Bridging finance – What you need to know

Are you ready to build or buy now, but haven’t yet sold your current property? Bridging finance could be the answer to keep the ball rolling.

 

If you are trying to sell one property and buy another it can be quite a daunting and an emotional process, especially when the timelines of both projects don't match up perfectly. It is not uncommon for our clients to be a bit nervous or anxious because they don’t quite understand the process, so we sit down with those clients and explain the pro’s and con’s at the initial stage. It is important to plan out the bridging loan with us to be sure it suits your needs, this will avoid a lot of frustration and confusion during the process. 

 

A bridging loan is usually just an extension of the loan amount on a regular home loan, and it can cover the purchase price or construction costs of a new property while your old one is on the market for sale. 

 

Most lenders offer a period of interest-only repayments on bridging loans, allowing borrowers to get into their new home sooner without having to start paying off a full mortgage before selling the old one.

 

We will negotiate the interest rates and fees with the selected financier so that when the bridging period is completed you are then not having to refinance and change lenders. 

 

There are only a handful of lenders that offer this type of finance so to guarantee it is a success and a smooth transaction speak to us prior to any application. 

 

If you would like further information on bridging finance please contact the team at Finance Prospects today on 8344 9933 or email jessica@financeprospects.com.au