Did you find the perfect property, but your current home hasn’t sold yet? Or perhaps you’re waiting for a settlement. The clock is ticking, and you can’t afford to let this golden opportunity slip away. That’s where our tailored home loan bridging finance solutions come into play. Don’t miss out on the home you’ve always wanted. Learn more about home loan bridging finance.
What is a home loan bridging finance?
A home loan bridging finance is a short-term financial solution that helps you bridge the gap between buying a new home and selling an existing one. It provides temporary funds to cover the purchase of the new property before the proceeds from the sale of the current property are available.
This type of financing is particularly useful when timing differences create a financial shortfall during the transition between homes. A home loan bridging finance is typically repaid either when the existing property is sold or through refinancing into a more conventional mortgage.
The key benefits of a home loan bridging finance
Some of the key benefits that make a home loan bridging finance a valuable asset are:
Many bridging loans offer the flexibility of making interest-only payments, which eases the financial burden until the old property is sold. We can work with you to create repayment plans that align with your financial situation, providing a customised approach.
Quick access to funds
A home loan bridging finance is designed for quick approval and disbursement. This provides timely access to funds for the purchase of the new property. With streamlined processes reducing bureaucratic delays, you can ensure funds are available when needed during the home-buying process.
Home loan bridging finance not only covers the property purchase but can also extend to various associated costs, including moving expenses, temporary living costs, legal fees and even unforeseen medical expenses. This comprehensive support ensures that you have the financial means to address all aspects of the transition without strain.
Despite being a short-term financing option, home loan bridging finance often comes with competitive interest rates.
When is a home loan bridging finance useful?
Home loan bridging finance is useful in several scenarios:
- When downsizing or upsizing
- Paying personal bills or debts
- When a quick settlement is required to secure a property
- When purchasing a new property before selling the existing one
- Avoiding missed opportunities due to delays in selling the current property
- When planning significant renovations or construction before the sale of the existing property
- In cases where there is a temporary financial gap between the sale and purchase of property
How to apply for home loan bridging finance
To apply for a home loan bridging finance through Mango Mortgages, start by contacting us via phone, email or our online form. Provide your essential details for a quick indicative quote, covering rates, costs and document requirements. If the proposal meets your needs, we issue a formal offer letter. Review and, if satisfactory, return the signed proposal with required documents. Our team manages legal aspects, such as security documents or valuations. Upon receiving necessary documents, funds are securely transferred to finalise the loan settlement. Click here to apply for a home loan bridging finance.
Q: What is bridging finance & how does it work?
A: Bridging finance is a short-term loan facilitating property transactions. It covers the interim period between buying a new property and selling an existing one, providing funds when needed most.
Q: How does bridging finance work in Australia?
A: In Australia, bridging finance operates similarly to other regions. It aids in property transitions and offers temporary funds for a new purchase until the sale of the current property. Lenders often consider property values, exit strategies and creditworthiness.
Q: Can you refinance a bridging loan?
A: Yes, it’s possible to refinance a bridging loan. As your financial situation stabilises or property sells, you can explore refinancing options with traditional mortgages or other suitable loans.
Q: What happens at the end of a bridging loan?
A: At the end of a bridging loan, you typically either sell your existing property, using the proceeds to pay off the loan, or refinance the remaining balance into a more conventional mortgage.
Q: Are there limits on how long I can take out home loan bridging finance for?
A: Bridging loan terms vary, commonly ranging from a few months to a year. The duration depends on factors, such as the lender’s terms, your financial situation and the complexity of the property transaction.
Q: What types of properties can a home loan bridging finance be used for?
A: Bridging loans can be used for various properties, including residential, commercial or land. The key is having a clear exit strategy for repaying the loan.
Q: How long is the typical term for a home loan bridging finance?
A: The typical term for a bridging loan ranges from a few months to a year. It’s designed to provide short-term financial assistance during the transitional period between property transactions.
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