Does the bridge loan count in my debt ratio?

Banks may neutralize the bridge charge and the current loan on the property being sold in the effort rate calculation, provided the bridge loan-to-value stays conservative (at most 80%). It is an HCSF doctrine point that brokers use to get buy-then-sell files approved.

Dry bridge or backed bridge: what is the difference?

A dry bridge finances the purchase alone, when the new property costs less than the advanced value: banks price it higher as it comes with no long-term loan. A backed bridge combines with an amortizing loan to finance a more expensive property: it is the most common structure, often with payment smoothing.

How can the bridge cost be limited?

Three levers: sell fast (the cost is proportional to duration), choose the franchise suited to your cash flow, and negotiate rate and loan-to-value by putting banks in competition. A broker presenting a file with a signed sale agreement and quantified resale scenarios gets much better terms: that is exactly what CourtImmo produces.

Indicative estimate

Bridge loan calculator

Buying before you have sold? A bridge loan advances part of your current property’s value while waiting for its sale. This calculator computes the amount you can mobilize based on the bank’s loan-to-value, the interest cost by resale month and chosen franchise, and what you will have left depending on the price actually obtained.

Your situation

Value of the property being sold (€)

€

Outstanding capital on this property (€)

€

Advance loan-to-value (%)

Usually 60 to 70%, up to 80% with a signed sale agreement.

Bridge loan rate (%)

Expected months before resale

Franchise

Bridge amount

€170,000

Interest cost

€7,810

Debt to clear at resale

€177,810

Equity recovered by sale price

At the estimated price (€300,000)€82,190
Haircut of 10% (€270,000)€52,190
Haircut of 20% (€240,000)€22,190

How is the bridge amount set?

The bank advances a share of the value of the property being sold, usually 60 to 70%, up to 80% when a sale agreement is already signed, minus the outstanding capital of loans on that property. The conservative loan-to-value protects against a slower or cheaper resale than hoped. The retained value relies on an agency estimate, an appraisal or comparable sales data.

Partial or total franchise: what cost?

With a partial franchise, you pay the bridge interest every month: the cost grows linearly with time. With a total franchise, you pay nothing during the period (at most 24 months in practice): interest is capitalized and adds to the debt cleared at resale, with a snowball effect. Total franchise preserves monthly cash flow but costs more for the same duration.

The real risk: the resale

The scenario to secure is a resale below the estimate: the calculator quantifies the equity recovered at the estimated price, then with 10% and 20% haircuts. If the resale does not cover the bridge debt, the balance must be refinanced. This is why banks often neutralize the bridge charge in the effort rate only when the loan-to-value stays under 80%.

Frequently asked questions

The bridge can generally be extended once (12 additional months at most). Beyond that, the bank may require converting the bridge into a standard amortizing loan, which durably increases payments. Adjusting the sale price early almost always costs less than carrying the bridge for extra months.

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Indicative estimate. Results are provided for information only, based on dated scales, with no contractual value. They are neither a credit offer nor personalized advice. No entered data is stored or transmitted. A loan commits you and must be repaid: check your repayment capacity before committing.