Bridging Loans

Buy or sell first? Let’s bridge the gap.

You’ve found your dream home, but you haven’t sold your existing oneyet. You want to secure it before you sell your existing home so thatyou don’t find yourself with no-where to live. Let us help you bridgethe gap.

A bridging loan is a short-term facility that covers the financial gapbetween the purchase of your new property and the sale of yourexisting property.

Eligibility

A bridging loan is available to clients who have the necessary equityin their property to be able to secure the funds required to bridge thegap between your current property and the new purchase.

A quick calculation to determine whether you may be able to secure abridging loan is:

1. The current balance of existing lending; divided by
   
   
2. The estimated value of your existing property; multiplied by 100
   
   
3. Will give you your current Loan to Value Ratio ( LVR – your totalloan amount shown as a percentage of the value of your property). If your current LVR is over 70%, then bridging may not be a viable option for you, but there may be other ways to secure your property.  If your LVR is below 70% you may be eligible for a bridging loan. The lower your LVR the more viable a bridging option becomes.
   
   

Benefits

A bridging loan gives you the flexibility to purchase a new propertybefore you’ve sold your existing property. In a competitive market thiscould be the difference between purchasing the ideal property ormissing out due to timing.

It can take the stress out of having to align your property settlement dates, to give you more control.

It allows you to borrow more money than you otherwise could under normal circumstances. This is because lenders understand that your total overall home loan debt will be reduced once you have sold your current property and paid off the bridging loan amount.