Home Equity Loan Alternatives

What You Should Know About Home Equity Loan Alternatives

Securing your dream home can sometimes feel like a race against time, leading you to search for home equity loan alternatives. For example, you might have found the perfect new place but are having trouble selling your existing home quickly enough to make the purchase.

This is where Bridgit steps in, offering bridging loans that act as a practical alternative to traditional home loans. In this article, get to know more about how we can help you get your dream home without having to rush into selling your current home.

How does a home equity loan work?

When you’re sitting on a significant amount of equity in your home, it might seem like a no-brainer to tap into a home equity loan for extra funds. Maybe you’re eyeing a major renovation, consolidating debts, or just facing unexpected expenses, and a home equity loan comes to mind right away.

But before you commit, it’s crucial to understand not just how home equity loans work but also how they stack up against other borrowing options like bridging loans, which we’ll delve into shortly.

Home equity loans let you borrow against the equity you’ve built in your home. When you apply, lenders usually look at your home’s current value while considering what you still owe, along with your credit history and income. If you’re approved, you typically get the loan amount in one lump sum and start paying it back over time with a fixed interest rate.

Sounds straightforward, right? But there’s a catch: your home is the collateral. So, if you can’t make those payments, you risk losing your home through foreclosure. This is why, before committing to a long-term home equity loan, consider what home equity loan alternatives you have on the table.

Bridging loans: A smart home equity loan alternative

When considering your home financing options for acquiring a new property, bridging loans might just be the practical solution you need. These short-term home equity loan alternatives are designed to bridge the gap between purchasing your new dream home and selling your current one.

You probably already know this: timing is everything in real estate. If you find yourself needing to secure funds quickly for a new purchase before you’ve managed to sell your existing property, a bridging loan might be just what you need. This type of property financing can help during this transition period, ensuring you don’t miss out on your future home due to a timing mismatch.

Buy your dream home before selling your current home with Bridgit

At Bridgit, we understand the challenges homeowners face when moving from one home to another. Since our inception in 2021, we‘ve been driven by a clear mission: to remove the traditional barriers to buying your next home by allowing homeowners to buy now and sell later.

What do we do? We provide Australian homeowners with the opportunity to leverage the current equity in their homes through bridging loans. Unlike traditional lenders of home equity loan alternatives, our bridging loans come with no annual fees, monthly fees, or early repayment fees; only a set-up fee.

As you transition to your new home, Bridgit is here to ensure that your journey is as smooth and stress-free as possible. We’re redefining what it means to secure short term property loans and providing home equity loan alternatives you can rely on. With us, you’re not just finding a lender; you’re discovering a partner committed to helping you move into your dream home with confidence and ease.

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.