0 Followers
I am about to pay off my unit so will be mortgage free. I will then be buying a house with my partner which will be for approx the same amount as the unit sale price. Is it possible to get a short term home loan so we can buy a house when we see it, then pay off the home loan once the unit sells? Is there any positives or negatives doing this?
Responses
Hi Ansopny,
Yes, that is definitely possible, it is called a “bridging loan”. There are a number of different lenders who offer a product for this and the rates are basically the same as other loans.
Some of the negatives include -
1. Accumulating interest or paying interest while you try to sell
2. Not knowing how much your house will sell for and potentially over-stretching yourself when you buy.
3. Accepting a lower price for your current property because you NEED to sell
4. Getting access to funds to pay the deposit
Some of the positives include
1. Not missing a property you really like
2. Being able to move into the new house at your own pace
3. Having time to clean, repair, prepare and present your home for sale and potentially getting a better price
4. Not living in your home through open for inspections
There are lots of things to consider but if you are currently mortgage free you don’t have as much risk as someone who has a mortgage you should be ok to do it.
I would recommend that you sit with a mortgage broker who can present actual numbers and options for you so you fully understand what you will be facing
Best of luck
Scott
Hi,
Yes it is possible.
It call bridge loan.If you have any questions let me know.
Regards,
Avijit
(0426440379)
Hey Ansopny,
There's actually three ways to do it and bridging is one of them.
I've actually written a blog post about this topic which is worth a read.
Check out the link below:
https://www.simplyaskit.com.au/profile/2188/tim-russell/blog/124/all-you-need-to-know-about-bridging-finance
Moving forward, if you've got any questions don't hesitate to give me a call on 0400 530 868 or email tim@multipartfinance.com.au.
Kind regards,
Tim Russell
Hi Ansopny,
How exciting! Your living a dream many people NEVER get to realize! Owning their home! Well done! ENJOY IT!!
You posted this late last month- I'm curious, how have your plans evolved? Have you received enough information so you can move forward with an informed decision?
As my peers have outlined there are a number of ways to move forward, its often about talking through the most suitable option to ensure it meets your needs.
Would love to help you through that phase if you have not already been through it and it is as simple as a phone call.
I look forward to providing more clarity for you so you can determine the next step.
Regards
Craig Nicholas
0481 383 490
nicholasfs.com.au
nicholasfs@icloud.com