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Bridging Loans
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What are
they?
 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
You can buy or build your new home before
you sell your existing home.
You can avoid moving into a rental
property and move directly into your new
home.
Disadvantages
Interest is charged on the full amount of
the new loan.
If you dont sell your existing home
quickly, the interest bill can really add
up.
It may force you into selling your
existing home at a price lower than you want
to.
You must have sufficient equity in your
existing property to support the purchase of
both.
For more information about
bridging loans
contact us or call
1300 726
136
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