Bridging Finance and Mortgages
Caught between two properties, the bank said 'no' and you need help bridging the gap?
Bridging Finance, sometimes called a Bridge Loan, is a loan taken for a short period and applies to people who already own property.
The most common example is if somebody has purchased a new home, or made an offer, and is struggling to sell their existing property. The right kind of loan can help you bridge the gap.
A bridging loan may apply if:
- Perhaps you have been transferred to another part of the country and you have to go now, but your existing home is still on the market.
- Or maybe you have found your dream home and don’t want to lose out while you try to sell your current property.
- People building a new home may need to finance construction of the property while they are living in their existing house, with plans to sell once they can move into the new property.
A bridging loan can help your transition from one property to the next. You would think that banks would understand the big picture, but even the banks are constrained by things like the Responsible Lending Code, which precludes them from lending to somebody who they think may be in a precarious or unstable situation.
As a result, and unlike normal mortgages, a bridging loan is more expensive than the average mortgage, but it is designed to be short term, to help you get over the hump or until a more permanent arrangement can be made.
If you would like us to assist you with finding finance for your bridging loan or to secure any type of bank loan, please complete the short enquiry form and one of our specialist LoanPlan consultants will be in contact today.
Alternatively, call us on 0800 56 26 75 (0800 LOAN PLAN). No matter where you live, in Auckland, Christchurch, Dunedin, Wellington or Hamilton, we can help.