Short Term Home Loan

Bridgit’s Guide To A Short Term Home Loan

If you’re considering your housing loan options, you may have wondered about a short term home loan. After all, it’s important to understand all your available pathways before making a major financial decision that involves your home.

For those who are looking to downsize or upsize in terms of real estate, Bridgit’s bridging loans may provide an alternative that lets you tap into your current property’s equity. Read on for our comprehensive guide to comparing short term home financing options.

Short term home loans

What are they?

A short term home loan or mortgage matures in around five to fifteen years, which is shorter than the thirty-year loan term of a traditional mortgage. It should be noted that loan terms can vary widely from lender to lender.

What are the benefits?

What are the advantages of temporary mortgage setups? These alternative home loans give individuals a chance to condense their mortgage repayments into shorter terms, which allows them to attain full ownership or increase equity in their homes at a faster rate.

These short term home loan options are also less exposed to long-term market interest rate fluctuations, which could be an advantage in an environment of rising rates.

What are the drawbacks?

A short term home loan does not necessarily translate to quick loan approval. Lenders may need to do a more stringent financial analysis of a prospective applicant’s profile and creditworthiness, which could make a quick approval loan potentially unlikely.

However, there may be various reasons you’re interested in short term property loans. You may be entering or well into retirement and are finding it difficult to maintain your current home. Empty nesters may be looking to downsize to keep day-to-day life more manageable.

On the flip side, your family may have just begun to grow, and you need a short term loan to buy property that’s suitable for your new life as parents. In these cases, we at Bridgit may be able to help.

Bridge it with Bridgit

Your dream home within reach

Securing a short term home loan can be difficult to coordinate. Once you’ve sold your current home, finding your next home may take longer than expected, which drives up costs spent on temporary housing or storage fees.

Alternatively, you may have already found your ideal new home, but it is taking some time to sell your current property, during which time your dream home may be purchased by another buyer.

With this in mind, Bridgit’s mission is simple. Our goal is to give Australian homeowners the opportunity to tap into the current equity value of their home via short term loans secured against property. This equity can be converted into funds to quickly purchase their new property.

A convenient application process

You can end your search for a short term home loan with our bridging loan and enjoy a seamless application process. Technology helps us streamline lending and create a truly seamless experience for you. We offer a twenty-four-hour approval process, and settlement in as little as a few days after we receive your application, which takes five to ten minutes to complete.

How it works

Bridgit offers a short term home loan term of up to 12 months. Plus, we refinance and take a first mortgage on your current home, so customers don’t have to worry about managing two mortgages.

You can pay off your Bridgit loan with the proceeds from the sale of your existing home. Homeowners can refinance any remaining loan balance, if there is any, to a traditional lender, which typically occurs when upsizing. If you’ve downsized, there’s a good chance there won’t be a remaining balance after your property has been sold, allowing us to immediately release security over all your properties.

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.