Bridging Home Loans
Don't miss out on purchasing a home because of financial obstacles! We can arrange a bridging home loan for borrowers who are looking to purchase a new property before selling their current home.
Why Choose Bridging Home Loans?
Purchase Before Selling
Buy your new property before selling your current home, giving you the flexibility to move when you want.
Avoid Renting
Stay in your current home while building a new one, avoiding the hassle and cost of temporary rental accommodation.
Flexible Timeline
Generally, borrowers have up to 12 months to sell their existing property, giving you time to find the right buyer.
How Bridging Loans Work
Apply for Bridging Loan
We assess your financial situation and both properties to determine your eligibility for a bridging loan.
Purchase New Property
Use the bridging loan to purchase your new property while keeping your current home as additional security.
Sell Existing Property
You have up to 12 months to sell your existing property and repay the bridging loan with the proceeds.
Key Features of Bridging Loans
Dual Security
The lender takes both properties as security for the loan, providing them with additional protection.
- Both properties serve as collateral
- Reduced risk for lenders
Variable Rate
Bridging loans are usually offered as standard variable rate loans, which may have higher rates than standard home loans.
- Rates can fluctuate with market changes
- Higher rates reflect increased risk
What You Need to Qualify
Bridging loans require careful consideration of your financial situation and both properties. Here's what lenders typically look for:
Strong Financial Position
Lenders need to see that you can comfortably service both loans during the bridging period.
Equity in Current Property
Sufficient equity in your existing property to provide adequate security for the bridging loan.
Realistic Sale Timeline
A clear plan and realistic timeline for selling your existing property within the 12-month period.
Frequently Asked Questions
How long do I have to sell my existing property?
Generally, borrowers have up to 12 months to sell their existing property. This timeframe can vary depending on the lender and your specific circumstances.
What happens if I can't sell within the timeframe?
If you can't sell within the agreed timeframe, you may need to refinance or discuss an extension with your lender. It's important to have a realistic sale plan.
Can I use a bridging loan for investment properties?
Yes, bridging loans can be used for investment properties, but the terms and conditions may differ from owner-occupied bridging loans.
What are the interest rates like?
Bridging loans typically have higher interest rates than standard home loans due to the increased risk. They're usually offered as variable rate loans.
Ready to Bridge Your Property Gap?
With 30 years experience writing home loans, we know exactly who's offering the best interest rates. We have access to over 30 bank and non-bank lenders, including the big 4, and over 1400 home loan product options.