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Bridge Financing

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Bridge Financing

Short-Term Funding Solutions for Your Time-Sensitive Projects

Bridge financing has become an essential financial tool in Canada, providing short-term funding solutions for businesses that need immediate capital. Bridge loans offer a quick and flexible solution.

What is Bridge Financing & Why Do You Need It?

Bridge financing is a short-term loan solution designed to “bridge the gap” between immediate capital needs and long-term funding sources.

 

These loans are often used for: 

  • Property Acquisitions: Secure a real estate asset before permanent financing is available.
  • Development & Construction: Fund early-stage construction costs or land servicing.
  • CMHC Transition Financing: Bridge the period before securing CMHC MLI Select or construction loans.
  • Debt Consolidation & Repositioning: Pay off high-interest debt and stabilize cash flow.
  • Distressed Asset Solutions: Avoid foreclosure or power of sale situations.

Key Features of Bridge Loans:

  • Short-Term Duration: Typically 6 to 24 months
  • Higher Loan-to-Value (LTV): Up to 50-65% of asset value
  • Interest-Only Payments: Reduce upfront financial burden
  • Fast Approval & Funding: Capital deployed within 2-4 weeks
  • Flexible Exit Strategies: Transition to CMHC, conventional, or sale-based exit

Bridge Financing Tailored for Specific Asset Classes

Multifamily Development & Acquisitions

  • Transition properties to CMHC-insured financing
  • Secure funding for rental developments and lease-ups

Land Development & Servicing

  • Bridge funding for zoning approvals, infrastructure development
  • Secure higher loan amounts based on land value

Industrial & Commercial Properties

  • Fast-track acquisitions of warehouses, office buildings, and retail assets
  • Short-term liquidity for asset repositioning

Distressed Asset & Foreclosure Prevention

  • Prevent power of sale or distressed property losses
  • Secure fast liquidity to stabilize financials

Who Can Benefit from Bridge Financing in Canada?

Bridge loans cater to various borrowers, including:
  • Homebuyers & Homeowners: Those needing immediate funds to purchase a new home while selling their current one.
  • Real Estate Developers: Investors requiring interim funding to complete construction projects.
  • Small and Medium Businesses: Companies needing cash flow for payroll, inventory, or operational costs.
  • Entrepreneurs: Business owners looking for short-term funding to seize growth opportunities.

Why Choose AKAL Mortgages for your Bridge Financing

With a deep understanding of >real estate finance, capital markets, and investment structuring, we ensure clients secure bridge loans with the most favorable terms.

  • Direct Access to Lenders: Work with a network of private lenders, institutional banks, and equity investors.
  • Tailored Loan Structures: Customized LTV, DSCR, and exit strategies based on project needs.
  • Fast & Efficient Processing: Streamlined underwriting and closing processes to secure funding quickly.
  • Specialized in Large-Scale Deals: Expertise in multifamily, land development, industrial, and commercial real estate.

Our Process for Securing Bridge Financing

AKAL Commercial Mortgages provides end-to-end support in securing and structuring bridge loans:

Step 1: Initial Consultation & Deal Evaluation

  • Assess the property value, financials, and risk profile.
  • Identify LTV, DSCR, and loan structure tailored to the project.
  • Evaluate potential exit strategies (refinance, sale, or construction financing).

Documents Needed for Evaluation:

  • Property appraisals and land value assessments
  • Financial statements and development budgets
  • Business plan and pro forma projections

Step 2: Loan Structuring & Lender Selection

  • Negotiate optimal terms with bridge loan providers.
  • Structure financing based on exit strategy, cash flow, and risk mitigation.
  • Ensure fast approval timelines to prevent deal disruptions.

Common Loan Terms Secured:

  • Loan Amounts: $2M - $100M+
  • Amortization: Interest-only payments
  • Exit Strategy: Clear plan to transition to long-term financing

Step 3: Due Diligence & Loan Approval

  • Conduct legal, title, and environmental due diligence.
  • Structure agreements to protect borrower interests.
  • Coordinate with lenders, lawyers, and valuation teams.

Documents Needed for Loan Processing:

  • Updated appraisal reports
  • Corporate financial statements & PFS
  • Lease agreements (if applicable)

Step 4: Funding & Deployment

  • Quick fund disbursement based on pre-negotiated draw schedules.
  • Ensure capital is deployed efficiently and securely for acquisitions or development.
  • Provide ongoing loan management support.

Expected Timeline:

  • Loan approval in 4-6 weeks
  • Funding within 2-4 weeks

Step 5: Transition to Permanent Financing

  • Convert bridge financing into long-term CMHC-insured loans, conventional mortgages, or asset sales.
  • Optimize terms for future refinances and capital stack structuring.
  • Provide advisory services to ensure risk mitigation and portfolio growth.

Exit Strategies Supported by us:

  • CMHC MLI Select Financing (Multifamily)
  • Permanent Loan Refinancing (Banks, Institutional Lenders)
  • Sale & Capital Reinvestment

Key Benefits of Choosing us for Bridge Financing

  • Customized Loan Structures: Every deal is structured based on the best LTV, DSCR, and risk profile.
  • Fast Approvals & Fund Deployment: We streamline the process to secure capital quickly.
  • Specialized in High-Value Transactions: Proven expertise in multifamily, land, industrial, and commercial real estate.
  • Seamless Transition to CMHC & Long-Term Financing: We ensure a smooth exit strategy to minimize costs.
  • Strong Lender Relationships: Access to top-tier private and institutional lenders.
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Get Started with AKAL Mortgages – Your Bridge Financing Expert

Whether you need short-term capital for a real estate acquisition, construction project, or repositioning, AKAL Commercial Mortgages provide expert guidance and access to top-tier lenders.

Contact us Today to Discuss Your Financing Needs.

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