What private lenders and bridge loans are
A private lender is a company or individual that lends money outside the big banks. A bridge loan is short-term money that covers a gap: it bridges the time between one point and another, such as starting a project before your main financing is ready.
This kind of money is faster and more flexible than a bank loan. The trade-off is that it costs more and is meant to be paid back quickly.
Typical BC figures as of 2026
The numbers below are general ranges for BC as of 2026. They change with the market and with each borrower's situation, so treat them as a guide, not a quote.
- Interest rates of roughly 9% to 13% per year, higher than a bank mortgage.
- An upfront fee of about 1% to 3% of the loan amount, paid when the loan starts.
- Terms of about 6 to 18 months, since this is short-term money.
- Faster approval and more flexible conditions than a bank, in exchange for the higher cost.
When to use it
Use a bridge loan to solve a timing problem. Common cases are starting site work before your construction loan closes, buying a lot quickly before someone else does, or covering a short gap while a longer-term loan is arranged.
The key idea is that a bridge loan is a bridge, not a destination. You take it with a clear plan to pay it off from a known source, such as a bank construction loan, the sale of a unit, or long-term financing that lands soon after.
The risk of leaning on it too long
The danger is treating short-term money as if it were long-term. At 9% to 13% per year the cost adds up fast, and it can eat into your project profit if the loan runs longer than planned.
If your exit plan slips, for example a sale that does not close or a bank loan that falls through, you can be stuck paying high interest with no clear way out. Always know exactly how and when you will repay before you sign. This is general information, not financial advice.
How it fits in the capital stack
The capital stack is simply the mix of money that pays for a project: your own equity, a main loan, and sometimes extra short-term loans on top. A bridge loan usually sits as a short-term layer that gets you moving until the larger, cheaper money arrives.
A common pattern is your own equity first, then a bank or credit union construction loan for the bulk of the cost, with a bridge loan filling a timing gap. Some BC credit unions offer multiplex construction mortgages up to about 80% of project cost with interest-only payments during the build, which can reduce or remove the need for a bridge. These figures are examples as of 2026 and change with the market.