Personal Finance

Mortgage Bridging or HELOC?

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  • Apr 6th, 2010 4:38 pm
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Banned
May 5, 2003
4879 posts
36 upvotes
Toronto, Ontario

Mortgage Bridging or HELOC?

We are in the process of buying a new house. The closing date will probably be before or close to the sell date of our current home.

What are my options with regards to bridging finance?
4 replies
Deal Addict
Feb 4, 2008
3137 posts
179 upvotes
You will not be able to bridge unless you have a firm sale in place for your current property.

A HELOC may work if you debt service both properties.
Do your mortgage math correctly!
Banned
May 5, 2003
4879 posts
36 upvotes
Toronto, Ontario
sslinn wrote: You will not be able to bridge unless you have a firm sale in place for your current property.

A HELOC may work if you debt service both properties.
What do you mean by debt service both properties.

Here is a sample scenario.

Current home is worth $100k and paid off
New home is being bought for $300k. Want to use the $100k (and say $50k cash) as downpayment.

What are my option to bridge the finance gap if my new house closing date is earlier than the clsoing date of the house being sold?
Deal Addict
Feb 4, 2008
3137 posts
179 upvotes
If you qualify with the heloc that will be the best way to go in your situation.
Do your mortgage math correctly!
Banned
May 5, 2003
4879 posts
36 upvotes
Toronto, Ontario
any other thoughts?

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