We help Australians looking for a Bridging Loan
Navigating the intricacies of buying and selling property can be challenging. Simple Lending is here to help you access Bridging Loan options from banks and lenders across Australia, making the process smoother and more manageable. Whether you're buying a home before selling your current one or vice versa, our expertise ensures you bridge the gap effectively, without undue stress.
A Bridging Loan is a short-term loan designed to help you manage the financial gap that can occur when buying a new property before selling your existing one. The loan term typically ranges from 6 to 12 months, depending on whether you are selling your current property or constructing a new one. Understanding your borrowing capacity and the specific details of the loan, such as the loan to value ratio (LVR), is crucial. At Simple Lending, we guide you through calculating Bridging Loan repayments based on variable and fixed interest rates, ensuring you are well-informed about your financial situation.
Interest rates play a significant role in determining the cost of your Bridging Loan. We help you compare variable interest rates and fixed interest rates, so you can choose the best option for your needs. Additionally, we provide insights into potential interest rate discounts that may be available based on your credit history and financial profile. We also explain the concept of Interest Capitalisation, which allows you to defer interest payments until your current property is sold, easing cash flow concerns during the transition.
Applying for a Bridging Loan involves understanding the application process thoroughly. Simple Lending ensures a streamlined application process, helping you gather necessary documents like bank statements and other financial records. We also assist you in getting pre-approved, so you can act quickly when opportunities arise in the local property market. Loan pre-approval gives you a clear picture of your borrowing capacity and strengthens your position when negotiating the contract purchase price of your new home.
An important consideration when opting for a Bridging Loan is whether to buy or sell first. Each choice has its benefits and drawbacks. If you buy first, it secures your new home but may increase financial pressure if your existing property takes longer to sell. Conversely, selling first gives you a clear budget for your next purchase but may leave you temporarily without a home. Simple Lending provides expert advice tailored to your circumstances, helping you make an informed decision that aligns with your financial goals and the dynamics of the local property market.
We also explain additional costs such as stamp duty and lenders mortgage insurance (LMI), which may impact your overall budget. By understanding these expenses upfront, you can plan more effectively and avoid unexpected financial strain.
Once you've chosen the right Bridging Loan option, we support you throughout the process. From initial application to final approval, our team ensures that every detail is managed efficiently. We help you explore features like an offset account, which can reduce interest costs during the loan term. Additionally, we provide guidance on managing Peak Debt—the amount owed before selling your existing property—and End Debt, which is the balance remaining after the sale.
Ultimately, Simple Lending aims to make your property transition as seamless as possible. Our expertise in Bridging Loans ensures that you are well-prepared to handle the complexities of buying and selling homes simultaneously. By offering personalised advice and a streamlined approach, we help you achieve your property goals with confidence.
Ready to explore Bridging Loan options? Contact Simple Lending today to discuss your needs and get started on a path towards a smooth property transition. Our team is here to provide expert guidance and support every step of the way.
