Bridging Home Loan Basics
Some homeowners sell their houses on purpose. They decided that it’s time for a change. Other times the decision occurs for the homeowner. A relocation, growing family, or job loss puts the homeowner in a place that requires a decision. Whenever a homeowner needs to sell their home and purchase a new one simultaneously, they benefit from a bridging loan.
Here we offer the bridging home loan basics.
The loan options include variable, fixed-rate, owner-occupied, and investment. Each option is best for specific clients. Some homeowners prefer a predictable interest rate every month. Others ride the variable rate wave.
Two Loan Types
Next, applicants can pick from two types, single or separate loans. The single loan has a length of six to 12 months. The properties act as a security against it. Those who opt for the separate loan receive more time to pay it back.
Selling a home and purchasing a new one simultaneously lead to more financial obligations. For example, the homeowner requires a down payment for the new home. If the current hasn’t sold, they don’t have those proceeds at their disposal yet.
During the life of the bridging loan, it’s possible to make interest-only payments. Repayments differ from a mortgage. There is no set monthly repayment. Instead, the loan specialist works out your obligation with you during the application stage.
Keep in mind that Mortgage House clients receive access to additional loans such as the vehicle loan and car loan calculator.
Bridging Home Loan Conclusion
A bridging home loan is a great financial tool that helps homeowners fill a financial gap. For more information about the loan, contact our Mortgage House team. Our loan specialists can answer your questions and start the application process with you.