Bridging Finance

First of all, what is Bridging Finance? Why would you need it?

Bridging Finance is the type of funding that helps you bridge the gap between borrowing for your new home and selling your old home.

To be honest, you need a strong amount of Equity to borrow using Bridging Finance as you aren’t able to get Lenders Mortgage Insurance with this type of loan (at the time of publication)

There are different ways to calculate Bridging Finance and it can be made up of something called (ICAP) Interest Capitalised where you add the interest of the 2 loans over say a 12 month period OR where you make interest only repayments from your savings to cover the difference.

Either way, Bridging Finance is one that is best done with your trusted broker so it can be done in a way suitable for your needs!

Either way, Bridging Finance is one that is best handled by your trusted Noosaville mortgage broker so it can be structured in a way that suits your individual needs. If you're also navigating the sale and purchase process, it's worth understanding how refinancing could also play a role in your strategy.

Sometimes you need to refinance your existing home loan to make it work. You almost always need a Mortgage Broker to help with Bridging Finance as the process can be involved and needs to be carefully considered. We’re a Mortgage Broker in Noosaville, but we work with clients in Noosa, Tewantin, Noosa Heads and in fact, Australia wide!