Bridging Home Loans

Buying a property before you sell existing property...

Bridging loans arise when you buy or build another property before you have sold your current property. This can simplify the transition between properties.

If your home is for sale and you find a property to buy, or wish to build the lender advances the money so you can purchase your new home.

Depending on the equity in your current home, you may be able to include all the fees too. The interest charged to your loan can be paid by you or capitalised (added to the loan amount). When your original property is sold, the proceeds are deposited to the new loan. The amount owing becomes your end loan and normal repayments commence. 

Advantages	Disadvantages
• You can buy or build a new home before you sell the    existing one • Avoid moving into a rental property avoiding moving fees	• Interest is charged on the peak debt • Delays in selling existing home can incur significant   interest costs • May force you into selling your property at a lower price • Must have sufficient equity in existing home and to be   able to service both loans

 

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Need Help?

Submit a mortgage quote to find out which lenders offer bridging loans with the low cost features and fees as fully featured loans we recommend that you contact one of our mortgage professionals.

They can show you all the all the hidden costs and restrictions as well as show you the most reputable lenders to choose from.

 

Mortgage Quot