CONSIDERING BRIDGING FINANCE?
There are many instances when your client might find themselves in a situation where they need bridging finance. Bridging finance or a bridging loan is the name given to a loan that is intended to create a ‘bridge’ from one property to another.
When to consider bridging finance
Your client may need a bridging loan when they have a purchased a new property but not yet sold their existing residence or if they are building a home and wish to remain in their existing residence until the new home is completed. A bridging loan is intended to enable someone to purchase a new property without having sold their existing property. Remember that a bridging loan is not intended to be a long term arrangement and the lender may often put restrictions in place such as a limited timeframe for the borrower to sell their home.
“Bridging finance may have additional costs.”
A bridging loan may seem like a good option to enable someone to purchase a new home without having sold their existing home, but they should be aware that there are often additional costs and charges associated with this type of finance. The lender may also choose to charge a higher rate of interest so the client can be sure they are capable of servicing all of the debt before they take on this type of finance.
I hope you find this information useful and remember that I am here to discuss any aspect of finances, with either you or your clients so please call our office on 9417 5550 to make an appointment today.