Sell with Confidence
Read More
News

Loans for Relocation

By Dan Sowden

If you have found a new home, but yet to sell your current home, you may be entitled to a loan for to help smooth the relocation process (commonly called a ‘bridging loan’).

 When you use a loan for relocation purposes, the lender you choose takes security over both properties and lends against these properties until the sale and purchase process on both is completed. During this loan period, your home loan will generally operate as an interest-only loan. Many lenders offer interest rates comparable to the standard variable rate, or only slightly above.

 When you sell your first property, the proceeds of the sale are applied to the loan used during relocation, and any remainder becomes the end debt or new home loan. At this stage your home loan will usually revert to the lender’s standard variable interest rate or the interest rate you have negotiated.

Loan portability

Many home loans these days have a loan portability feature – either in part or total. Portability allows you to transfer your current loan from your old property to your new one, thereby avoiding many of the setup and ongoing costs associated with a new loan.

 Not all lenders and loans will have this feature so make sure you check with your mortgage broker when you are setting up your home loan.

Loan for relocation pre-approval

It’s a good idea to get an expert on your side to discuss a loan for relocation pre-approval; this way you’ll be ready to sign a contract for the sale or purchase of your new property as soon as you find it.

 Source:  Lindy Kelly, Loan Market Maroochydore

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