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Alternative To Reverse Mortgage

The Truth About The Bridgit Alternative to Reverse Mortgage

If you’re an older homeowner looking to downsize or rightsize your home, you may have considered looking for an alternative to reverse mortgage loan.

While reverse mortgages seem ideal on paper as housing finance for retirees, they can significantly reduce your home equity over time, affecting what you get when you move out or what you leave for others when you die.

At Bridgit, we understand the complexities of property finance choices for retirees. We’re here to help you make informed decisions about your home equity and how a bridging loan may be just what you’re looking for.

What is a reverse mortgage?

Reverse mortgages are short-term loans secured against property that allow individuals aged sixty or older to turn home equity into non-taxable funds. It’s also suitable for individuals with a lot of home equity options but limited cash reserves, as a reverse mortgage allows them to stay in their home and still receive the funds they need.

With a reverse mortgage, the homeowner does not have to make repayments while living in the home. The mortgage is fully repaid, including interest and fees, when the homeowner sells the house, moves out, or passes away.

Among the drawbacks of reverse mortgages is that they typically carry higher interest rates than standard home loans. They can also limit future home loan options or property equity choices, as the loan must be repaid upon death or moving out.

Homeowners should consider the long-term financial impact of short-term mortgages like this and consider an alternative to reverse mortgage loans instead. To that end, Bridgit is here to offer loan alternatives in the form of bridging loans so that you have choices when it comes to alternative mortgage plans.

Disclaimer: Unless otherwise specified, the opinions expressed in this article are strictly for general informational purposes only and should not be taken as financial advice or recommendations. Any views are subject to change without notice at any time.
Owner-occupied
Investment

Residential Bridging Loan

Buy now, sell later

No monthly repayments
Set-up fee from 0.79%
Min $300K, max $8M

8.24

%
p.a.

Variable rate

We offer an introductory rate for the introductory period of the loan term which includes a 1% discount.
We offer an introductory rate for the introductory period of the loan term which includes a 1% discount.
i

8.33

%
p.a.
Comparison rate
Apply now
Up to 12 month loan term
Up to 80% LVR
Downsizers, upsizers, retirees

Residential Bridging Loan

Buy now, sell later

No monthly repayments
Set-up fee from 0.79%
Min $300K, max $8M

8.74

%
p.a.

Variable rate

We offer an introductory rate for the introductory period of the loan term which includes a 1% discount.
We offer an introductory rate for the introductory period of the loan term which includes a 1% discount.
i

8.84

%
p.a.
Comparison rate
Apply now
Up to 12 month loan term
Up to 80% LVR
Downsizers, upsizers, retirees
The Bridgit Loan Calculator

Buy now, sell later

$
$
$
$
Buy new property
(less contribution)
$800,000
Existing
mortgage
$500,000
Sell existing
property
$2,000,000
Your estimated loan calculation
Estimated principal amount
$1,300,000
Your cash after sale
$700,000
Estimated principal amount
$1,300,000
(LVR 43%)
Based on the information provided your Loan to Value Ratio (LVR) may be too high. To help you we require some additional information; feel free to get a quote or schedule a call with our team.
Get a quote

Please submit an application or quote to receive a detailed breakdown of your loan amount.

Get 24 hour approval

Apply nowSchedule a call

Why buy before you sell with Bridgit?

No income verification

We assess loans based on property equity and asset position.

No monthly repayments

No monthly repayments or fees for the duration of the loan term

No double mortages

We’ll pay your existing mortgage, so you don’t have to worry about two mortgages at once.

Save on temporary living

Move into your home sooner and avoid short-term rental, storage and moving costs.

No missed opportunities

Don’t miss out because of slow processes, unlock your property equity in 24 hours.

Apply nowSchedule a call

Trusted by customers
who Bridgit

Customer Service at its best.

Everyone I dealt with at Bridgit was helpful and responsive. Candice (BDM) checked in with me regularly to make sure everything was going smoothly and Andrew kept me in the loop. I recommend Bridgit highly.
- Sue Farnham
Trustpilot

Get 24 hour approval with Bridgit

01

Submit application

Apply online and receive 24 hour approval. Tell us some details about yourself and see how much you can borrow.

02

Accept the offer

Accept your loan offer by making a small upfront deposit and progress your application to the next stage.

03

Purchase your property

Apply online and receive 24 hour approval. Tell us some details about yourself and see how much you can borrow.

*Subject to the loan scenario and outgoing lender processes onrefinance (if applicable).

04

Sell

Sell your existing property and pay down your Bridgit loan. No rush, you have up to 12 months.

Apply NowSchedule a call
The Truth About The Bridgit Alternative to Reverse Mortgage

If you’re an older homeowner looking to downsize or rightsize your home, you may have considered looking for an alternative to reverse mortgage loan.

While reverse mortgages seem ideal on paper as housing finance for retirees, they can significantly reduce your home equity over time, affecting what you get when you move out or what you leave for others when you die.

At Bridgit, we understand the complexities of property finance choices for retirees. We’re here to help you make informed decisions about your home equity and how a bridging loan may be just what you’re looking for.

What is a reverse mortgage?

Reverse mortgages are short-term loans secured against property that allow individuals aged sixty or older to turn home equity into non-taxable funds. It’s also suitable for individuals with a lot of home equity options but limited cash reserves, as a reverse mortgage allows them to stay in their home and still receive the funds they need.

With a reverse mortgage, the homeowner does not have to make repayments while living in the home. The mortgage is fully repaid, including interest and fees, when the homeowner sells the house, moves out, or passes away.

Among the drawbacks of reverse mortgages is that they typically carry higher interest rates than standard home loans. They can also limit future home loan options or property equity choices, as the loan must be repaid upon death or moving out.

Homeowners should consider the long-term financial impact of short-term mortgages like this and consider an alternative to reverse mortgage loans instead. To that end, Bridgit is here to offer loan alternatives in the form of bridging loans so that you have choices when it comes to alternative mortgage plans.

Disclaimer: Unless otherwise specified, the opinions expressed in this article are strictly for general informational purposes only and should not be taken as financial advice or recommendations. Any views are subject to change without notice at any time.

Bridging essentials

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Aussie based crew

We’re here to help, if you have any questions get in touch.

Weekdays 9am – 5:30pm

1300 141 161
Apply nowSchedule a call
Find your BDM here

Disclaimer
‍
Eligibility and approval is subject to standard credit assessment and not all amounts, term lengths or rates will be available to all applicants. Fees, terms and conditions apply.
‍
^Comparison rate is calculated on a $150,000 secured loan over a 25-year term. WARNING: Comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in different comparison rates. Comparison rates for interest only loans will not reduce your loan balance. This may mean you pay more interest over the life of the loan. Bridging Loan set up fee is from 0.79% and government charges apply.