Acquisition Bridge
Bridge financing for acquiring apartment buildings. Allows you to close quickly without conventional lender timelines or occupancy requirements.
- Quick underwriting
- 12-24 month terms
- Minimal prepayment penalties
Bridge Loans for Apartment Buildings
Acquire, stabilize, and renovate apartment buildings with short-term bridge financing. Bridge loans provide the speed and flexibility to close multifamily deals quickly, then transition to permanent CMHC financing once the property is stabilized.
Speed to Close, Flexibility to Execute
Bridge loans are the ideal financing tool for value-add multifamily deals. Whether you're acquiring a vacant building, stabilizing occupancy, or funding renovations, bridge financing gets you to closing quickly and positions your property for permanent takeout. Common bridge terms for apartment buildings range from 12-24 months at 7-12% interest.
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Speed of Execution
Close in 2-4 weeks. Move quickly on multifamily opportunities without lengthy underwriting delays.
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Value-Add Financing
Finance acquisitions and renovations simultaneously. Increase rents and occupancy to force appreciation.
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Vacant Building Acquisition
Acquire vacant or significantly underoccupied buildings and stabilize them during the bridge term.
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Construction Funding
Fund major renovations, unit upgrades, and common area improvements during the bridge period.
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CMHC Exit Strategy
Build in the takeout to permanent CMHC financing once occupancy and rent rates meet permanent lender standards.
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Flexible Underwriting
Less stringent on occupancy and DSCR. Lenders focus on the exit strategy and property upside potential.
Have a value-add multifamily deal?
Bridge Loan Solutions
Flexible bridge financing for every multifamily acquisition strategy.
Stabilization Bridge
Finance the period while you increase occupancy, optimize rent rates, and improve operations before permanent takeout.
- Interest-only payments available
- No DSCR requirements
- Flexible exit timeline
Renovation Bridge
Bridge financing specifically for value-add renovation projects. Covers acquisition plus construction and improvement costs.
- Construction-style draws
- Renovation-focused underwriting
- Takeout to CMHC upon completion
How Much Can You Finance on Multifamily?
Bridge Loan Requirements for Apartment Buildings
Bridge lending focuses on your exit strategy, equity position, and the asset fundamentals.
Requirements
- Clear and documented exit strategy to permanent CMHC or conventional financing.
- Current property appraisal or market valuation by the bridge lender.
- Borrower net worth of $500k+ (amount varies by deal size and leverage).
- Minimum 20-25% equity injection (75-80% LTV maximum).
- Comprehensive property condition assessment and market rent analysis.
- Detailed acquisition details, business plan, and stabilization timeline.
How We Help
- Rapid pre-approval and term sheets within 3-5 business days.
- Strategic guidance on maximizing property upside and exit timing.
- Coordination with permanent lenders for smooth CMHC takeout.
- Flexible structures including interest-only, modified amortization, and construction draws.
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Questions About Bridge Loan Solutions
Everything you need to know about bridge loan solutions.
Bridge-to-CMHC Strategies
Months 1–2: close the bridge. Months 2–12: execute renovations and stabilize occupancy toward 90%+. Months 10–12: assemble the CMHC takeout with T-12 financials. Months 12–14: close permanent financing and repay the bridge.
Most CMHC programs want about 85–90% stabilized occupancy with T-12 operating history. Some lenders will look at takeout around 75–80% occupancy when rent growth and remaining lease-up are well documented. Vacant buildings stay on bridge until those tests are met.
The takeout typically refinances the bridge balance plus earned equity into the CMHC permanent loan in one closing. If appraisal and NOI support it, a cash-out component can be included. You do not usually write a separate cheque to pay the bridge first.
Terms & Costs
Typical structures are 75–80% LTV (20–25% equity in), 12–24 month terms, and 7–12% interest, often interest-only. Borrower net worth and a documented CMHC or conventional exit are part of the underwrite, not just the cap rate.
Term sheets often come in 3–5 business days. Funding is commonly 2–4 weeks from a complete package — faster than a 45–90 day CMHC close, which is why bridge exists for auction and off-market deals.
Most multifamily bridges have light or no lockout so you can take out as soon as the property is ready. Confirm the minimum-interest or exit-fee language; a 3–6 month minimum interest is more common than a residential-style IRD.
Bridge Financing Basics
Use bridge financing when you need speed (2–4 week closing), when a property is vacant or significantly underoccupied, or when you are doing a value-add renovation. Bridge is built for opportunistic acquisitions where a CMHC or conventional file cannot underwrite occupancy yet.
Bridge loans typically price 3–5% higher than permanent debt — often 7–12% versus roughly 4–7% on a stabilized conventional or CMHC loan. Terms are 12–24 months, usually interest-only, with leverage around 75–80% LTV. The premium is for speed and flexibility; you refinance to permanent within that window.
Bridge Financing Basics (Continued)
Most bridge loans allow 1–2 extension periods (typically 3–6 months each) for an extension fee. Plan the timeline conservatively, keep the lender updated, and do not assume an extension is automatic if occupancy or draws are off track.