Funding gap
Purchase funds required are reduced by confirmed sale proceeds that will become available later to estimate the timing gap.
Closing-date liquidity
Bridge Loan Calculator Canada
Estimate the temporary funding gap between purchase and sale closings, daily bridge interest, fees, net advance, payout, and the cost of a sale-delay buffer.
Closing-gap calculationSimple daily interestSale-delay bufferNet advance after fees
Calculation inputs
Price the timing gap between closings
Estimate required bridge funds, daily interest, fees, payout, and the cost of a sale-delay buffer.
Bridge fees and net advance
%
$
$
$
How the calculation works
Understand the formula before relying on the result
Daily interest
The entered bridge amount is multiplied by the annual rate and divided by 365, then multiplied by planned and buffered days.
Fees and proceeds
The lender fee is calculated as a percentage of the bridge amount and fixed legal, administration, and appraisal costs are added.
Payout
The payout estimate adds accrued interest to principal. Fees deducted at funding reduce net advance but do not reduce principal owed.
Interpret the result
A short delay can be expensive
Bridge loans are short-term, but daily interest and fixed fees can make even a small delay material.
Firm sale proceeds must be verified
The equity available from the sale can change after mortgage payouts, commission, legal adjustments, taxes, and other liens.
Coverage surplus protects closing
A negative surplus means the entered bridge amount does not fully cover the modeled purchase-funding gap.
Buffer is risk planning
The added days do not predict a delay; they show how quickly cost rises if the sale closing moves.
Common mistakes
- Using gross sale price instead of net sale proceeds.
- Ignoring realtor commission, mortgage payout, and sale adjustments.
- Assuming bridge approval is automatic after purchase approval.
- Entering optimistic closing dates with no buffer.
- Forgetting that fees may be deducted from the advance.
What lenders review
- Firm purchase and sale agreements and closing dates.
- Existing and new mortgage approvals.
- Net equity after all registered debts and sale costs.
- Title, property, insurance, legal conditions, and assignment restrictions.
- Borrower capacity if the sale is delayed or fails.
Planning tips
- Use the lawyer's estimated statement of adjustments.
- Confirm whether the lender caps bridge duration or amount.
- Ask how extensions and minimum interest are charged.
- Preserve cash for purchase closing adjustments.
- Create a contingency if the sale does not close on time.
Connected HopeWell knowledge
Connect the bridge loan calculator to the mortgage decision
Use the result alongside HopeWell's guide chapters, glossary definitions, real underwriting case studies, service pages, and related calculators.
Calculation pathway
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Frequently asked questions
Questions about this calculation
What does a bridge loan cover?
It commonly provides temporary access to equity expected from a firm sale so funds can be used at an earlier purchase closing.
How is bridge interest calculated?
Many products use simple daily interest on the amount advanced, but the commitment controls the actual convention and charges.
Do I need a firm sale?
Many institutional bridge products require a firm sale agreement and an approved mortgage on the new property. Policies differ.
Are bridge fees deducted from proceeds?
They may be paid in cash, deducted from the advance, or handled through the lawyer depending on the lender and commitment.
What if the sale is delayed?
Interest continues, extensions may require approval or fees, and the borrower must still meet the purchase and mortgage obligations.