Finance enquirie

Viewing 4 posts - 1 through 4 (of 4 total)

as41
Participant
@as41
Join Date: 2005
Post Count: 108
May 25, 2006 - 3:13 am
How do you go about financing a property before you sell your own home. This is a PPOR? How does a bridging loan work? [inlove]
Snowflake
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
May 25, 2006 - 3:45 am
Hi there
A bridging loan works on the basis that the lender wlll finance the property you are looking at purchasing and costs and take a mortgage against this property and the property you are selling.
Dependant on the equity level the interest charged can be rolled up into the loan and the debt repaid once the property is sold.
This day and age you would expect to pay a standard interest rate for bridging finance and lenders compete to try and offer such a product especially where there is an end debt.
If you want to put some figures forward I am sure we can assist you further.
Richard Taylor
Residential & Commercial Finance Broker
**NODOC loans from 7.14%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888
Richard Taylor | Australia's leading private lender
MIT
Participant
@millionaire-in-training
Join Date: 2004
Post Count: 154
May 25, 2006 - 5:11 am
HI As41
Have a chat to your current lender, there are several ways of doing this and it is all far easier than most think
Good luck
Sue
MIT | Owen Real Estate
Email Me
Anitamarshall
Participant
@anitamarshall
Join Date: 2005
Post Count: 79
May 29, 2006 - 8:30 pm
Most lenders have bridging products these days based on their standard interest rates for a home loan.
Some lenders also have “end debt” bridging loans which is where you are only required to pay the payments on what your end debt would be once your existing property is sold. This can be very helpful for your cashflow position while you are selling your existing property. They will allow this for 6-12 months depending on the lender. If you havent sold your property in that time then you are then required to make payments on both properties.
I would recommend you go to a broker who can shop around for the finance on your behalf as there are a wide variety of interest rates and products available for bridging purposes. It may also be worthwhile sticking with your existing lender however a broker can advise you on which lenders would best fit your scenario.
Anita Marshall
Advanced Finance Solutions
http://www.advancefinance.com.au
[email protected]