Recently, we had the opportunity to assist a buyer with a short-term bridge loan to purchase a new property while waiting for their existing home to sell. In this transaction, we cross-collateralized the purchase asset and sale to meet the closing and provide a smooth transition for the buyer.
A bridge loan is a short-term loan that helps bridge the gap between the purchase of a new property and the sale of an existing property. This type of loan can be especially helpful for buyers who need to purchase a new property but haven't yet sold their current home.
In this particular case, we were able to provide the buyer with a bridge loan that allowed them to purchase the new property they wanted while waiting for their existing home to sell. We cross-collateralized the purchase asset and sale, meaning that we used both properties as collateral for the loan.
By cross-collateralizing the purchase and sale, we were able to provide the buyer with the necessary funds to close on the new property while also ensuring that our loan was secure. Once the buyer's existing home sells, we will be able to provide them with a longer-term institutional mortgage.
This transaction was a success because we were able to provide the buyer with the funds they needed to purchase their new property while also minimizing the risks associated with a bridge loan. By cross-collateralizing the purchase and sale, we ensured that our loan was secure and that the buyer had a smooth transition between properties.
Over the last 90 days, we have had the pleasure of helping numerous clients with a variety of mortgage solutions tailored to their unique needs. Some of the most popular solutions we have provided include:
Converting higher rate variable mortgages into shorter-term fixed mortgages: With interest rates rising, many clients have been seeking ways to secure lower interest rates on their mortgage. By converting their variable rate mortgages into fixed-rate mortgages with shorter terms, we have been able to help clients save money and better manage their mortgage payments.
Refinancing debt and higher rates into shorter-term fixed rates for cash flow and debt consolidation: We have also helped clients refinance their debt and higher interest rate mortgages into shorter-term fixed-rate mortgages. This not only helps to improve their cash flow, but it also allows for debt consolidation, making it easier to manage and pay off their debts.
Renewals - supporting clients negotiate the best terms on renewal: For clients with mortgages up for renewal, we have been able to support them in negotiating the best terms possible for their mortgage renewal. Our team is dedicated to ensuring that our clients receive the best possible mortgage rates and terms, and we have a proven track record of success in this area.
Construction capital for principal residence: We have also been able to provide construction capital for clients who are building their principal residence. This solution allows clients to finance their construction project with competitive mortgage rates and terms.
Commercial restructuring of debt obligations: Our commercial desk has seen a major uptick in restructuring debt obligations. With our expertise in commercial mortgages, we have been able to provide solutions for clients looking to restructure their debt in order to better manage their finances and improve cash flow.
Thanks,
Scott