My neighbours and I are selling our houses to a developer on a put and call option agreement. Given the way house prices are moving I would like to purchase another house and rent it out until we have settled on the sale of my house. Will the bank give me finance based on the put and call option agreement? Any other advice would be appreciated.
This topic was modified 9 years, 8 months ago by Higherdale.
Look at bridging loans – some banks will take into account the end debt – ie assume your home and loan are gone. Generally you must sell within 12 months of getting the new loan.
Also consider that there is a chance your purchaser may not settle so seek legal advice.
As Terry mentioned with bridging you can go circa 85% lvr of combined values so as long as you don’t have a large PPOR loan you shouldn’t have an issue.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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