Are you considering upgrading your home, relocating, or purchasing a new property before selling your current one? A bridging home loan can provide the financial flexibility you need to secure your dream property without the pressure of immediate sale. At HSD Finance, we specialize in tailoring bridging loans to help Australians make smooth, stress-free transitions.
A bridging home loan is a short-term financing option that “bridges the gap” between the purchase of a new property and the sale of an existing one. With a bridging loan, you can access funds to buy a new home while you’re still finalising the sale of your current property. This means you can move quickly and confidently in competitive markets, without missing out on your ideal home.
When you take out a bridging loan, the lender typically covers the cost of the new property. This loan is generally structured as an interest-only arrangement, where you repay only the interest during the bridging period, which can last up to 12 months. Once your existing property is sold, the proceeds from the sale are used to pay down the bridging loan, reducing the balance and transitioning the loan into a standard mortgage.
Choose between interest-only payments or capitalising interest, meaning you pay it at the end of the term.
Depending on your circumstances, bridging loans can offer flexibility with time frames to allow for the sale of your current home.
Once your current property is sold, the remaining loan balance is converted into a typical mortgage.
A bridging loan can be ideal for homeowners who need financial flexibility in order to secure a new property quickly. However, it’s essential to consider that this type of loan often has slightly higher interest rates due to its short-term nature. If you’re prepared for these conditions and your current property is in a strong position to sell, a bridging loan may be an excellent choice.
As trusted mortgage brokers, HSD Finance is here to guide you through every step of the bridging loan process. Our experienced team will assess your needs, explain your options, and help you secure the most competitive rates available. We’re committed to simplifying the process, making it easy for you to transition from one home to the next.
Ready to make your move without the stress? Contact us today to learn more about our bridging home loan options. Our team at HSD Finance is here to support you in making your next property purchase as seamless as possible. Let us help bridge the gap to your next home, so you can focus on what truly matters – making it yours.