Bridging Home Loans

This can simplify the transition between properties. If your home is for sale - and you find a property to buy, or wish to build - the lender advances the money so you can purchase your new home.

When your original property is sold, the proceeds are deposited to the new loan. The amount owing becomes your end loan and normal repayments commence.

Pros:

  You can buy or build your new home before you sell your existing home.
  You can avoid moving into a rental property and move directly into your new home.

Cons:

  Interest is charged on the full amount of the new loan.
  If you don't sell your existing home quickly your debt could add up
  It may force you into selling your existing home at a price lower than you want to.