Buying your next House?
Buy then Sell? Sell then Buy? Or use Equity to fund your new home? We take the time to work through all scenarios to get you to a comfortable plan
Ideal for those with strong savings or equity & incomes.
Only option for low savings or equity whilst being lowest risk.
Requires moderate savings or equity & moderate incomes.
Which strategy suits you best
There is no doubt that moving house is a pain. We take the time to work with you on your specific circumstances to achieve the most stress free aproach, to allow you to focus on moving, not stressing about finances.
Bridging Loans Explained, want to buy before selling?
BRIDGING LOAN MEANING
A bridging loan finances your new home purchase until you sell your existing property, allowing you to move smoothly from old to new, typically limited to 6 months. Or can be used to build a new home, normally giving you 12 months until you sell.
BRIDGING LOAN INTEREST RATE
Bridging Loans during the period of having both properties (peak debt) carry a higher rate, typically around +2% to a lender advertised rate. After selling your home it typically reverts to a lower rate, albeit may not be as low as the lender advertised rate.
CAN I GET A BRIDGING LOAN?
There are 2 key considerations for bridging loans, do you have enough equity/savings for 20% on both properties + buying and selling costs? (Or pay LMI) Secondly can you afford to pay at least interest only of the peak debt before selling your current home?
CAN I GET A BRIDGING LOAN WITH MY BANK
Additional to your circumstances noted under, CAN I GET A BRIDGING LOAN? above, not all lenders offer bridging loans, due to the added complexity, in particular for the relative short period of time from the Bank perspective.
HOW QUICKLY CAN I GET A BRIDGING LOAN?
Bridging Loans take longer than a normal home loan, particularly where you are drawing on equity for the new home deposit, vs having the deposit funds available. When changing lenders, you will need to refinance first to release the deposit funds. Conservatively assume 60 to 90 days.
CAN I GET A BRIDGING LOAN WITH BAD CREDIT?
Speak to us about your circumstances, each lender treats bad credit differently, we will work to match a lender to your credit history and your Bridiging Loan eleigibility based on the key aspects under CAN I GET A BRIDGING LOAN? .
What happens if I miss the settlement date?
1ST, SPEAK TO YOUR CONVEYANCER
Whilst Vendors can apply penalty interest based on missing settlement, if the delay is only a day or 2, the seller may not apply a penalty, but your conveyancer will liase with the Vendor to assess whether the seller will impose any addiitional costs.
POTENTIAL PENALTY INTEREST
The Victoria standarad is 12% of the purchase price, per annum. Occasionally the Contract of Sale will have a special condition applying additional interest or where the delay causes a seller to delay their purchase there may be further costs.
THE WORST CASE SCENARIO
If failing to settle within 14 days, it may result in your deposit being forfeited to the vendor, and you not owning the house. The vendor may also seek further damages for breach of contract. .
We now own our house thanks to you. We never thought it could be done and your advice and help throughout have made our dreams come true. We can’t thank you enough for all the work you have put in over the last 18 months, Ben. It has been a lot of work for you.
Thank you again!
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Praesent nunc lorem, tempus in egestas et, posuere placerat ipsum. Pellentesque vitae consequat lorem. Aliquam sit amet urna mauris
Nulla gravida pretium pellentesque. Vestibulum vulputate pellentesque porta. Vivamus eget quam turpis. Aliquam erat volutpat. Praesent magna arcu, blandit eget nunc et.
