Bridging a Property Purchase — $200,000
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Catalyst Private Credit > Bridge Financing > Bridging a Property Purchase — $200,000
The situation
A homeowner is purchasing a new property, but the purchase closes before the sale of their existing home. They need $200,000 to cover the temporary funding gap.
Proposed structure
A short-term bridge loan secured against acceptable property equity, with repayment planned from the existing home's sale proceeds. The review considers outstanding mortgages, the sale agreement, closing dates, and the proceeds available after expenses.
Intended outcome
Allow the homeowner to complete the purchase while waiting for the sale to close, with a defined repayment event and a contingency plan if the sale is delayed.
At a glance
- Amount: $200,000 (illustrative)
- Structure: short-term bridge loan secured against acceptable property equity
- Repayment: planned from the existing home's sale proceeds
- Contingency: a defined repayment event with a plan if the sale is delayed
What the review considers
Factors assessed in a structure like this:
- Outstanding mortgages on both properties
- The sale agreement, its conditions and closing dates
- Proceeds available after expenses
- A contingency plan if the sale is delayed
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Scenario:
Homeowner -
Status:
Illustrative example -
Category:
Bridge Financing -
Amount:
$200,000 -
Share:
ILLUSTRATIVE FINANCING SCENARIOS
How financing could be structured. Hypothetical examples only; not completed Catalyst Private Credit transactions.
Have a transaction in mind? Share a brief overview and the date you need funding, and we can begin by identifying the information needed for a review.
