Newspaper article The Chronicle (Toowoomba, Australia)

Create a Bridge in Finance

Newspaper article The Chronicle (Toowoomba, Australia)

Create a Bridge in Finance

Article excerpt

COMMONLY, people find themselves in the predicament of trying to sell an existing property while simultaneously buying another, therefore needing to borrow finance to 'bridge' the gap.

This is called bridging finance. A bridging loan is provided by the lender in the form of a line of credit, typically an interest-only loan that lasts for a period of six to twelve months, says Loan Market.

While a change in lifestyle is generally the biggest motivator for someone to need bridging finance, there are different contributing aspects that should be taken into account.

Current market conditions, timing, the right season and financial circumstances are just some of them.

How it works

This type of loan allows funds to be secured so the buyer doesn't have to wait to sell the current home before entering a sale on their next property.

Although a bridging loan can assist with the transition between property selling and buying, it may not always be the right choice for everyone. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.