What is a Relocation Home Loan?
In 2020, a study estimated that 43,000 Australians relocated within the country. Other studies estimate that Australians remain in their home for 10 to 15 years even though the mortgage has a term of 30. It’s not necessarily that Australians are on the constant move, but things that cause some to move happen.
The top reason people move is a job change. Some seek a better school district for their children and others are downsizing or upsizing. Whatever your reason for relocating, a relocation home loan is an option that finances the move.
Relocation home loans are also known as bridging loans. They’re short-term financial products. They bridge the financial gap between selling your current home and buying a new one. It takes into consideration several factors, such as the value of the current home, the value of the new home, and your current financial situation. Home loan calculators are helpful for figuring out the math.
To procure the relocation home loan, you are required to fill out an application. A loan home loan specialist looks over the information and delivers a solution. These loans don’t require monthly repayments, but they must be paid in full before the loan term expires. The typical length of the loan is 12 months.
Relocation Home Loan Conclusion
A relocation home loan bridges the gap between selling your current home and relocating to a new one. It covers the deposit, stamp duty, and related expenses. In some circles, it’s also known as the bridging loan. For more information about this loan, contact the loan specialists at Mortgage House.