A bridging loan is a temporary loan that is intended to ‘bridge the gap’ that could exist when a homeowner is still selling his house and when he is set to take another mortgage. In other words, when a homebuyer is purchasing a new home before completely selling his current house, the bridge loan can be a source of cash needed to pay the down payment of the new home purchase.

Bridging loans are supposed to use the buyer’s existing house as security. The facility can provide sufficient amount of money to fund the down payment, which is a requirement to buy and relocate to the new move-up home. There is doubt that a bridging loan can help you finally buy your dream house.
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