Imagine how you would feel if you found another property that you love, but have not yet sold your current home?  There is way you can still put in an offer on your dream home.  In order to fund the purchase of the new property, you can take out a bridging loan.

This is a short term loan offered to bridge the gap between transactions and back up your new Sydney mortgage.  When a lender approves a bridging home loan, they are effectively taking on both mortgages.  Typically the loan will be between 1 and 12 months.  Once your current property is sold, you can use this to pay for the bridging loan.

Most lenders offer bridging home loans but are also quite strict when it comes to lending criteria.  Lenders will want to see proof of your income, and be sure that you can afford both the loans.

Positives:

• No pressure to sell your current home and risk selling for a lower price
• Financial peace of mind when it comes to making an offer on another property
• Less stress in making sure settlement dates match up
• No need for interim rental property if there is a gap between buying and selling

Considerations:

• There may be establishment fees for the new bridging loan as well as legal fees
• The bridging loan may have a higher interest rate
• Your income needs to be able to pay for the two loans
• The loan is short term, and there may be pressure to sell your home within the loan period

Bridging home loans can offer an excellent opportunity for you to go ahead and purchase your new home, before selling your current property.  However, be aware of the extra costs involved and talk through any major financial decisions with a qualified mortgage advisor.  Call Your Local Sydney Mortgage Broker on