Secured, Private Bridging Loans In Australia
Considering moving to a new home? Selling your house and buying a new one at the same time can be a bit tricky. For starters, it may take some time to find a buyer for your house, and maybe you need some money from that sale to finance your new home. This is where bridging finance comes in.
With a bridging loan, you can avoid the stress and inconvenience of having to wait or match settlement dates, and proceed to buy your new home as you wait to get a good bid for your existing house.
APPLY for bridging loans in just one click! NWF Capital is a fast and reliable bridging loans provider in Australia! CONTACT US NOW TO APPLY!
Understand What Bridging Finance Is
Bridging Finance functions as a short-term loan facility that provides funds for the purchase of a new home while you are in the process of selling your current home. Bridging loans also provide finances to construct a new home while living in your existing home. You will typically have anywhere between 6 and 12 months to sell your current home or to finish constructing your new home.
Bridging Loan Facts
Here are some key bridging loan facts:
- A bridging loan is a kind of interest-only home loan
- A bridging loan has a value that is calculated based on the equity you have in your current home
- A bridging loan has a limited loan period.
How Does a Bridging Loan Work?
Found a new house but are yet to find a buyer for your current home? If that is the case, you could consider a bridging loan. This is a short-term loan option that you can use before your existing property is sold. The length of the loan facility is usually about 6 to 12 months. The size of the bridging loan is calculated based on your current equity in your existing home. There are 2 main types of bridging loans:
1. Open Bridging Loans
Used if your current house hasn’t been sold yet. An open bridging loan can be arranged for up to 12 months.
2. Closed Bridging Loans
Used if you already have a Sale Agreement on your current home and know the exact date when your house will be sold and funds remitted. You’ll be required to pay the loan plus any fees and interest accrued before the sale date.
Bridging loans can also work in many other different ways, depending on specific circumstances. The key thing to remember is that bridging loans are like traditional loans, with interest-only repayments, until your property is sold, and the principal can be repaid in full.
Therefore, you can use a bridging loan to pay off any existing debt on your previous home, and then pay the deposit on your new home.
Benefits Of Bridging Loans
- Avoiding the transition costs like renting or moving twice.
- You can make unlimited interest repayments on the bridging loan until you sell your property.
- Similar charges and fees as a standard home loan, meaning no application or discharge fees.
- Low-interest rates.
- Interest only repayments, which are ‘frozen’ during the bridging period until you sell your current home.
- Allows you to get a better price on your property.
- You can buy a new property right away!
Why Partner With NWF Capital For Your Bridging Finance?
Are you looking for a reliable and affordable bridging finance facility? NWF Capital offers various types of bridging loans for homeowners who want to make the transition to their new homes easy and convenient.
Bridging loans are an excellent option if you want to move quickly to buy your dream property.
Contact us today or fill in our free assessment form to find out if you qualify for a bridging loan.
Bridging Loans
Frequently Asked Questions
If you haven’t sold your current home yet, you’ll need to have a certain amount in savings in order to purchase the new home.
You need to have more than 50% equity in your existing property to qualify for a bridging loan.
A bridging loan provides you with the finances you need to purchase a new property without having to sell your current home first.
There are various costs associated with bridging loans such as loan application fees, selling costs, purchasing costs, property valuations and capitalised interest. All of these will depend on the amount being borrowed.
In most cases, a typical bridging loan application takes anywhere from 1 to 3 days. However, with pre-approval, you can have your loan approved within 48 hours.
A homeowner who has met the criteria for applying for a bridging loan, regardless of their credit score, can get a bridging loan.
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