Commercial Bridge Loans in Canada

Short-Term Financing for Time-Sensitive Commercial Deals

We secure commercial bridge loans for borrowers across Canada who need to move quickly, navigate a financing gap, or act on an opportunity that conventional timelines cannot accommodate. We work with a broad network of lenders, including banks, private capital sources and alternative institutional lenders. Terms are structure around your property, your exit strategy, and your timeline. If you have a deal that needs to close before conventional financing is ready, we can help you get there.

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Commercial Bridge Loans Canada

Up to 75%

Loan-to-Value

$100k – $100m

Mortgage Amount

Interest Only

Amortization Length

Prime + 3% to 6%

Rate Estimate ⓘ

About Commercial Bridge Loans

Why Bridge Financing Needs a Broker

The most competitive lenders rarely work with borrowers directly on bridge financing. Terms vary dramatically between private and institutional sources, and a poorly structured application can cost you the deal you are trying to close. A commercial mortgage broker with active bridge lender relationships gives you access to capital and structuring expertise that is not available through a standard lender search.

Going Direct to a Bank

  • You are limited to the one or two bridge lenders you can find on your own, with no ability to compare terms
  • No one is reviewing your file before submission, so underwriting issues surface late and delay funding
  • You negotiate against yourself because the lender knows you have no competing offers
  • Exit strategy weaknesses go unaddressed until the lender flags them as a reason to decline

Working With a Construction Financing Broker

  • Access to a network of private lenders, MICs, and alternative institutional lenders, many of whom do not accept direct applications
  • Your file is reviewed and structured before any lender sees it, so underwriting issues are resolved upfront
  • Competing term sheets create pricing tension that works in your favour on rate and fees
  • Your exit strategy is stress-tested before submission, which is the single most important factor in bridge loan approval
Our Process

From First Conversation to Funded Bridge Loan

Bridge loans move fast by design. Our process is built to match that speed while making sure nothing falls through the cracks.

Step 1

Tell Us About Your Deal

We start with a conversation about the property, the opportunity, and the timeline. We review the asset, the capital need, and your intended exit (sale, refinance, or construction completion) to confirm bridge financing is the right tool and to identify the lender category that fits your deal.

Step 2

We Structure and Package Your Application

We organize your property details, financial information, and exit strategy into a submission that bridge lenders can assess and approve quickly. We address potential underwriting issues before the file leaves our desk, not after a lender flags them.

Step 3

Lender Sourcing and Term Sheets

We present your deal to the bridge lenders best suited to your property type, loan size, and timeline. As term sheets come back, we compare them side by side on rate, fees, term, and conditions so you can make an informed decision.

Step 4

Due Diligence, Legal, and Closing

Once you select a lender, we coordinate the appraisal, environmental review, title work, and legal documentation. We manage the lender’s conditions and keep the deal on track through to funding, typically within 2 to 4 weeks for straightforward transactions.

Bridge Loan Scenarios

Common Commercial Bridge Loan Scenarios

Bridge financing is not one-size-fits-all. Each deal has a different timing gap, a different asset, and a different exit. Here are the scenarios we work with most frequently.

Acquisition Before Sale

You have identified a property to buy, but the proceeds from your existing asset have not arrived yet. A bridge loan provides the capital to close the acquisition now. The loan is repaid when your current property sells.

Construction-to-Permanent Gap

Your construction loan is maturing, but the building is not yet stabilized enough to qualify for conventional term financing or CMHC insurance. A bridge loan covers the gap until occupancy and income reach the thresholds your permanent lender requires.

Value-Add Acquisition

You are purchasing a commercial property specifically because it is underperforming, vacant, or in need of repositioning. Conventional lenders will not touch it until the work is done. A bridge loan funds the acquisition so you can execute your improvement plan and refinance once the property is stabilized.

Maturing Loan Replacement

Your existing commercial mortgage is coming due and you need more time to arrange permanent financing or complete a sale. A bridge loan replaces the maturing debt and gives you a defined runway to execute your exit without the pressure of an imminent maturity date.

Refinance Gap

You are in the middle of a commercial refinance or portfolio restructure, but the timeline on your new financing does not align with your current loan maturity. A bridge loan fills the gap so you are not forced into unfavourable terms under deadline pressure.

Lease-Up Financing

Your recently completed or recently acquired property is partially occupied and generating income, but not yet at the occupancy level required for institutional term financing. A bridge loan provides capital during the lease-up period until the property reaches stabilization.

Markets

Where We Source Bridge Financing Across Canada

Bridge lending terms and lender availability vary by province. We source bridge loans in the three markets where we have the deepest lender relationships.

Commercial Mortgages in British Columbia

British Columbia

Bridge lending is active across BC’s major commercial markets. Vancouver, Surrey, Burnaby, Victoria, Kelowna, and the Fraser Valley all see regular bridge transactions for multifamily, industrial, retail, and mixed-use properties. BC’s strong property values support solid LTV ratios, and the province’s active development market creates consistent demand for bridge capital to cover construction-to-permanent gaps and value-add acquisitions.

Commercial Mortgages in Alberta

Alberta

Alberta’s commercial real estate market offers strong bridge lending opportunities, particularly in Edmonton and Calgary. Higher cap rates relative to other provinces mean bridge lenders can offer competitive LTV on income-producing and transitional assets. Red Deer, Lethbridge, and Grande Prairie also see bridge activity for industrial and multifamily properties. Alberta’s shorter power of sale timelines give lenders additional comfort, which can translate to better terms for borrowers.

Commercial Mortgages in Ontario

Ontario

Ontario is the largest commercial bridge lending market in Canada. Toronto, Ottawa, Hamilton, London, Mississauga, and the GTA see high volumes of bridge transactions across all property types. Ontario’s power of sale framework (rather than foreclosure) is the enforcement mechanism most bridge lenders prefer, which contributes to deeper lender competition and more competitive pricing in the province.

Why Cedar Commercial

A Broker Built for Time-Sensitive Deals

Bridge deals do not wait. The broker you choose needs to move as fast as the transaction requires. Here is why borrowers across Canada work with Cedar Commercial on bridge financing.

We Know Who to Call

Bridge lending is a relationship-driven market. We maintain active relationships with private lenders, mortgage investment corporations, and alternative institutional lenders across Canada. When your deal needs to close in weeks, we already know which lenders are active, what they are looking for, and how fast they can move.

We Stress-Test Your Exit

The exit strategy is the single most important factor in bridge loan approval. Before we submit your file to any lender, we review your exit for credibility, timeline, and risk. If there are gaps, we address them proactively rather than letting a lender use them as a reason to decline or reprice.

We Manage the Entire Process

From initial file preparation through appraisal coordination, lender conditions, legal documentation, and closing, we handle the full timeline. You have one point of contact who keeps the deal moving and keeps you informed at every stage.

Frequently Asked Questions

Straightforward deals with private lenders typically close in 2 to 4 weeks. More complex transactions or deals through alternative institutional lenders take 4 to 8 weeks. The biggest timeline driver is the appraisal (7 to 14 days). Engaging the appraiser immediately, before the term sheet is signed, is the single most effective way to compress the overall timeline. Borrower file completeness is the other major variable: arriving with a complete information package can save 5 to 10 business days.

Every bridge lender in Canada requires a credible, defined exit strategy before advancing funds. Strong exits include: a refinance where the property already qualifies for conventional financing (or a preliminary lender commitment is in hand), a sale where the property is listed or under agreement, or a construction take-out where CMHC or a term lender has issued a preliminary commitment. Weak exits rely on vague timelines, optimistic assumptions, or no advance lender engagement. Prepare a written exit memo covering how the loan will be repaid, by whom, on what timeline, and what the backup plan is if the primary exit takes longer than expected.

A bridge loan is defined by its purpose (bridging a specific timing gap) and its exit (a defined repayment event within 6 to 24 months). A private mortgage is defined by its source of capital (private individuals, family offices, MICs) and its ability to serve borrowers or assets that conventional lenders decline. The two overlap significantly since many bridge loans are funded by private lenders, and many private mortgages serve a bridging function. The distinction matters most when describing your situation to a broker or lender: focus on the gap you need to bridge and how you intend to repay rather than the product label.

Most lenders will consider an extension if your exit is still credible but the timeline has slipped. Extensions typically cost a fee as a percent of the mortgage amount, payable upfront, plus continued interest at the contract rate. If the loan matures without repayment or extension, the lender can invoke default interest provisions (typically 2 to 5 percentage points above the contract rate) and ultimately enforce the mortgage security. In Canada, enforcement follows provincial law: foreclosure in BC and Alberta, power of sale in Ontario. Borrowers should model the downside scenario before committing: what does the loan cost if your exit takes six months longer than planned, and is there a secondary exit that still covers the balance?

Bridge lending approval is driven more by asset quality and exit viability than by income verification or credit score alone. Eligible properties include multifamily residential, retail, industrial, office, mixed-use, and land with near-term development potential. Borrower profiles range from experienced investors acquiring transitional assets to developers managing construction-to-permanent gaps to business owners who need capital quickly. Borrowers with non-standard income documentation or recent credit events may find bridge lending more accessible than conventional channels, provided the asset and exit strategy are sound. The key underwriting factors are the loan-to-value ratio, the credibility of the exit, the borrower’s relevant experience, and the complexity of the transaction.

Yes. This is one of the most common applications of bridge lending. The bridge loan funds your new acquisition; the loan is repaid when your existing property sells. Lenders are comfortable with this structure when the exit is well-defined. The strongest applications include a signed purchase agreement on the existing property, substantial equity in the asset being sold, and a bridge term that exceeds the realistic sale timeline by several months. If your existing property is already under agreement, bring that document to the lender conversation. It transforms the exit from a projection into evidence and can improve both your approval timeline and pricing.

When there is no current income, bridge lenders shift their underwriting to three questions. First, what is the asset worth today in its current condition? The LTV test is applied against the as-is appraised value, not the projected value after improvements. Second, what is the stabilized income potential, and is it supported by market comparables or signed letters of intent? Third, how executable is the improvement plan, and does the borrower have a track record of completing similar projects? The exit on a value-add bridge deal is typically a refinance to conventional or CMHC term debt once stabilized, so the borrower must demonstrate that the improvement plan leads to the income and occupancy thresholds the intended permanent lender requires.

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