Bridging Loans
Want to Upsize or Relocate?
Considering a change in your living situation? Whether you’re looking to upsize, downsize, or relocate, navigating the process of selling and buying can be quite a challenge.
Traditionally, homeowners opt to sell their current property before purchasing a new one. However, there are instances when your dream home appears on the market before you’ve managed to sell yours – in such cases, buying first might be a more suitable option.
Enter the bridging loan. This loan facility provides the financial support needed to acquire a new property while you’re still in the process of selling your current one.
Clark Finance Group, we specialize in assisting our clients finding the perfect bridging loan tailored to their circumstances. Our goal is to swiftly get you the keys to your new home whilst allowing you time to sell your current home at the price you would like. By collaborating with a diverse range of lenders, we ensure that our clients receive the most favourable and competitive offers available in the market.
Bridging Finance Doesn’t Have to Be Confusing
Navigating bridging finance doesn’t have to be a daunting task. Whether you’re still exploring your options or have already taken the leap into your new home, Clark Finance Group is here to lend a hand. Our dedicated team is committed to streamlining the process for you, from identifying the right structure, lender, to handling all aspects of your application, ensuring a smooth and successful outcome.
Trust us to navigate the complexities of bridging finance, so you can focus on the excitement of moving into your new home.
Book a free consultation now to explore your options regarding bridging/ relocation lending together!
How Bridging Loans Work
Bridging/relocation lending allows for a short-term solution, typically spanning from 6 months to a year. Their primary goal is to empower you to secure your ideal home while you navigate the sale of your current property. Essentially, it allows you to “have your cake and eat it too.”
To assist you in managing repayments on a bridging loan, we introduce the concept of peak debt and interest capitalisation. It allows your current debt and new lending to be covered using both current and new properties whilst you negotiate on the sale of your current home.
These loans provide remarkable flexibility to borrowers, enabling them to lock in their new property swiftly. This facilitates a seamless transaction between you and the seller, alleviating the pressure of immediate sales.
Interestingly, many homeowners are unaware of this option when embarking on the journey to upsize, downsize, or relocate. Reach out to Clark Finance Group to discover if this type of loan suits your needs. We’re here to guide you through every step of the process.
Melbourne’s Home Loan Specialists
At Clark Finance Group, our commitment extends beyond providing financial solutions; we prioritize ongoing education for our clients. We believe that well-informed choices lead to maximized outcomes.
In addition to bridging loans, our expertise encompasses sourcing loans of various types, catering to diverse needs such as first home buyers, investment loans, SMSF loans, and refinancing.
By staying abreast of industry developments and maintaining a focus on residential lending, we consistently deliver exceptional service to our valued client base in Melbourne. We’re here to ensure that you have the knowledge and options you need to achieve your financial goals effectively.
FAQ's
Is a variable rate Interest Capitalised loan for short-term finance, to enable a borrower to purchase a new owner-occupied residential property prior to an existing residential property being sold. The net sale proceeds of the existing property are used to repay the Bridging/Relocation Loan in full.
In Australia, Bridging loans typically have a short duration, ranging from six months to twelve months. Keep in mind that bridging loans are interest capitalised, the interest charged will only be for how long the facility is required.
Interest rates for these loans can be higher than standard home loans due to their short-term nature and higher risk. Lenders may also limit loan to value ratio lending for what they consider Peak and End debt lending.
In Australia, bridging loans are limited to owner occupied purposes. Security is to be a registered mortgage over the residential owner occupied property(s), and must include both the existing property (the current residence being sold) and the new property (the future residence being purchased). It cannot be cross-collateralised to support other home loans.
Lenders use a specific calculation to determine a borrower’s lending amount for a bridging loan. Each lender varies on their maximum loan to value ratios for what is known as peak and end debt lending. It is best to chat to a broker or lender regarding your lending amounts under bridging before making an informed decision.
The short answer is Yes, bridging loans are designed to assist buying before selling, as soon as your current home your are selling settles, you can pay down your peak bridging loan debt without penalties being applied even if you originally went for a 6 month term and ended up settling 2 months into the term.
Bridging/Short-term property loans offer quick, flexible financing for property transactions for a specific purpose. The purpose being to buy a property prior to selling a current property. On the other hand, traditional mortgages/lending are long-term financing solutions aimed at purchasing property with a repayment period extending over 30 years. Traditional loans cannot cater for what bridging/short-term loans enable a client to do.
Loan Options
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More information?
Book a free consultation
support@clarkfg.com.au
Phone 1300 366 670
