Bridge financing fills the gap between where a deal is today and where it needs to be to qualify for permanent institutional financing. We structure short-term capital with defined exit strategies for acquisitions, stabilization, and permit phases.
In the current BC market, some of the most lucrative deals do not yet fit the narrow box of standard bank financing. Bridge financing provides the "breathable room" required to achieve the asset's full income potential. Common scenarios include:
Short-term capital for active value creation.
When a deal requires a close in 2-3 weeks; bridge financing allows the purchase now, with a takeout to bank debt once stabilized.
For properties with high vacancy or deferred maintenance that need stabilization before institutional lenders will advance.
Holding a development site awaiting rezoning or DP which will significantly increase the land's appraised value for the capital stack.
Provides capital against post-renovation value for buildings losing income during major active construction periods.
Bridge capital is designed to be lean and transitory. We structure these files with a clear focus on the eventual refinance or sale:
Lenders typically advance 65–75% of the "as-is" appraised value. Some private lenders may advance against future "as-complete" value if the borrower has a strong track record and permits in place.
Private bridge capital can close in 1–3 weeks. The timeline is usually dictated by the speed of the appraisal and legal due diligence, rather than the lender's underwriting decision.
Most BC bridge lenders offer extensions (typically for a fee) if the exit strategy remains credible. We build extension options into the original commitment whenever possible.
Interest on bridge loans used to acquire or hold income-producing commercial property is generally tax deductible in Canada. Consult your tax professional for details.
