|
|
Unique Service ... Unique Choice
|
|
|
|
I want to buy before selling
| |
The loans for this purpose are referred to as "Bridging" or "Go-Between" loans. They allow you to borrow against your existing equity to buy the home you want before you have sold your current home. Interest is calculated daily on a bridging loan amount. This amount includes the purchase price of the new home plus purchase costs and any existing loan balance.
A pre-approval is a prerequisite for obtaining a deposit bond if you don't have a 10% cash deposit to secure your new property. Generally, the lender will value your existing home at pre-approval stage.
|
trap
|
Your equity can begin to diminish quickly if you don't get a buyer for your property in the first few weeks or if the property market goes into decline. You may also experience financial hardship if you are required to make repayments on the entire bridging loan amount during the bridging period.
| |
tip
|
Plan to sell your current home before you exchange contracts on your new property. Include an extended settlement period in your contract so you can have a simultaneous settlement with your new home purchase. If you do want to buy before selling, plan for the worst case scenario and obtain a pre-approval. Not all lenders offer bridging loans and those that do have different guidelines so contact Unique Home Loans for help.
|
|
|
|
GPO Box 3802 NSW 2001 Sydney Australia Tel: (02) 9439 1595 Fax: (02) 9439 1598
Email: info@uniquehomeloans.com.au
Copyright © 2005 Unique Home Loans
Design by Flexibiz Solutions | 
