Bridging Finance

Bridging Finance

We are here to help you secure a bridging loan with the lowest interest rates

Considering bridging loans? Learn whether it’s better to buy or sell first for a smooth transition

 

If you plan to purchase before selling your home, we are here to help you secure a bridging loan. The bridging loan covers both properties, including your dream’s existing and proposed property purchase.

Bridging loans requires extensive analysis as selling and purchasing times rarely align. The property’s market value can vary, as the market conditions at the point of selling and purchasing can impact the net equity. Given the complexity of the changeover, our expertise will simplify the whole process.

 

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Bridging Loans

Benefits of a bridging loan

Many people wonder whether to buy before selling or sell before buying when considering a move. A bridging loan is a short-term financing option that helps bridge the gap between the purchase of your next home and the sale of your current property. 

  • Allows you extra time so you can sell your property comfortably
  • Allows you to capitalise your interest while you waiting to sell your property
  • Experience the freedom to purchase your dream home without the need to sell your current one first

Interest capitalisation

  • Capitalise interest for financial flexibility while waiting for the sale of your existing property, if your income can’t cover loan repayments on both properties.

100% loan on the new property

  • You can borrow 100% of the purchase price and associated costs of your new property.
  • This option is especially helpful if you’ve bought a property that is currently beyond your borrowing capacity but will become manageable once you’ve sold your existing property.

Capitalising repayments

  • Capitalising the interest on a bridging loan means you don’t have to make full repayments during the bridging period.
  • It’s recommended to make some repayments to prevent the total loan amount from increasing significantly and to limit additional interest charges.

Bridging loan eligibility

Key factors that determine your eligibility for a bridging loan.

 

Your home equity

Lenders will examine the equity in your current home when determining the amount they can lend to you. The equity in your existing home is an important factor in qualifying for a short-term bridging loan and will also affect the maximum amount you can borrow.

Serviceability of your loan

When assessing your borrowing capacity, lenders will evaluate your ability to manage the loan responsibly by considering your income, expenses, and existing debts.

With or without End Debt

When applying for bridging finance, most lenders require an End Debt. However, if there won’t be an End Debt, such as when you’re downsizing your home, the fees for your bridging loan may be higher.

 

Bridging Finance Loans

Maximum End Debt

If you have an End Debt, it cannot exceed the value of your new property. If your End Debt is greater than 80% of your new property’s value, you may have to pay Lender’s Mortgage Insurance (LMI).

Sale contract for existing property

Lenders may require evidence that your current property has been sold (e.g. a copy of the sale contract) as a condition for approval. for approval.

Know how much you can manage to invest on a home or a property. Some calculators that can help you budget better.

Bridging Finance

For Bridging Loan, you are choosing VOXFIN for:

  • Maximising your Borrowing Power
  • Internally negotiated lowest interest rate
  • The best bridging loan mortgage broker in Australia will guide you throughout
  • Our clients’ high satisfaction ratings made us Australia’s best home loan mortgage broker

Frequently Asked Questions (FAQ)

Questions and queries related to Bridging Loans

WHAT IS A BRIDGING LOAN?
A Bridging Loan provides you with the funds to purchase a new home now while you work on selling your old one within a ‘bridging’ period of either 6 or 12 months, commencing from when you settle your new property.
CURIOUS ABOUT HOW A BRIDGING LOAN WORKS?
The bridging loan combines the loan for your current home with the loan for your new home. This arrangement lasts until you sell your old home. When you sell it, the proceeds go towards paying off the loan, which then becomes a standard variable home loan for your new property.
ARE YOU ELIGIBLE FOR A BRIDGING LOAN?
Bridging Loan is available to customers who are selling their existing owner-occupied or investment property to purchase a new owner-occupied property. The new purchase must be owner-occupied.
LOOKING TO SELL YOUR OLD HOME? WONDERING HOW MUCH TIME YOU HAVE TO MAKE IT HAPPEN?

Whether you prefer a 6-month sprint or a leisurely 12-month marathon, you have the flexibility to choose your bridging period for selling your home.

WHAT EXACTLY IS THE BRIDGING PERIOD?

The bridging period refers to a period of 6 or 12 months, chosen by you, to bridge the time between settling your new home (now) and selling your old one (later).

Why choose us?

We understand the importance of earning your trust in the guidance provided by the mortgage experts at VOXFIN. We can assist you with bridging loans as well as all other financial lending needs, such as refinancing home loans, car loans, commercial loans, and insurance. 

Additionally, we can assist with organising financing to start or grow your business and fund your assets. Our services for finding the right home loan are free of charge to you. Once your loan is settled, the lender compensates us.

About Us

VOXFIN’s expert bridging loan brokers are here to help you with all types of financial needs. We simplify the loan process and provide the right information and guidance so you can make sound investment decisions.

We assist Australians throughout the nation. We work with over 35 lenders in Australia to bring you the best loan option with the lowest interest rate and the most appropriate home loan structure to grow your property portfolio.

About Us

Australians have trusted us as expert home loan mortgage brokers for all types of their loans and mortgage needs such as first home buyer loans, refinancing home loans, agribusiness loans, business loan brokers, commercial loan brokers, car loan brokers, asset and equipment finance brokers, SMSF property loans, property development finance brokers, business car loan brokers, bad credit score lenders, medical professionals’ loans, personal loan brokers, and many more to help them find the suitable loans to finance their property dreams.

About Us

Get a Free Consultation

info@voxfin.com.au

0370652000|0435393623

At VOXFIN, we are committed to being with you at every step in your home loan process. We keep your best interests ahead of everything by providing comprehensive solutions powered by our solid industry expertise and deep financial knowledge. This ensures you can make an informed decision with confidence, knowing that you have our full support.

Our streamlined home loan borrowing process is designed to alleviate the stress of navigating the complexities of finding the best home loan solution. We’re here to secure the lowest interest rates on your owner-occupied home loan or investment property loan, making the process as smooth and convenient as possible for you.

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