Bridging Home Loans

Bridging loans are offered by a number of lenders and are designed to provide a way to purchase or build a new home before selling the existing property. The lender takes security over both of the properties until the sale and purchase process on both is complete. During the bridging loan period most lenders offer interest only repayments and in most cases allow the interest to capitalise, relieving you of the necessity of making repayments during this time.

Generally lenders allow up to 6 months to sell your home if you are purchasing, and up to 12 months if you are building. This can be a very helpful loan but care must be taken as in most instances interest accrues and there is a set time frame. It would be advisable not to enter into such a loan when the home market is slow, however at other times it can be a useful loan to secure that property that may be your dream home or simply a good buy.

Contact our office for information on Bridging Loans.