Bridging Finance Loans

We are experts in calculating bridging finance figures so you can make informed decisions and buy before you sell with confidence.

 

Purchasing your next home can be a little daunting if you rely on the sale proceeds of the property you’re selling. If you purchase before you sell that can put a lot of pressure on having to sell in time. And selling before you have purchased can cause pressure to find your next perfect home in a short time frame.

Bridging finance takes the headache out of this and provides options for you to sell your home up to 12 months after the settlement of your next purchase.

What is Bridging Finance?

  • Bridging Finance is a short-term home loan designed to help homeowners manage the financial gap between purchasing a new property and selling their current one.

  • Bridging Finance allows you to obtain the funds needed to secure a new home while waiting for the sale of the existing property to be completed.

  • Bridging Finance can cover the balance of your new property purchase while allowing flexibility to sell your current home on your own timeline, usually within 12 months.

  • Bridging Finance can ease the stress of transitioning between properties, offering interest-only payments during the bridging period and flexible repayment options.

Current Lending Policy

  • Maximum Peak Debt LVR is 80%.

  • Interest Only options available on Peak Debt.

  • Residual loan reverts to competitive interest rates.

How Rosh Partners can help you with Bridging Finance?

At Rosh Partners, we specialise in bridging finance solutions that provide quick access to funds when you need them most. Whether you're looking to secure a property before selling your current home, or need short-term financing to capitalise on a unique investment opportunity, our experienced team will guide you through the process. With over 20 years in the mortgage and finance industry, we understand the intricacies of bridging loans and can tailor a solution to meet your specific needs, ensuring a smooth and efficient experience.

Here’s how we can assist you:

  • We’re Experts at Modelling your Numbers - Our brokers use detailed bridging finance worksheets from a variety of lenders to accurately calculate your peak and residual debts. Speak to one our brokers today to go through your own figures.

  • Equity & Bridging Solutions - If you're selling your current property to purchase a new one, our brokers will help you unlock the equity in your home. Bridging Finance allows you to purchase a new home before selling your current one, so you won’t have to rush your sale.

  • Tailored Loan Structures & Competitve Rates - We work with over 60 leading lenders to secure the best possible mortgage for your new home. Whether you're looking for a fixed-rate, variable, or offset mortgage, we compare a wide range of options to suit your financial goals.

  • Seamless Transition Between Homes - Our team understands that buying your next home can be stressful, especially when balancing the sale of your current property. We handle the complexities of coordinating settlements and timing your finances, so you can focus on making your next house a home.

Other Factors to Consider when Buying Your Next Home

Timing is everything. Here’s some points you need to consider:

  • Do you need to sell your current property in order to purchase your next home?

  • Are you able to hold your current property and turn it into an investment property?

  • Will you be selling your current home before or after buying your next home?

  • Does your existing lender offer Bridging Finance options?

  • If you purchase your next home before selling your existing home, will you be able to sell in time, and what happens if you don’t?

Frequently Asked Questions

  • Yes, you can pay down your bridging loan early. Many lenders allow early repayment without penalties, but it's essential to check your specific loan agreement for any terms or conditions that may apply.

    Early repayment can help reduce the overall interest you pay, allowing you to save money in the long run.

    If you have any questions about your options or the process, our team at Rosh Partners is here to assist you. We can help you understand your loan terms and strategise the best approach for your financial situation.

  • If you are downsizing or have enough sale proceeds or savings to contribute to buying your new property outright, you may not need an ongoing Residual Loan.

    At Rosh Partners, we broker lots of Bridging Loans with nil end debt, meaning your sale proceeds are sufficient to pay off all of the associated debt.

  • Repayments on bridging finance typically depend on the terms of your loan agreement. Generally, there are two main types of repayment structures:

    1. Interest-Only Payments: During the term of the bridging loan, you may only pay the interest accrued, which can keep your monthly costs lower. If there is a Residual Loan. repayments on that loan are usually set to principal and interest once the property you are selling has been sold.

    2. Full Repayment: Alternatively, some loans may require you to repay both the principal and interest either monthly or at the end of the loan term.

    The repayment schedule is usually designed to align with your exit strategy, such as selling a property or securing longer-term financing. At Rosh Partners, we will work with you to find a repayment plan that fits your financial situation and goals, ensuring clarity throughout the process.

  • Before taking out a Bridging Loan, you should be confident that you can sell your home and pay down the loan within your agreed term of up to 12 months.

    If, during the bridging period, you do not believe you will be able to sell your current home, then you should contact your Rosh Partners broker as soon as possible. They will help you understand your options.

  • Getting your finance pre-approved before you make any decisions is always a very good idea. While not strictly required, getting a home loan pre-approval can be highly beneficial, especially in a competitive housing market. Here’s why:

    1. Know Your Budget

    • A pre-approval provides you with a clear understanding of how much you can borrow based on your financial situation. This helps you focus your property search within your price range, saving time and preventing disappointment.

    2. Strengthen Your Position as a Buyer

    • Pre-approval shows sellers and real estate agents that you're a serious buyer with financing already conditionally secured. This can make your offer more attractive and give you an edge over buyers who haven’t been pre-approved.

    3. Avoid Surprises

    • During the pre-approval process, your lender will assess your financials (income, savings, credit history) to give you an accurate borrowing estimate. This way, you can address any issues or discrepancies early on, reducing the chance of surprises later.

    4. Faster Loan Approval

    • Having pre-approval can speed up the loan approval process once you’ve found the right property. Since much of the groundwork is already done, the final approval can be quicker and smoother, which is especially helpful when dealing with tight settlement timelines.

    5. No Obligation

    • A pre-approval is typically valid for 3-6 months, and while it gives you a better idea of your borrowing power, you're not locked into a particular lender or loan until you proceed with a formal application. This gives you flexibility if your circumstances change.

    When Might You Not Need Pre-Approval?

    • In certain situations, such as if you're making an unconditional cash offer or if you’re a returning buyer with extensive equity, pre-approval may not be essential. However, even in these cases, knowing your borrowing capacity is still helpful.

    Final Thoughts: While it’s not mandatory, getting pre-approval can provide peace of mind, clarity, and a competitive edge when buying a home. It’s a smart step in the home-buying process, especially if you’re serious about securing your next property. A mortgage broker can guide you through the pre-approval process and help you find the best loan options based on your needs.

Why use Rosh Partners as your broker

We take the complexities out of choosing the right loan, making it easier for you to make informed financial decisions

  • We have time for you. Our brokers work directly with you throughout the home loan journey. We answer your call when you call and action everything digitally, fast and efficiently

  • We liaise with all third parties including your solicitors, buyers agents so that there are no last minute surprises

  • We periodically review your loan post settlement to ensure your rate remains competitive throughout the term.

Talk to us today