Bridging Loans Cairns

If you're seeking Bridging Finance in Cairns, contact our team for a free no-obligation discussion.

Loans that Keep You Moving

The traditional way to upgrade is to sell the old home first, move into a rental, and hope the dream home is still available months later. Bridging finance allows the purchase of a new home now before selling the old one and owners only need to move house once.

There are many advantages to using a bridging loan to upgrade but there are some risks and borrowers must have equity in the existing property to make it happen. 

How does it work?

The bank will refinance the existing loan and provide the extra money needed to purchase the new home. Temporarily the borrower will own 2 houses. The keys on the new house are handed over and moving house can be made gradually.

The old home becomes empty making it easier to get ready for sale. Once ready, it is sold as a vacant possession which often sells quicker than an occupied house.

When it is sold, debt is reduced accordingly and only the one house with the one loan remains.

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Who Provides Bridging Loans?

Most banks will only provide this bridging loan to existing customers. There are a very small number of lenders offering genuine bridging loan where the ability to repay is based exclusively on the end position post sale.

How do I qualify?

Sufficient equity in the existing home is necessary so that the total debts do not exceed 80% of the combined value of both homes.

What are the risks?

If the property doesn’t sell within the required timeframe, principal and interest repayments on the full amount of debt is required.

Is it expensive?

Some bridging loans are over 1% cheaper than standard variable rates. They can also be at a lower interest rates than normal loans.

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Contact Lendfirst

To find out more and arrange a consultation with one of our mortgage experts, contact us.

Michael

Dawn

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