AUSTRALIAN CAPITAL LENDING FOR BRIDGING FINANCE
So, you want to purchase a new home, but the problem is your settling date comes before you sell your existing property? With bridging finance, you can do just that. Bridging finance has become increasingly popular in recent times due to the deregulation of the banking sector, and presents an attractive option to home buyers if structured correctly, with manageable timeframes and a realistic estimate on your existing property.
If bridging finance is issued irresponsibly, with the main risk being that you do not sell your existing property within the agreed time limit, there can be significant financial dangers. The other, is grossly overestimating the value of your existing property. However, by employing the accounting expertise and savvy market forecasting of Australian Capital Lending team of professionals, this can be avoided.
In the majority of cases, the buyer will need to pay the bank or financial institution within of 12 months. During this period, those carrying a bridging loan will in essence be carrying two mortgages, which means you’ll be paying two sets of interest. While this sounds intimidating, bridging loans were considerably more expensive and bank friendly in the past, but rates have only recently come down to match a mortgage rate. As buying and selling of prices is seasonal, with some preferring to stand out in a less populated winter market and others opting for the more fashionable and popular spring buying frenzy, with careful calculation the mortgage payments can be more than recovered if the listing is perfectly placed.
HOW BRIDGING FINANCE WORKS
Let’s presume the mortgage on your existing home sits at $300,000, and you purchase a new property for $750,000. This equates to a total debt of $450,000. However, once your property hits the market and sells for a figure of, let’s suppose, $600,000, you repay the $300,000 on your initial mortgage and allocate the remainder to the debt on your new property. This leaves you with a debt of $150,000, in addition to the interest accumulated in the bridging period.
THE OPTIONS FOR IMMEDIATE FINANCING INCLUDE:
BRIDGE THE GAP WITH AUSTRALIAN CAPITAL LENDING
Employ our cutting-edge services to untangle complicated financial situations. Don’t let your dream home slip through your fingers because your current property isn’t ready for the market. With our team of finance experts, we can organise a bridging loan to get you into your new home sooner, and assess the value of your existing property with outstanding accuracy.