Bridging loans: The smart move for buying before selling.

In today's fast-paced property market, timing is crucial. You might discover your ideal home before you've sold your current one, but without the right financial solution, you could miss out. This is where a bridging loan from FinancePath can make a difference.

What is a Bridging Loan?

A bridging loan is a short-term financing option that allows you to secure a new property before selling your existing one. It bridges the gap between buying and selling, ensuring you can move forward without delays.

How it works:

• Coverage: The loan covers the purchase price of your new home, your current mortgage balance, and additional costs such as stamp duty.
• Interest: Interest is typically added to the loan amount, often with options for no monthly repayments during the bridging period.
• Repayment: Once your current home sells, the proceeds are used to repay the bridging loan.

This means you can buy first, sell later, and take your time to get the best price for your current property.

Key benefits of a bridging loan

1. Buy first, sell later: Gain control and flexibility over both transactions, helping you avoid rushed decisions.
2. Avoid temporary living costs: Move directly into your new home, saving you the hassle and expense of renting or moving twice.
3. Maximise your sale price: Use your home’s equity to make value-adding renovations before selling, boosting its appeal and potential sale price. Plus, you can time the market to your advantage.
4. Act quickly in a competitive market: Secure your dream home even if you haven’t sold yet, ensuring you don’t miss out on the right opportunity.
5. Flexibility with settlements: Handle each transaction at your own pace, streamlining the process and avoiding penalties from delayed settlements.

Is a Bridging Loan right for you?

Consider a bridging loan if you:

• Want to upsize or downsize without the pressure of selling first.
• Need flexibility to buy and sell on your own timeline.
• Want to avoid renting or moving twice.
• Plan to renovate your current home to increase its value.
• Found the perfect home and need to act fast.

How FinancePath can help

At FinancePath, we provide a variety of bridging finance options tailored to your needs. Want to learn more? Book an appointment or call us at 1300 780 440.