What is Bridging Finance?
Found your dream home, but haven’t sold your current property yet?
Rather than miss the opportunity, consider a Bridging loan.
What is a Bridging loan?
Just as it sounds, a Bridging loan can assist you bridge the gap between the finance of your current property and your next property purchase.
Designed as a short-term finance solution, a Bridging Loan can be an ideal solution to secure your property purchase while still selling or settling the sale of your existing property.
Generally, a Bridging Loan will give you up to 6 months to sell your existing home, or up to 12 months to complete construction of a new home.
How does it work?
In simple terms, Lenders take over the mortgage of your current property and finance the purchase of your new property. The debts are combined and if required, can also include any additional purchase costs that may be associated with your new home like stamp duty and legal fees. Repayments of the combined debt are often calculated at interest only. When the first home is sold, the net proceeds will be used to reduce what had become the combined debt value. The outstanding debt amount, then becomes your new mortgage from then on.
What are the Benefits?
Flexible & Convenience
100% loan on your NEW property purchase
Things to consider
Fees & Eligibility
Timing of the sale
LMI may be required
How long does Bridging finance take?
Usually, it takes around 5 days to be approved.
Interested? Contact us to get started on a Bridging loan
enquiry and make your dream home a reality!