Bridge Loans in New Brunswick

What is a bridge loan in New Brunswick?

A bridge loan in New Brunswick is a short-term secured loan that covers the financial gap between your new home purchase closing date and the date your existing home sale closes, regulated under the Mortgage Brokers Act, S.N.B. 2014, c.41 and administered by the Financial and Consumer Services Commission (FCNB). In New Brunswick, every person carrying on the business of brokering or administering mortgages must comply with the Mortgage Brokers Act and the associated rules MB-001 (Mortgage Brokers Licensing and Ongoing Obligations) and MB-002 (Mortgage Brokers Fees). The FCNB enforces these requirements, including mandatory best-interest-of-borrower obligations, educational standards, and full cost-of-borrowing disclosure under the Cost of Credit Disclosure and Payday Loans Act. New Brunswick distinguishes between mortgage brokerages, mortgage brokers, and mortgage associates, each with distinct licensing obligations. A typical New Brunswick scenario works like this: you find a new home in Moncton, Fredericton, or Saint John, make an offer, and lock in a closing date, but your current home has not yet sold. Your equity is real but not yet liquid. A bridge loan converts that trapped equity into cash so your purchase closes on time. New Brunswick's housing market makes bridge financing particularly accessible compared to other provinces. The MLS HPI composite benchmark price reached $330,300 in February 2026, according to data from the New Brunswick Real Estate Association (NBREA), representing a 5.2% year-over-year increase. That figure is roughly 60% below the GTA average and 65% below Greater Vancouver, meaning bridge loan amounts in New Brunswick tend to be smaller and the associated interest costs lower in absolute terms. The average sale price in February 2026 was $352,045, with regional variation: Fredericton averaged $378,745, Moncton $405,583, and Saint John $352,795. New Brunswick's real property transfer tax is a flat 1% of the greater of the assessed value or the purchase price. This is one of the simplest transfer tax structures in Canada: no progressive brackets, no municipal surcharges, no tiered calculations. On a $350,000 home, you pay $3,500. Compare that to Ontario's layered provincial and municipal taxes or BC's graduated Property Transfer Tax, and the advantage is clear. Lower closing costs mean less cash required at closing, which can reduce how much bridge financing you need. New Brunswick is Canada's only officially bilingual province, and bridge loan borrowers can access services in both English and French from lenders, lawyers, and the FCNB. This is especially relevant for francophone homeowners in northern and eastern New Brunswick communities who may prefer to conduct their real estate transactions in French. Bank bridge loans in New Brunswick require a firm, unconditional sale agreement on your existing home before funds are released. New Brunswick credit unions such as UNI Financial Cooperation (170,000 members, $5.3B in assets, Canada's first federally chartered credit union and the largest Acadian financial institution) may offer more flexible qualifying criteria, particularly for francophone members in the Acadian Peninsula and Madawaska regions. Private lenders approve bridge loans without a firm sale, typically within 48 hours, but charge higher rates and fees to reflect the added risk. The federal criminal interest rate cap, reduced to 35% APR as of January 1, 2025 under Criminal Code, Section 347, protects New Brunswick borrowers from predatory bridge lending rates. Any bridge loan exceeding 35% APR is a federal criminal offence.

What types of bridge loans are available in New Brunswick?

• Bank bridge loans, offered by the Big 5 banks (TD, RBC, Scotiabank, BMO, CIBC) to existing mortgage clients. These carry the lowest rates at prime + 2% to 3% (roughly 6.45% to 7.45% at the current Bank of Canada prime rate), but require a firm, unconditional sale agreement on your existing home and a maximum term of 90 to 120 days
• New Brunswick credit union bridge loans from lenders such as UNI Financial Cooperation (the largest Acadian financial institution with 42 branches across New Brunswick) and other provincial credit unions regulated under provincial legislation and supervised by the FCNB. These often provide bilingual service, flexible qualifying terms, and personalized attention compared to national banks
• Private bridge loans for New Brunswick borrowers who do not have a firm sale or who do not qualify with a bank or credit union. Private lenders offer bridge financing from $25,000 to $1.5M+, with approval in as little as 48 hours, at rates of 8% to 12% plus lender fees of 2% to 5%
• Open bridge loans with no fixed repayment date within the maximum term. These suit New Brunswick borrowers whose existing home's sale closing date is not yet confirmed, and carry slightly higher rates than closed bridge loans
• Closed bridge loans with a specific repayment date tied to your confirmed sale closing. These carry lower rates because the lender has certainty on when repayment will occur
• Inter-provincial bridge loans for borrowers relocating to or from New Brunswick. The Maritime provinces see significant inter-provincial migration, and bridge financing can cover the gap when buying in one province while selling in another, though the lender will need appraisals and legal work in both jurisdictions

Who qualifies for a bridge loan in New Brunswick?

• ✓New Brunswick resident at least 19 years of age (New Brunswick's age of majority) with valid government-issued photo identification
• ✓Sufficient equity in your existing New Brunswick home. Lenders calculate available equity as the confirmed sale price (or appraised value) minus the outstanding mortgage balance and estimated closing costs including the 1% real property transfer tax
• ✓A signed purchase agreement on your new home confirming the closing date and the amount of bridge financing required
• ✓For bank and credit union bridge loans: a firm, unconditional sale agreement on your existing home. Private lenders may waive this requirement
• ✓A credit score of 650 or higher for bank and credit union bridge loans. Private lenders focus primarily on property equity and may approve borrowers with lower credit scores at higher rates
• ✓Verifiable income sufficient to carry your existing mortgage and the bridge loan interest payments simultaneously during the overlap period
• ✓Homeowner's insurance on both properties active during the bridge period
• ✓No active bankruptcy or undischarged consumer proposal

What do bridge loans cost in New Brunswick?

In New Brunswick, bank bridge loans cost prime + 2% to 3% in interest (approximately 6.45% to 7.45% at the current prime rate of 4.45%), while private bridge lenders charge 8% to 12% with additional fees of 2% to 5% of the loan amount. Legal fees to register the bridge loan against your property through Service New Brunswick's Land Registry typically add $700 to $1,100. Bridge loan amounts in New Brunswick typically range from $25,000 to over $1,000,000, depending on the equity in your existing home. Most lenders advance up to 80% of available equity, calculated as the confirmed sale price minus the outstanding mortgage balance and closing costs. Worked example: Moncton move-up buyer Purchasing a $405,000 Moncton home while selling an existing $300,000 home with a $170,000 mortgage outstanding: - Available equity: $300,000 minus $170,000 minus closing costs (~$3,000 NB real property transfer tax at 1% + $7,000 legal and real estate fees) = approximately $120,000 - Bridge loan amount: up to ~$120,000 - Bank bridge interest at 7.0% over 90 days: $2,100 - Legal fees: $700 to $1,100 - Total estimated cost: $2,800 to $3,200 Worked example: Fredericton family upsizing Purchasing a $378,000 Fredericton home while selling a $280,000 home with a $150,000 mortgage: - Available equity: $280,000 minus $150,000 minus closing costs (~$2,800 NB transfer tax + $6,500 other costs) = approximately $120,700 - Bridge loan amount: up to ~$120,000 - Bank bridge interest at 7.0% over 90 days: $2,100 - Total estimated cost: $2,800 to $3,200 Compare these costs to Ontario, where the bridge loan on a $1M+ GTA purchase easily exceeds $7,500 in interest alone. New Brunswick's lower property values translate directly into lower absolute bridge financing costs, even when the interest rate percentage is identical. New Brunswick's flat 1% real property transfer tax on a $350,000 purchase is $3,500. Unlike Ontario and BC, there are no progressive brackets, no municipal surcharges, and no additional city-level transfer taxes. This simplicity keeps closing costs predictable and among the lowest in Canada. New Brunswick charges 15% HST (5% federal GST + 10% provincial) on newly constructed homes. The federal portion qualifies for a GST New Housing Rebate of up to $6,300 on homes under $450,000, but there is no provincial HST rebate on new construction in New Brunswick. If your bridge-financed purchase involves a new build, factor the HST into your total closing costs. The Bank of Canada held its policy rate at 2.25% through early 2026, keeping bridge loan rates historically reasonable. Interest on bridge loans for your primary residence is not tax-deductible in Canada. If the bridged property is an investment or rental, consult a tax advisor regarding potential deductibility. All lenders operating in New Brunswick must comply with the Cost of Credit Disclosure and Payday Loans Act, which requires that the true cost of borrowing is accurately disclosed in all contractual documents and advertising. Never proceed with a bridge lender who cannot provide this in writing.

Pros and cons of bridge loans in New Brunswick

Bridge loan options in New Brunswick compared

Tips for New Brunswick bridge loan borrowers

1. 1.Verify your lender or broker is licensed under the Mortgage Brokers Act before signing anything. The FCNB maintains registration records, and you can confirm a broker's status through the FCNB mortgage broker industry portal. Mortgage brokerages, brokers, and associates in New Brunswick are all required to be licensed. If a private bridge lender cannot show you a valid licence, do not proceed.
2. 2.Calculate your New Brunswick real property transfer tax before applying. The flat 1% rate makes it simple: on a $350,000 purchase, expect $3,500 in transfer tax, payable from your own funds at closing. Unlike Ontario or BC, there are no progressive brackets or municipal surcharges to factor in.
3. 3.If you are a first-time buyer, use every available program to reduce your bridge loan size. New Brunswick does not offer a provincial transfer tax rebate for first-time buyers, but the federal Home Buyers' Plan ($60,000 RRSP withdrawal per person) and the First Home Savings Account can meaningfully reduce the amount you need to bridge.
4. 4.Ask UNI Financial Cooperation or your local credit union about bridge financing before approaching a private lender. UNI, with 42 branches across New Brunswick and $5.3B in assets, serves 170,000 members and may offer terms more flexible than the Big 5 banks, particularly for members with established relationships. Francophone borrowers benefit from full French-language service throughout the process.
5. 5.Price your existing New Brunswick home accurately from day one. The NBREA benchmark price rose 5.2% year-over-year to $330,300 in February 2026, but overpricing still risks extended days on market that stretch your bridge period and drive up total interest costs.
6. 6.Compare the total cost of bridge financing against the cost of a temporary rental. In Moncton, a two-bedroom rental averages $1,300 to $1,600 per month. If your bridge overlap is less than 3 months, bridge financing is almost always cheaper than moving twice and renting between transactions.
7. 7.Ask your bank about bridge financing before applying elsewhere. Most major Canadian banks offer bridge loans to existing mortgage clients at rates tied to prime, often the lowest available option if you have a firm sale in hand.
8. 8.Have your New Brunswick real estate lawyer review all bridge loan documents before signing. Pay close attention to extension terms, penalty clauses, and whether the bridge loan creates a second mortgage registered through Service New Brunswick's Land Registry. Your lawyer can also confirm that the lender has properly disclosed the full cost of borrowing as required by the Cost of Credit Disclosure and Payday Loans Act.

Ready to apply?

Apply online with Sphera Credit for New Brunswick bridge financing. Our AI-powered review evaluates your equity, your closing timeline, and your full financial profile so you can move forward with confidence.