Bridging loans can help you buy a new home before you sell.
Explore the pros and cons and decide if a bridging loan is right for you.
In the right circumstances, bridging loans can help with the transition from one home to another, without you having to sell first.
Find out whether it’s a good option for you.
How does a bridging loan work?
Most people sell their old home first, and then buy their new home with the available equity.
But there are times when buying first may suit you better.
Put simply?
A bridging loan provides you with the funds you need to buy your new home before you’ve sold your current property.
Example
Let’s say you’ve found the house you want, but haven’t sold the one you’re in.
You’ll need finance to meet the gap between receiving funds from the sale of your existing home and buying your new property.
It’s essentially giving you a line of credit to cover the ‘bridge’ between purchasing the new property and receiving settlement funds on the old.
But it’s important to remember that you’ll need to pay your original home loan and the bridging finance loan at the same time.
You’ll have to show evidence that you can repay the bridging finance interest costs during the period between buying and selling.
Once you’ve sold your property, you’ll have 12 months to repay the cost of the ‘bridge’.
Want to find out if you are eligible for a bridging loan?
Contacts us @ propertyloans@realrenta.com and we will arrange for a lending specialist from our trusted finance partner to contact you.
Marlene Liontis & Jason Gwerder
Sunday, 14 October 2018
