Bridge financing is an option for people who own a home and are buying a new one. It allows you to complete the sale of your new home earlier than the completion of your current home. Some people choose this option when there are renovations to do on the new home. The cost of the bridge is per day and is based on the current interest rate, and the amount of money bridged. In today’s market it could be a little as one dollar per day.
If a kitchen renovation will take four weeks from start to finish, the cost would be approximately $30.00. Have your banker calculate exactly how much it will cost you to bridge finance your project.