Bridging Home Loans
Are you worried about financing your new home if your current one doesn’t sell in time? If so, don’t fret, there’s a solution called a bridging home loan.
How does bridging finance function?
A bridging home loan streamlines the transition between properties, allowing you to buy your new home while waiting for the sale of your current one to finalize. Essentially, it covers your financial needs when the settlement dates for selling and purchasing differ.
Bridging finance may extend for up to 12 months in some cases, with repayment terms varying depending on the lender. Typically, payments are interest-only. While you might not be obligated to make payments during the interim, it’s advisable to do so to manage your loan commitments effectively.
When is a bridging loan suitable?
Bridging loans prove beneficial in various relocation scenarios, whether moving to an existing property or constructing a new one. They spare you the inconvenience and expense of temporary rental accommodations, allowing you to remain in your current residence until your new one is ready. After completion, you transition to the new home and place your old one on the market.
Key Considerations for Bridging Finance
Some individuals might encounter challenges selling their current property, leading to significant interest accumulation on the bridging loan. Additionally, certain applicants may lack adequate equity in their homes to qualify for this type of financing.
Our experienced mortgage brokers can provide further insights into bridging home loans and help determine if it’s the right choice for you. Reach out to us today to explore your options.
