What is a bridging loan?
A bridging loan is a sum of money lent by a lender to cover an interval between two transactions, typically the buying of one house and the selling of another. Waiting to sell an existing property, but found the perfect ‘ next’ property? There is a way to ‘ bridge’ the gap. A bridging loan may also be used to purchase an investment property with the loan repaid when the investment property is refinanced.
How much can I borrow?
Borrow up to 75% of current debt, up to 75% of purchase price, contract/valuation (if applicable)
Do you need a bridging loan?
Bridging loans are a great option if you need to move quickly to buy a property. Like any other home loan though, it’s not a debt to be taken on lightly and it pays to speak to Prime Finance so they can provide the right recommendations to you.
1300 130 538 or email [email protected]
What are the pros?
- You can buy your new property right away: You don’t have to wait to get a loan.
- Interest-only repayments, Your bridging loan repayments are built into the loan amount during the bridging term or until you sell your existing property
- Fees and charges: application fees and interest charges depend on the loan amount and loan period
Bridging loans 1st & 2nd mortgage loan/caveat loans
Bridging loans are no longer than a 12 month period
Prime Finance Bridging loan product guides residential purpose/business purpose
1. Loans up to 1.5 million dollars
2. LVR up to 80% of as is value (terms and conditions apply)
3. Rate mortgage/caveat loan rate is 1% to 2% per month
Prime Finance Bridging loans securities
· Residential properties in metropolitan areas
· Rural / Residential properties (population over 50,000)
· Commercial properties
· Industrial properties
· Vacant Land (in metropolitan areas only, LVR up to 75%)