Bridging Finance

How a Bridging Loan can Help You Secure the Property of Your Dreams

A bridging loan is a temporary loan that is intended to ‘bridge the gap’ that could exist when a homeowner is still selling his house and when he is set to take another mortgage. In other words, when a homebuyer is purchasing a new home before completely selling his current house, the bridge loan can be a source of cash needed to pay the down payment of the new home purchase.

Bridging loans are supposed to use the buyer’s existing house as security. The facility can provide sufficient amount of money to fund the down payment, which is a requirement to buy and relocate to the new move-up home. There is doubt that a bridging loan can help you finally buy your dream house.

Bridging Finance

Bridging Finance

Home owners have been making the most of rising property prices.  Sydney, Melbourne, Brisbane and Adelaide all had significantly more properties up for auction than on the same weekend last year, with 1991 homes listed, which was up from 847 last year.

According to Australian Property Monitors, the total weekend auction revenue was up $208 million on the same time last year.

Auction clearance rates in Sydney reached 70.7% at the weekend, up 6.7 percentage points from the same weekend last year.  But Melbourne was by far the busiest city for auctions, with 1072 properties listed for auction, 75.5% of which were sold.

Australian Bridging Finance

If you are selling or have recently sold your property and are in need of a quick short term loan, you should consider bridging finance.  Bridging finance is a very popular way to receive funds and fast, while waiting for your property to settle. Bridging finance is commonly used to assist with the completion of purchasing a new home before settlement on an existing property takes place.

Bridging finance can also be used to access funds for your business, or simply to pay some bills.  Whatever the reason is, if you need a short term loan or cash advance, call us today.

We have our own in-house funding pool, which allows us to facilitate short term funds for a range of personal, business or investment needs. Our loans are hassle free, and approved quickly which sees our clients returning to us time and time again.

A short term loan through the Australian Lending Centre offers competitive interest rates, requires minimal financials and gets approved quickly.

To speak with a consultant today to learn how Bridging finance or a short term loan from the Australian Lending Centre could assist you call 1300 138 188 or simply fill out the enquiry form to your right.

Bridging Finance

Banks Decline Homeowners from Bridging Finance

You may have found your dream home but have not yet managed to sell your existing property.  Without the proceeds from the sale of your current property, many people can find it difficult to buy the new property.  Bridging finance enables people in this situation to purchase a new property, whilst you await the sale of your existing and offers financial relief during this period. Unfortunately, banks sometimes decline bridging finance leaving you in a difficult situation.

According to industry experts, bank lenders are increasingly blocking homeowners from receiving bridging finance.  This strict position by the major banks is restricting the property market by delaying home purchases and forcing homeowners to sell their homes before they’re able to buy a new one.

Bridging Finance

Some mortgage experts believe that the banks are claiming that bridging finance can produce bad debt – so basically it’s just not worth it for the banks to offer.  Effectively bridging finance becomes like a second mortgage on the first property and banks don’t like increasing the amount of money they lend, because in many cases they don’t have enough collateral to secure that extra money against.

Once upon a time when banks weren’t getting a good margin, they would have to lend as much as they could, now that they’re getting a much better margin, they’re less inclined to approve riskier loans. For this reason, banks are known to decline bridging finance.

Mortgage experts also believe the banks’ dislike to bridging finance may be due to the fact homes in certain areas are taking a lot longer to sell these days, which elevates the risk lenders assume when providing a bridging finance loan.

At the Australian Lending Centre we have access to a panel of non-bank lenders who offer bridging finance during the sale and purchase of property.  To speak with a loan consultant regarding bridging finance today, simply call 1300 138 188 or fill in an enquiry form to your right and a loan consultant will call you shortly.