Found your next property before selling your current one? FI Collective can help you explore whether bridging finance could suit your move.
Bridging finance is a short-term arrangement that may help fund a purchase while an existing property is being sold. The lender will assess your financial position, available equity and proposed sale arrangements.
It’s important to consider the total debt during the bridging period and what happens if the sale takes longer or achieves a lower price than expected. We’ll help you understand the costs and requirements before you commit.
Review your purchase and sale timing.
Compare suitable bridging options and other lending approaches.
Explain the lender’s requirements and the debt remaining after sale.
Buying before you sell means planning for a period when you own both properties. Your available equity, expected sale proceeds and the loan remaining after the sale all help determine whether bridging finance could suit your move.
It’s important to allow for selling costs, interest during the bridging period and the possibility that your current property takes longer to sell or achieves a lower price than expected. Repayment arrangements also vary between lenders.
FI Collective helps you understand these considerations, compare suitable options through our lender panel and assess how the proposed finance fits your purchase and sale plans.
Bridging finance generally suits homeowners with solid equity in their current property and a clear plan to sell it. Lenders assess your equity, income and both properties before approving. As bridging loan specialists in Perth, we will tell you early whether it is a realistic option for your move, and talk through the alternatives if it is not.
Commercial bridging loans work on similar principles, although lenders assess the property, its intended use and your business position differently to a residential purchase. Talk to us about the properties and timing involved and we will look at what is available.
This depends on the lender and loan structure. Some bridging loans require regular interest payments, while others allow interest to be added to the loan balance during the bridging period. Any existing loan repayments may also need to continue. We’ll explain the proposed arrangements, including how interest affects the amount you owe.
A longer sale period can increase your interest costs and affect your ability to repay the bridging loan within the agreed term. Contact your broker or lender early if a delay looks likely. Any extension or alternative arrangement will need the lender’s approval, so it’s important to consider this possibility before committing.
Not sure where to start? Tell us what you’re planning, and our team will help you understand your finance options and what comes next.
