KARAKTER Blog · Upsizing
Bridge Loans for Calgary Upsizers, Explained
What a bridge loan actually is
A bridge loan is short-term financing that lets an upsizing Calgary homeowner take possession of a new home before their existing home's sale closes. Most Canadian banks offer it. The lender uses the equity in the existing home (already under firm sale contract, all conditions removed) as security, and advances up to the difference between the new-home down payment and the expected net proceeds from the existing home.
How the math works
Say your existing home is selling for $850K with $380K mortgage outstanding and $42K in commission and prep, leaving net equity of about $428K. Your new home requires $260K down plus $10K closing plus $4K moving = $274K total cash at the new closing. Bridge required: $274K (the net equity is not in your account yet on closing day). For a 60-day bridge at prime + 3% (~9.45%), interest runs about $4,250 plus a $400 setup fee.
Bridge vs HELOC
See the dedicated comparison at /compare/bridge-loan-vs-heloc-calgary for the full framework. Short version: HELOC is cheaper but requires advance setup; bridge is faster but requires the existing home under firm contract.
Lender requirements
- Existing home must be under firm sale contract (all conditions removed)
- Mortgage on new home must be approved with the same lender (or arranged in coordination)
- Bridge term typically capped at 90–120 days
- Some lenders require legal undertaking from the closing lawyer
How KARAKTER coordinates
Ryan works with several Calgary mortgage brokers and coordinates timing directly. Bridge financing is most often arranged in the days between condition removal on the existing-home sale and the new-home possession date. The KARAKTER upsizing analyzer at /calculators/upsizing-analyzer surfaces the actual bridge cost for your specific scenario.
When to use a bridge
You are buying first and need 30–120 days to close the existing home. The convenience of moving once outweighs the bridge cost. Your existing home is under firm sale.
When to use a HELOC instead
You set it up well before listing. You want flexibility and lower rate. You can complete full underwriting weeks ahead.
Frequently asked questions
How quickly can a bridge be set up?
What if my existing home does not sell?
Can I bridge my whole down payment?
Educational. Specific Calgary real estate outcomes depend on the property and current market segment. Always verify Alberta legal, tax, and lender details with the appropriate professional.