Bridge Loan: Finance Your New Property Before Selling the Current One
You own a property and want to buy a new one, but the sale of your current home is not completed yet. A bridge loan lets you finance the next purchase while you wait for the sale proceeds of your first property.
This solution is particularly useful when a unique opportunity arises on the real-estate market and you cannot afford to wait: growing family, new job in another region, or the desire to move into a more suitable home without missing the right timing.
Get your free simulation for Bridge LoanBridge Loan in 2026: Key Idea
A bridge loan is a temporary mortgage loan that covers the expected proceeds from the sale of your current property in order to finance the purchase of a new one.
In other words, it helps you avoid the financial gap between the moment you buy your new home and the moment you receive the funds from selling the old one.
How Does a Bridge Loan Work?
The bridge loan functions as a regular mortgage loan that follows the usual rules applied to home loans. Your bank advances you the amount needed to complete your new real-estate purchase, taking into account the estimated sale price of your current property and the remaining balance of your existing mortgage.
During the bridge period, you may be temporarily faced with repayments linked to two properties. This is why banks carefully analyse your financial situation: income, existing debts, household budget and the realism of the sale price of your current home.
Most banks in 2026 grant bridge loans only when there is a clear and coherent repayment plan after the sale of the first property. Once the sale is completed, the proceeds are used to partially or totally repay the bridge loan and to stabilize your new long-term mortgage.
Concrete Case Study of a Bridge Loan
Imagine the following situation: you own a house, but your family is growing or you have just accepted a new job in another region. You have found the ideal new property and you must act quickly, yet the sale of your current house may take several months.
To avoid missing this opportunity, your bank can grant you a bridge loan while you finalize the sale of your first property. This temporary financing covers the gap and gives you the flexibility to schedule your move without pressure.
Illustrative Example
You currently own a house with an estimated market value of €200,000. The remaining balance on your existing mortgage is €100,000. You wish to buy a new house valued at €250,000.
- Value of your current property: €200,000
- Outstanding balance on the first mortgage: €100,000
- Price of the new property: €250,000
You therefore request a total loan amount of €350,000:
- €250,000 to finance the purchase of the new property
- €100,000 to repay the remaining balance on the first mortgage
The combined market value of the two properties is €450,000 (current house + new house), which makes this bridge loan coherent and feasible from a banking perspective. After selling your first house for €200,000, you use the sale proceeds to reduce the new mortgage granted for your second property.
Key Advantages of a Bridge Loan
Seize Opportunities Quickly
Do not lose a property that matches all your criteria due to timing issues. The bridge loan lets you buy first, then sell, so you can commit to a purchase as soon as the opportunity arises.
More Flexibility for Your Move
You avoid rush decisions and can better plan the sale of your current home, negotiate the price and organise your move with less financial and logistical pressure.
A Framed and Secure Loan
Even if it is a specific solution, the bridge loan remains a standard mortgage with clearly defined conditions, ensuring a secure framework for both you and the bank until the sale is completed.
Before Taking Out a Bridge Loan: What to Check
With a bridge loan, you may temporarily support the cost of two properties. It is therefore crucial to check your repayment capacity: income stability, other loans, financial reserves and margin for unexpected events. A careful simulation helps define a structure that is compatible with your household budget in 2026.
The real-estate market can fluctuate from one area to another. Discuss with a real-estate expert to obtain a realistic valuation and an estimate of the sale period. This will help you choose the most appropriate bridge period and reduce the risk of delays beyond the usual two-year limit.
The bridge loan is a temporary solution that should be integrated into a global strategy for your future mortgage. Think about the desired duration, interest rate type (fixed or variable) and the level of monthly payments that you will be comfortable with once the sale of the first property is completed.
Plan Your Real-Estate Transition With a Bridge Loan
You are considering buying a new property while still owning your current home? Explore how a bridge loan can help you structure this transition and secure your project in 2026.
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