Short Term Home Equity Loan

A Complete Guide To Short Term Home Equity Loan

Looking for a short term home equity loan?

Many Australians, when in need of financial assistance, turn to their properties as a valuable asset. However, finding a short term home equity loan offer that caters to their needs, lifestyle, and purpose can be a daunting task.

At Bridgit, we’re here to give Australian homeowners a suitable finance option. Read along as we answer your questions and learn more about equity loans.

What is a short term home equity loan?

A short term home equity loan is a kind of property loan where you can borrow money against your equity value. In equity financing, this pertains to the difference between your property’s market value and the mortgage you owe.

These short term home loans present a concise, flexible option for homeowners in need of a fast cash loan or quick loan for purposes such as investments, bill payments, home renovation, debt consolidation, and even securing a new home.

How does a short term home equity loan differ from a traditional mortgage?

Both traditional mortgages and short term home equity loans use home equity, but they serve different purposes and have different structures. Traditional mortgages, a form of long-term property loan, usually extend from fifteen to thirty years and are primarily used for purchasing property.

In contrast, a short term home equity loan, often spanning from three to twelve months, can address immediate and diverse financial needs aside from improving on buying a home. It’s a loan you could get after you’ve been paying your mortgage for a while and you need financing. Generally, a short term home loan lender also requires less paperwork than traditional mortgages.

Can I use a short term home equity loan for any purpose?

You may use a short term home equity loan for a range of purposes. There are several types of short term property funding, each tailored to meet specific financial needs.

For example, caveat loans, one form of short term loan, allow homeowners to borrow against the equity in their current property. This type of loan is secured using a caveat against the property title, meaning the property can’t be sold while the loan is in effect. They are typically used for urgent financial needs, like covering unexpected personal or business expenses.

Another type is equity release loans. This type of loan enables homeowners to access their property’s equity without the need to relocate. With no regular repayments, the loan and accrued interest are settled when the property is sold.

Finally, bridge loans are a kind of short term property loan that can be used by homeowners transitioning between selling their current home and purchasing a new one. This type of loan is particularly beneficial when you find your ideal property but haven’t yet sold your current home, especially when it’s the primary funding source for that new purchase.

For expanding families needing more space, a bridging loan ensures that the search for a larger home isn’t constrained by the sale timeline of their current house. This financial cushion reduces the risk of having to settle for less-than-ideal living arrangements or being forced into hasty decisions.

Similarly, for retirees looking to downsize, bridging loans can ease the transition. They eliminate the stress of synchronising the sale of their current larger home with the purchase of a smaller, more manageable property.

So, if your specific purpose for securing short term property loans is to access the financing you need to buy your new home before selling your existing home, then it’s time that you learn how we at Bridgit can help.

Getting a bridge loan from Bridgit

At Bridgit, we revolutionised the process of securing a short term home equity loan, more specifically a bridge loan, providing Australian homeowners with a swift, hassle-free experience.

Unlike traditional lenders that have lengthy, manual processes, our approach is tech-driven, ensuring efficiency and speed. Our online bridge loan application is simple and takes five to ten minutes to complete, and we offer a twenty-four-hour approval process. What’s more, settlements can be finalised in as little as a few days, propelling you towards your next dream home without unnecessary delays.

We set ourselves apart from traditional lenders by offering no monthly fees or early repayment fees.

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.