Moving house or buying another property

Upgrading to a new home can be a tricky process. Majority of home loans are portable to another property, however it can be difficult trying to organize same day settlements of your new property and the sale of your existing property. This is where bridging finance can take the stress out of the transition. Bridging finance allows you to purchase your new property prior to selling your existing home. It also provides the following benefits:

• Helps cover the deposit on the purchase of the new property saving you on possible mortgage insurance
• Depending on the amount of equity in your property, it may also cover repayments on your existing home loan which will capitalize until you sell the property. This way you only have to cover the repayments on what will be your final home loan on the new property. Normal timeframe allowed to sell the property is six months.
• Total peak debt is generally maximum 80% of the total value of both properties.

The bridging finance criteria once again differs between lenders and how much equity you have available in your existing property .