Bridging Home Loans Advice
IF YOU happen to have sufficient equity in your existing home, you can still afford to wait that little bit longer to obtain the higher price you have been asking for, and move into your new home while waiting, when you take out a bridging home loan. This flexibility is especially important if you are confident you have the price of your old home right and you don’t want to be forced to sell at a cheaper price. It is in situations like this that Bridging Home Loans advice is invaluable in you being able to save many thousands of dollars.
How Bridging Finance Works
Your lending authority can give you Bridging Home Loans Advice as well as a thorough assessment on how much equity you have in the home you are selling:
- If the equity is found to be sufficient it can transfer the entire balance including all the relevant fees.
- This action can give you up to six months longer to sell your first home and at the same time go ahead and purchase the new home without worrying about settlement dates.
Some banks and lending institutions will even capitalize your interest payment on your old loan which will allow you to avoid the hardship of paying off two mortgage payment while you are waiting to sell your old property. If this is not an option however you can still waylay the increased cost by having tenants move into your old home while you are waiting to sell rather than have it sitting there empty.
How to Use Bridging Finance
Benefit to builders: If you intend to go ahead and build your second home, to ensure you get the home you want and not that which an architect, who you have never met, thinks you want, Bridging Home Loans advice is what you should be seeking:
- A bridging home loan is particularly useful if you want to stay in your old home while building rather than having to sell your old home first and renting while the building is taking place.
- Once your building is finished and ready for you to move in you can then put your old house on the market for sale with vacant possession.
- You have avoided having to move into the rental property during the interim and moving again into your new home on its completion.
Qualifications: Borrowers must be able to satisfy their lending authority that they can still pay off their existing loan as well as interest on the bridging loan:
- If you are exiting a fixed loan there will inevitably be extra costs as well as establishment charges on the new loan, valuation fees and legal fees etc.
- Your lender is in effect taking on the risk of two mortgages by covering the gap between settlement and the new purchase.
Strict criteria: There is normally a pretty strict criteria imposed before bridging finance is approved by a lending authority. Conditions can include:-
- Unconditional sale on existing property.
- Restrictions on settlement terms.
- Other conditions on a case-by-case basis.
The best way to find out is to obtain Bridging Home Loans Advice from a source you can trust and that is why we are here, all you need to do is contact Home Loan Finder now to find out whether bridging finance is for you.
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