What is a Bridging Home Loan?
The bridging home loan serves several residential property purchase purposes. It’s a short-term solution that includes a competitive interest rate. Mortgage House offers one version with a 12 month loan term and an interest rate hovering below 3%.
A 12 month period affords a homeowner enough time to sell their current home and purchase a new one. The home loan to bridge finances allows you to obtain your deposit on the new house before receiving the proceeds from your home sale.
Keep in mind that you’re responsible for making monthly repayments on time according to the loan terms. Plus, you’re responsible for any outstanding mortgage repayments and other debt in your name. Therefore, applicants undergo a financial background check. The process isn’t as in-depth as for first-time homebuyers, but it checks income and expenses.
In some cases, investors use the home loan to bridge finances as leverage. It’s possible to send interest-only payments to lessen the monthly repayment responsibilities. They leverage the 12 month and lesser repayment to procure a homebuyer for the property at a lower cost.
For homeowners simply seeking to relocate, the loan specialists at Mortgage House work on providing a comfortable repayment schedule in most cases. They find out the current home loan interest rates and offer loan terms that balance the risk for Mortgage House and reward for the applicant.
Bridging loan options include variable and fixed-rate. Owner-occupied and investment home loans are two other options.
Bridging Home Loan Conclusion
To discuss the details of a bridging home loan, contact our Mortgage House loan specialists.