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So I heard a radio interview this weekend that I thought was interesting.
Because the market is slow, an increasing amount of offers now include a subject to sell clause.
For those who don't include a clause, there is an increasing number of people who have to turn to bridge financing to help close on the place they bought before selling their current place.
Little did I know, that for bridge financing they charge 2-3% just for paperwork. And then 9-15% interest. So if you're borrowing $1M for bridge financing, that's $20k just for applying.
They used an example of a couple in South Surrey who bought a house but couldnt' find a buyer for their current house in time. They had to get bridge financing for $2M for 45 days and it cost $500 per day in interest, not including paperwork charges.
I could be totally wrong. This is just what I heard on this podcast.
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