– Short Term Financing Gap: HELOC vs. Bridge Loan. The underwriting process can be handled in advance and your costs should be only a few hundred dollars (or even at no cost) in order to proceed with the loan. The interest rate paid on the line is typically based on the prime rate index +/- a fixed margin that is based on your credit rating.
Closing Costs – RBC Royal Bank – Below are some of the one-time closing costs you may need to pay: Default. Bridge Financing. Most lenders expect the first mortgage payment one month after closing the purchase. If you close mid-month, however, some lenders expect the first payment, or at least the interest accrued during.