When the bank makes sense
If you need long-term financing and can wait weeks or months without losing anything, the bank costs less.
When a bridge loan makes sense
When the money has to arrive sooner. We give you a preliminary answer within 24 business hours, and funding usually takes 7 to 15 business days. The decision rests on the property and your repayment plan, with a basic income and credit review.
| Bank | Link | |
|---|---|---|
| Time to a decision | Weeks or months | Preliminary answer within 24 business hours; funding in 7 to 15 business days |
| What the decision is based on | Your income, your history and lengthy paperwork | The property and your repayment plan, with a basic income and credit review |
| Flexibility | Standard products | Fits your repayment plan: sale, refinance or project cash flow |
| Term | Long term | 2 years |
| Cost | Cheaper | More expensive: 12% to 15% a year. Compare it with what waiting costs you. |
| Best for | Long-term financing at the lowest cost | Covering the wait until the sale, the bank or the project’s cash flow comes through |
How they work together
A bridge loan can cover the wait while the bank loan comes through: you close the purchase or keep the build moving today, then repay the bridge loan with the bank financing.
Before you decide
A bridge loan is short-term: 2 years, paying interest only, with the principal at the end. Be clear about how you will repay it. Our preliminary answer tells you whether your request fits.