A Bridge Loan is a short term financing option that allows you to borrower against the value of your current home. Bridge Loans, also known as Gap Loans, are usually used when circumstances do not allow you to sell your current home before purchasing a new one. That may be because you are relocating for work or you find yourself in a competitive market that requires you to move quicker than the time it would take you to sell your home.

Bridge Loans usually have interest only payments for 6-18 month terms at which time the entire balance would come due. It is believed that 6-18 months would give someone enough time to sell there home and pay off the Bridge Loan (and any other mortgage balances they may have outstanding).

Bridge Loans have higher interest rates than traditional conventional mortgages due to the inherit risk.