cost of moving twice, storage, and temporary housing. Compare the two options.

Moving Cost (each move)

Storage ($/month)

Temporary Housing ($/month)

Temp Housing Duration

months

Cost Item	Bridge Financing	Sell First / Move Twice
Bridge Interest Cost	CA$1,512	$0
Moving Costs	CA$3,000 (once)	CA$6,000 (twice)
Storage (2 months)	$0	CA$600
Temporary Housing (2 months)	$0	CA$5,000
Total Cost	CA$4,512	CA$14,600

Bridge financing wins by approximately CA$10,088 in this scenario — plus the convenience of not moving twice.

How to Use the Canadian Bridge Loan Calculator

Enter your current home equity, the deposit needed for your new home, whether you have a firm sale agreement signed (closed) or not (open), the bridge term in days, and the current prime rate plus your lender's margin. The calculator shows your bridge loan amount, total interest cost, and daily carrying cost.

What Is a Bridge Loan in Canada?

Short-term financing: A bridge loan lets you close on your new home before your current home sale completes, using your existing home's equity as security
Closed bridge: You have a firm sale agreement on your existing home — cheaper rates (typically prime +2%), max 90-120 days
Open bridge: No firm sale agreement yet — higher rates (prime +3-4%), up to 6 months, harder to obtain
Interest only: You pay only interest during the bridge term; the principal is repaid from sale proceeds
Short term: Not a long-term mortgage product — designed to be repaid within weeks to months

Formula: Bridge Loan Interest Calculation

Bridge Rate = Prime Rate + Lender Margin

Daily Interest = Bridge Loan Amount × (Bridge Rate ÷ 365)

Total Interest Cost = Daily Interest × Number of Days

Example (closed bridge):
Bridge Amount = $150,000
Prime = 7.20%, Margin = +2.00% → Rate = 9.20%
Daily Rate = 9.20% ÷ 365 = 0.02521%
Daily Cost = $150,000 × 0.02521% = $37.81/day
60-day bridge = $37.81 × 60 = $2,268.49

Closed vs Open Bridge: The Key Difference

The most important factor in your bridge loan cost is whether you have a firm sale agreement on your existing home before applying.

Comparison on a $200,000 bridge over 60 days (Prime 7.20%)

Feature	Closed Bridge	Open Bridge
Requires	Firm sale agreement + closing date	MLS listing only
Rate (Prime +2%)	9.20%	—
Rate (Prime +3.5%)	—	10.70%
Daily cost	$50.41/day	$58.63/day
Total 60 days	$3,025	$3,518
Max term	90-120 days	Up to 6 months

Sign your sale agreement before applying for a bridge wherever possible — it can save hundreds or thousands of dollars in interest and makes approval far simpler.

Bridge Loan vs Selling First: True Cost Comparison

Many homeowners assume that avoiding a bridge loan by selling first saves money. In practice, the cost of moving twice, storage, and temporary housing often exceeds the bridge interest cost.

Example: $200,000 bridge over 60 days vs sell-first scenario

Cost	Use Bridge Loan	Sell First / Move Twice
Bridge interest	$3,025	$0
Moving costs (x2 vs x1)	$3,000	$6,000
Storage (2 months)	$0	$600
Temporary housing (2 months)	$0	$5,000
Total	$6,025	$11,600

Bridge financing is cheaper by ~$5,575 in this scenario — plus you avoid the disruption of two moves.

Frequently Asked Questions

Canadian bridge loan rates are variable and tied to the Bank of Canada prime rate. For closed bridges (firm sale agreement), lenders typically charge prime +1.5% to +2.5%. For open bridges (no firm sale), rates are prime +3% to +4% or higher. With prime around 7.2% in 2024-25, closed bridge rates run approximately 8.7-9.7% and open bridge rates 10.2-11.2%. Check bankofcanada.ca for the current prime rate.

Closed bridge loans (with a firm sale agreement) are typically available for up to 90-120 days at major Canadian banks. Open bridge loans (no firm sale) may be available for up to 6 months at some lenders, though the big banks are often more restrictive. Private lenders and Mortgage Investment Corporations (MICs) can sometimes offer bridge terms up to 12 months, at significantly higher rates.

For a closed bridge loan, you typically need: a signed, firm Agreement of Purchase and Sale on your existing home (with a closing date), a signed Agreement of Purchase and Sale on your new home, mortgage approval on the new home, and sufficient equity in your existing home to cover the bridge loan. For an open bridge, lenders typically need at least a listing agreement, though requirements are stricter and rates higher.

Bridge financing itself is not insured by CMHC. However, your new mortgage can be CMHC-insured if you are making less than a 20% down payment. The bridge loan is a separate, short-term facility that is repaid from the sale proceeds of your existing home. The two products are distinct — your new mortgage insurance and your bridge loan are evaluated separately.

If your home does not sell before the bridge term ends, you will need to either sell at a discount to close quickly, negotiate a bridge extension with your lender (not always available), or arrange alternative financing. This is the primary risk of bridge financing — particularly with open bridges. Mitigate this by pricing your home correctly, having realistic sale timelines, and not overcrowding your bridge term.