If you're thinking of selling, but don't yet have another home to move in to, where will you live?

This is such a common stress, that many Australian's experience when moving into the next family home.

The short video below explains how to:

1. Buy you next family home, NOW

2. PAUSE all mortgage repayments

3. Get 12 months to SELL your current property

This is called Bridging Finance. Otherwise known as a Bridging Loan.

Why Would I Want To Use A Bridging Loan?

If you are finding it challenging to find the next family home, and sell your current property at the same time. Bridging helps bridge the gap between the two, allowing you to move into the next family home now, and sell your current home later.

How Do I Qualify?

1.      You need the equity available in your home.

The equity required for Bridging is based on multiple factors. How much your current property is worth, how much equity is available in the property, and how much you are going to buy your next home for.  If you would like to know if you have enough equity to do bridging, there are special calculators used to check how much is needed.  

2.      You need to meet standard servicing requirements

Bridging Finance, also known as a Bridging Loan, requires standard servicing calculations to be applied. Meeting the original servicing criteria for your current mortgage, does not necessarily  mean you automatically pass the servicing criteria for a bridging loan.

3.      How long do I get to sell my property?

Some banks and lending institutions offer 6 months to sell your property. Other banks offer up to 12 months. Depending on your individual circumstances.

4.      What is Peak Debt and End Debt?

For the temporary period where the bank holds a mortgage over both of your properties, this is called Peak Debt. During this period, depending on the lender, all mortgage repayments are paused. When the first property is sold, and you are left with one house and one mortgage, this is called end debt. Interest continues to accumulate during peak debt; the accumulated interest is added the end debt, when the first property is sold. The proceeds of sale from property one, helps to cover any accumulated interest.