BRIDGING or “RE-LOCATION” LOANS

Bridging loans are generally short term loans to enable a new property to be purchased prior to an existing property being sold. It is important that the loan is structured correctly and in a way to allow settlement to proceed on the purchase of your new property prior to receiving sale proceeds from your proposed sale. The “gap” between purchase and sale settlement dates is the “Bridging” period.

Subject to LVR (Loan To Value Ratio) policy, the interest payable on the Bridging loan can be “Capitalised” (ie added to loan and paid at the end) so monthly payments of interest are NOT required, therefore resulting in less strain to your cash flow resources.

This loan can assist “Baby Boomers” and retirees downsize from the large family home to their smaller more manageable home.