Short answer
Prepare the existing mortgage statement and contract, a current payout or penalty estimate, firm sale and purchase agreements, proof that conditions were removed, property-tax details, deposit proof, income documents and a clear source-of-funds trail. The lender may request more.
Why this becomes a closing problem
The client assumes the old lender already has everything. A port or bridge is tied to a new property and new transaction, so stale income records or a missing firm-sale document can hold up the lawyer’s funding instructions.
A practical example
A purchase closes in twelve days and the sale closes five days later. The permanent mortgage is approved, but the bridge is not because the lender has not received the firm sale agreement, old mortgage payout statement and lawyer information. The missing bridge approval, not the first mortgage, now threatens closing.
How the lending routes may differ
- A lender: submit a complete port or bridge package early enough for appraisal, income review and lawyer instructions.
- Alternative/B lender: add business bank statements, T1 Generals, financial statements or other income evidence required by the selected program.
- MIC or private lender: provide current property values, mortgage statements, tax status, exit evidence and enough time for independent legal advice.
Policy boundary: Porting, bridge periods, qualification, fees and property acceptance are lender and contract decisions. A regulator’s consumer information does not require every lender to approve the same structure.
Questions to ask before committing
- Are both agreements signed and is the sale firm?
- Is the down payment coming from sale equity, savings, a gift or borrowing?
- Has income, credit, employment or debt changed since the last approval?
- Does the lawyer have instructions for the first mortgage and any bridge or second mortgage?
Rajiv’s practical view
Send both agreements and both closing dates to your broker before making assumptions about the available equity. The earlier the file is complete, the more time there is to compare a standard bridge with a backup route.
Before making a firm offer or changing closing dates, confirm the full structure in writing. A pre-approval or verbal discussion is not the same as final approval of the borrower, property, sale, bridge amount and lawyer instructions.
Continue your research
Review renewal and switching guidance · Review closing-problem guidance · Explore the Mortgage Knowledge Centre
Moving dates or mortgage terms do not line up?
Share your sale date, purchase date, existing mortgage balance and the problem you are trying to avoid. Rajiv can compare the current lender’s port with A, alternative/B, MIC or private options where appropriate.
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Rajiv Verma, Mortgage Broker · Ontario