BRIDGING or “RE-LOCATION” LOANS
Bridging loans are generally short term loans to enable a new property to be purchased prior to an existing property being sold.
It is important that the loan is structured correctly and in a way to allow settlement to proceed on the purchase of your new property prior to receiving sale proceeds from your proposed sale. The “gap” between purchase and sale settlement dates is the “Bridging” period.
Subject to LVR (Loan To Value Ratio) policy, the interest payable on the Bridging loan can be “Capitalised” (ie added to loan and paid at the end) so monthly payments of interest are NOT required, therefore resulting in less strain to your cash flow resources.
This loan can assist “Baby Boomers” and retirees downsize from the large family home to their smaller more manageable home.
Damien Keily fully understands Bridging finance and the correct way to structure Bridging Loans having written many Bridging Loans over the years assisting clients with the purchase of their new homes prior to having sold their existing home. Hie is happy to explain the pro’s and con’s of buying first or selling first.
For further information on Bridging Finance or for a personal assessment please call Damien on 0425 781 639.