Fredericton Bridge Loan: Buyer Walked on Closing Day
At Keystone MIC, we help homeowners and real estate investors move forward quickly and with flexibility. Our latest funded deal in Fredericton, New Brunswick shows how a private bridge loan can keep a home purchase on track when a sale falls apart at the last minute.
Deal at a glance
Location: Fredericton, NB
Loan type: Bridge purchase loan (first mortgage)
Loan amount: $515,000
Loan-to-value: 49%
Term: 6 months
The Situation
A Fredericton homeowner had sold her mortgage-free property for $555,000 and made a firm cash offer on a new home closer to family. Then the buyer walked away on closing day. With the purchase of the new home scheduled to close just eight days later, she needed a fast way to bridge the gap.
Our Solution: A Fredericton Bridge Loan
We provided a $515,000 first mortgage secured against both properties, which had a combined value of $1.05 million. At 49% loan-to-value, there was significant equity behind the loan and enough capital to complete the purchase on schedule. Because the loan was backed by strong real estate security, the file came down to the property and the exit, not a lengthy bank-style qualification process.
The Exit Strategy
The original property went back on the market, attracted multiple offers and sold within a week. That strong marketability gave the bridge loan a fast, clean exit.
Why It Matters
Sometimes private lending isn’t about fixing a credit problem. It’s about fixing a timing problem. Strong equity, marketable real estate and a clear exit can create options when a conventional transaction suddenly falls apart.
Bridge Loans in Fredericton, New Brunswick and Across Atlantic Canada
Buying and selling at the same time rarely lines up perfectly. A buyer can back out, financing can fall through or a closing date can shift, and your purchase deadline doesn’t move with it. A bridge loan, also called bridge financing, is a short-term mortgage that covers the gap until your sale closes or your property sells. Keystone funds bridge loans in Fredericton, Saint John and across New Brunswick, as well as throughout Nova Scotia, Prince Edward Island and Newfoundland and Labrador, with terms based on the property, the equity and a clear exit.
Bridge Loan FAQs
What is a bridge loan? A short-term loan secured by real estate that covers the gap between buying a new property and selling an existing one.
What happens if the buyer of my home backs out? If you’re still committed to your purchase, you may need funds to close on time. A bridge loan secured by the equity in your properties can cover the closing while you relist or find a new buyer.
How long is a bridge loan? Bridge loans are short-term by design. In this case, the term was six months, and the exit was the sale of the original property.
Need a bridge loan in New Brunswick or Atlantic Canada?
Reach out to our team. We’re happy to help.
📩 contact@keycap.ca | 📞 902-818-5262
