Bridging Loans
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Bridging Loans
Access quick, flexible bridging loans to cover short-term funding gaps and transition smoothly
A bridging loan provides the flexibility to purchase a new property before selling your existing one, which can be crucial in a competitive market. It helps bridge the gap between buying and selling, ensuring you don’t miss out on your ideal property.
Benefits:
- Align property settlements for greater control and reduced stress
- Useful if you can’t manage two home loans simultaneously
- Potentially borrow up to 100% of the purchase price (conditions apply)
Risks:
- Daily interest accrual means higher costs if your property sale is delayed
- Selling for less than expected can result in a higher loan balance
- Failure to sell within 12 months may lead to default, potentially resulting in the loss of your property and additional financial liability
- Carefully consider these factors to determine if a bridging loan is right for your situation.
FAQ
A bridging loan is a short-term loan designed to help you finance the purchase of a new property while you’re still in the process of selling your current one. It "bridges" the gap between your existing mortgage and the new loan, allowing you to secure your next home without having to wait for your current property to sell. Once your existing property is sold, the proceeds are typically used to pay off the bridging loan.
Bridging loans are generally short-term, with terms ranging from a few months to a maximum of 12 months, depending on your lender and circumstances. The exact duration can vary based on your specific needs and the time it takes to sell your current property. It’s important to have a clear exit strategy, such as the sale of your existing home, to repay the loan within the agreed timeframe.