Sell with Confidence
Read More

Buying a Home Before You Have Sold

From time to time you’ll come across a buyer who needs to buy a new home before they sell their existing one. The good news is that there are options out there to help these clients.

A bridging loan – or a relocation loan as it is sometimes known – allows a buyer to exchange on a new property before their existing property sells.

What is a bridging loan?
This type of finance gives a borrower a second loan for an interim period while they sell their existing property. They have to be in a position to service a new loan, whilst maintaining an existing loan – which is why it’s important for these buyers to speak with a broker before making a decision.

Bridging finance usually comes with higher costs compared to regular loans. If a buyer has confidence that their current property will sell, and they have the financial capacity to be able to carry all the costs, such as interest on both mortgages, then it might be an option to consider.

A bridging loan usually gives a buyer the green light to exchange on a new property before their existing property sells. It kicks in upon settlement of the new purchase and the borrower pays interest on it until the sale of their former property goes through. It’s at this point that the money from the sale transfers to paying off the bridging loan – this could pay off all of the loan of a portion of it, to lower the overall mortgage.

Remember, every lender is different and some will not even offer this finance option. If you think a relocation loan might suit your needs, speaking to a broker will help you determine if there’s an option out there that will work for you.

Contact us today on 07 5443 2000 to discuss your options.

Up to Date

Latest News

  • Teamwork makes the dream work at Ray White Maroochydore

    When it comes to case studies in real estate, often the sale price is the hero of the story. In this case however, it’s the team behind the $1.3million sale who are the true heroes. When the owners of 16 Chardonnay Court in Buderim were looking to sell their beloved … Read more

    Read Full Post

  • Proactive approach builds value in the face of construction

    When it comes to selling waterfront properties, Ray White Maroochydore real estate agent Niall Molloy is no stranger to listing contemporary waterfront apartments. In fact, for most sales agents, listing properties like this is a dream come true. A dream nonetheless, for apartment complexes along the developing Maroochydore waterfront, ongoing … Read more

    Read Full Post