How Does A Bridge Loan Work? Here’s The Truth You Need To KnowHow does a bridge loan work? This question resonates with Australian homeowners caught between selling their current property and securing their dream home.
Can you really sidestep the prolonged waiting game, bypass the pressure of selling immediately, and seamlessly transition to your next property? We’re Bridgit, your trusted ally when it comes to bridging loans, and we’ll answer this question and a whole lot more.
Overview of bridging loansHow does a bridge loan work?
Let’s go straight to why you clicked on this article.
How do bridging loans work? A bridge loan operates as a financial ‘bridge’ that aids individuals in navigating the gap between the sale of their current home and the purchase of a new one.
Imagine you stumble upon your dream real estate investment – a perfect home that checks all the boxes. However, you haven’t found a buyer yet for your existing home, your primary source of funding to buy that new house.
This is where bridge financing can help. Rather than pressuring you into a hasty sale of your existing home, a bridge loan grants you the breathing room to wait for the right sale while ensuring you don’t miss out on your dream house.
Why would I need a bridge loan?Whether you’re an expanding family yearning for more space or a retiree looking to downsize, finding a suitable
bridging loan Australia-wide could be a game changer.
Just imagine you’re planning to move to a bigger space. The conventional route can be tedious and may push you into making hasty decisions. Selling before finding that perfect next home? You could be stuck in temporary accommodations, straying from your goal of a bigger space.
For downsizers, the pressure’s similar. Settling out of urgency after selling or missing the perfect spot due to sale delays can be disheartening. A bridge loan offers a smoother transition by letting you buy first before selling.And if you’re still wondering, ‘How does a bridge loan work to my advantage?’ here are a few things that may await you when you partner with us at Bridgit:
Advantages of using a bridge loan from BridgitSeamless transition to your new abode
With Bridgit on your side, you don’t have to languish in waiting games.
Instead of holding out for a buyer, you can make that prompt move to your dream house whilst waiting to sell. A real estate bridge loan helps you avoid missing out on that ideal property, providing a hassle-free transition.
Dodging the double mortgage dilemmaNavigating the financial labyrinth of managing two mortgages can be daunting. But if you know the answer to, ‘How does a bridge loan work?’ you’ll see relief in sight.
At Bridgit, we’ll shoulder the responsibility of settling your existing mortgage. This translates to a singular focus on your new home, so there’s no room for the stress of juggling two mortgages simultaneously.
Now that you know the answer to ‘
How does a bridging loan work?’ how do you actually take one up?
Getting a bridge loanWho can apply for a bridge loan?
Navigating the world of bridge loan eligibility can sometimes feel like a maze, given that each lender has unique prerequisites. At Bridgit, we believe in clarity and accessibility. Potential applicants should simply:
• possess a good credit history;
• be over the age of eighteen;
• be an Australian citizen or permanent resident;
• intend to borrow against a property located in Australia; and
• have a valid government ID, like a passport or driver's licence.
Are there income requirements for a bridge loan?
If you’re sifting through search results for ‘How does a bridge loan work?’ you’ll notice that different bridge loan lenders could have their own income requirements.
At Bridgit, we cater to everyone, may they be PAYG income earners, self-employed individuals, or retirees with income. The specific income requirement may vary depending on your unique situation.
For a comprehensive list of income requirements, feel free to connect with our dedicated customer service team, available on weekdays from 9.00 a.m. to 5.30 p.m. Australian time.
What’s the bridge loan process when applying usually like?
While many traditional lenders still grapple with tedious manual processes, causing delays stretching from weeks to months, Bridgit adopts a tech-first approach.
With us, the online bridge loan application can be completed within five to ten-minutes, followed by a twenty-four-hour approval process. Furthermore, settlements can occur in as little as a few days.
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.
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