Bridging Finance

Thinking about upsizing or downsizing your home? We can help you decide how to make your next move.

If you’re looking to move houses then you’ve probably heard of the term ‘bridging finance’.

This type of loan will help you acquire a new home, – allowing you time to sell the old home. Unlike your traditional home loan, bridging finance has a shorter loan term, generally anywhere between six and 12 months.

Some Benefits of Bridging Loan Financing
• You can buy straight away and not have to wait for your home to sell.
• You can avoid renting and multiple moving fees.
• During the bridging period, you may only make repayments on your current mortgage.
• You can keep your monthly costs down with deferred payments.

Some Drawbacks of a Bridging Loan
• You will be charged interest on the full amount of your new loan.
• Interest is usually charged on a monthly basis, and will accumulate until you sell your property.
• Interest on bridging loans can sometimes be more than the interest on standard home loans.
• You’ll need two property valuations, the old home and the new home.

Buying before selling and obtaining bridging finance has its risks, so it’s important you weigh up your options. To discuss options available to you, contact us today.