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Residential Bridging Finance .pdf


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Bridging Finance – Is it The Solution?

Funding property purchases would be one of the more common uses of bridging finance. By having
bridging finance in place, it will help you to stake that claim for your house purchase by maintaining your
place in that sale chain. It will help you be successful in purchasing a property at auction. If DIY home
renovations are your thing, then the idea of buying a rundown property with a view to renovating it and
eventually selling it can be done with the right finance in place. Perhaps you are looking for a holiday
home to spend your weekends.
Different Bridging Loan Situations
There are many forms that property
purchases can take, and that means
finding the right broker to help you with a
bridging
loan
that
suits
your
requirements.
There is a bridging loan that has fixed
repayments and a set finishing date.
These are popular with buyers who have
exchanged contracts on their existing
property but the finalisation of the deal,
funds wise, will not be completed for a
few days or a few weeks.
Another type of residential bridging loan, on the other hand, is one where no repayment date is set
because the sale contracts have yet to be exchanged on the properties concerned. This usually happens
when you have found the property you like, your dream home maybe, but you can’t finalise the purchase
and move in until you have sold the house in which you currently live. You should be exploring all the
finance options open to you in these situations so that you get the best solution.

https://www.gcchomeloans.com.au/

What About a Second Mortgage?
You can always take out a second
mortgage as an option. This might be
difficult if the lender determines that you
do not have the financial means to be
able to afford the two mortgage
repayments on a monthly basis. While it
is an option you can explore, there will
be other criteria you will need to satisfy if
you take this route. By all means though,
it’s worth checking out.

Higher Interest Rate
If that second mortgage option doesn’t work out then bridging finance is something you may want to
consider. One thing to remember with regard to residential bridging finance is that the interest rates are
somewhat higher than a normal home loan rate. That may mean that you consider a bridging loan as a
short-term funding option.
For obvious reasons, the interest rate and repayment amounts are important considerations. The longer it
takes you to sell your property, the longer it will take for you to repay the loan and that means you will
have to repay more.
The housing market is currently a little hard to
determine and can, at times, be described as
unstable or turbulent, so there is no way of
knowing how long it will take to sell your
property. Like all property a lot depends on
the following considerations:1.
2.
3.
4.

Location
Proximity to good schools
Transport links
Other factors

However, even if your property ticks all of
those boxes and is considered a great buy,
restricted access to mortgage finance and
some uncertainty surrounding the economy
could upset or stall your chances of making a quick sale.
At GCC Home Loans, with our 250 lenders from which to choose, we would find one that will take into
consideration the likelihood of you successfully selling your property in the near future.
While you may have your heart set on a particular property, ask yourself the questions – Is it feasible?

https://www.gcchomeloans.com.au/

Do you have a realistic chance of selling your home in the next few months? Contact GCC Home Loans
to discuss the issue. With their experience in what is becoming a very popular loan style, they can find
you a lender that will suit your particular circumstances. It’s a sensible approach to take.

For more details about
Non
https://www.gcchomeloans.com.au/.

Resident

Home

Loan,

Please

visit

https://www.gcchomeloans.com.au/

our

website


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