Considering a Bridging Loan? Read more
Recently updated on January 10th, 2023 at 05:55 pm
A bridging loan is usually quick to arrange, is known for having flexible terms and can be used for many purposes.
Is bridging finance a good idea?
This is a question to consider in conjunction with your accountant and finance broker. Here’s an overview of some common scenarios of where bridging loans are used.
Finance a property development
Property developers often consider a bridging loan if they have limited available capital, assuming there’s a strong exit strategy (which typically corresponds with the property being sold).
Buy auction properties
Bridging loans are often used to facilitate the deposit required at an auction
Finance a property purchase despite bad credit
Bad credit reports will remain on your file for years. This is why many people with bad credit find it tough to purchase a property. The good news is that an increasing number of bridging loan lenders accept credit impaired borrowers as long as there’s a sound exit strategy (how you plan to repay the loan).
Fund a short-term investment
A bridging loan is often considered for a time-sensitive investment opportunity when you don’t have time to wait to have a conventional mortgage to be approved.
How to apply for a bridging loan
An online application is increasingly preferred as it’s quick and convenient. Many lenders allow borrowers to apply for a bridging loan online. The application criteria and processing times vary from lender to lender (fintechs, non-bank and specialist lenders tend to require less paperwork and have faster processing).
At Mango Credit, aside from bridging loans, we also offer first mortgage loans, second mortgage loans, caveat loans and home equity loans.
Since 2001, we have helped thousands of Australians get out of a bind and explore great opportunities through short-term property loans. Our team of qualified, licensed and experienced lending experts specialise in credit, mortgage and fund management, which helps us to provide tailored lending solutions to our clients.
We require no credit check or income assessment and offer flexible underwriting and services that are open even for those with complicated income streams or affected credit history. We are also transparent when it comes to fees, charges, interest rates and costs. We discuss any additional costs like late payments upfront.
Key takeaway
If you need to move quickly to purchase a property or grab an opportunity, a bridging loan could be worth considering. Your mortgage broker is best placed to ensure you’re obtaining the most suitable loan for your requirements.
Mango Credit
Yanis Derums is the Founder and Director of Mango Credit– a leading private lender specialising in bridging loans for personal use and business short term loans for commercial and/ or investment purposes. Yanis has extensive experience with financial analysis, credit assessment, product structuring, and general business management