Below are some general guidelines for bridge loan qualifications. To determine whether you qualify for a bridge loan, please start an application or speak with a Mortgage Loan Officer. 

Financial Qualification Guidelines¹

• Credit Score of 680 or higher
• Loan-to-value (LTV) ratio up to 75% on your current home
• Debt-to-income ratio of 43% or less

Property and Occupancy Guidelines

• A bridge loan is most suitable for those buying a single-family home or condo as their primary residence. Speak with a Mortgage Loan Officer to understand whether a bridge loan may be right for you.  

Program Requirements

• Your current home must be listed for sale

• Your new home must be financed with a CSB mortgage

Some bridge loans require borrowers to carry both their existing mortgage and the new bridge loan simultaneously. If approved for a CSB bridge loan, the proceeds may be used to pay off your existing mortgage at closing. Rather than managing two mortgage payments, you may only need to make interest-only payments on the bridge loan for 12 months while your new mortgage is in place. This structure is designed to help simplify your finances during the transition.

The loan term is up to 12 months. Even if your home does not sell within that window, the full principal balance and any accrued interest will be due at maturity. Before applying, it's worth thinking through your local market conditions and discussing your timeline with a Mortgage Loan Officer to understand whether a bridge loan may be appropriate for your situation.

If you're approved and use the bridge loan to pay off your existing mortgage, you will not carry that mortgage payment during the bridge loan term. Instead, you can expect to be responsible for interest-only payments on the bridge loan plus the mortgage on their new home.

Yes. If your home sells ahead of schedule—whether that's one month in or eleven—you can pay off the bridge loan in full at any time without penalty. 

A bridge loan may be a good solution if:

• You found a new home you want to purchase but your current home hasn't sold yet
• You want to make a competitive offer without a home sale contingency
• You have at least 25% equity in your current home
• You are confident your home will sell within the next 6-12 months
• You need funds for closing costs or down payment on your new home
• You plan to finance your new home purchase with Cambridge Savings Bank

The CSB Bridge Loan is a 12-month short-term loan. During the term, you make interest-only monthly payments. The full principal balance, along with any accrued interest, becomes due when your current home sells or at the end of the 12-month term, whichever happens first. At the same time, you will have a separate CSB mortgage on your new home with its own standard repayment schedule.