Easy Financing Through Bridging Loans
Recently updated on January 10th, 2023 at 05:16 pm
Bridging loans are a flexible form of short-term financing that can be obtained relatively quickly. It is often easier to qualify for a bridging loan than for other types of funding. Bridging loans can be used for a variety of reasons, including the purchase of property, home improvement or settlement of debts.
How quickly can you get bridging finance?
A bridging loan can be arranged quickly. In most cases, you can expect to have the funds available within a few days, which makes it an increasingly popular option for obtaining funds quickly.
At Mango Mortgages, the process is quite straightforward. There is no proof of income or credit check needed. You will only need to provide some basic information and the following requirements:
- Information about you and your broker (if applicable)
- Reason for getting a loan
- Details about your property, your security
- Amount of loan needed and when you need it
- Copy of your most recent council rates notice and mortgage statement
Bridging loans can be worth considering depending on your needs, the type of loan you’re looking for, when you need it, and what you’ll use it for. Once your application has been approved, your lender will charge you a monthly repayments.
Is there an alternative to a bridging loan?
Some borrowers select to obtain an additional home loan to purchase a new property instead of a bridge loan. With this option, you l need to be able to repay both mortgages, as well as satisfy the criteria for both loans. This pathway also usually takes longer to process.
Applying for a personal loan is also an alternative to a bridging loan, though keep in mind that the interest rates are often higher and the amount able to be secured is often quite low.
How much of a bridging loan can you get?
The amount of money you can borrow through a bridging loan in Australia will depend largely on the value of your property. In a lot of cases, you can borrow up to 70% of the value of your property.
It is also important to note that the interest rates on bridging loans are usually higher than standard mortgage rates. However, the interest rate will vary depending on the lender you choose.
Also, you will need to have sufficient equity in your property to be eligible for a bridging loan. This means that the value of your property must be greater than the amount you owe on your mortgage.
For instance, if you are looking to purchase a property worth $500,000 and you have a mortgage of $300,000, you will have $200,000 in equity. As a result, you may be eligible to borrow up to $140,000 through a bridging loan.
If you’re not sure how much you can borrow, it’s always best to speak to a financial advisor or broker. They will be able to assess your situation and give you a better idea of how much you could potentially borrow.
Key takeaway
A bridging loan is a type of short-term finance that’s a good source of quick funding. If you’re looking to purchase a property but don’t have the full amount ready, a bridging loan could be an ideal solution.
At Mango Mortgages, our financial specialists can discuss your options. We offer competitive interest rates and flexible repayment options. You can apply online here.
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