Frequently Asked Questions

What are the benefits of choosing a short term mortgage?

As you consider various short term property loans, make sure that you study the options and weigh the pros and cons, especially when it comes to short term mortgages.

One of the benefits of a short term mortgage is potentially helping speed up the process of building your home equity. Equity pertains to the difference between the market value of your house and the remaining mortgage balance. This will grow faster since you’ll be allocating a larger portion of your monthly payment to the principal loan instead of the interest.

This accelerated equity growth can be beneficial if you have plans to sell your home in the future. It will also help if you have a sudden need to tap into your home equity to finance needs, including education expenses or home improvements.

Another benefit of this mortgage option is that you will own your home outright in a shorter period of time. This could be especially appealing to people who have laid out their long term financial goals and those who are nearing retirement.

However, you must also consider the disadvantages of short term mortgages before getting one. Despite the benefits, it also means that since you will be paying for the loan for a shorter time, your monthly short term mortgage repayment plans could be higher.

Moreover, even the best short term mortgage lenders will often have stringent requirements on who will qualify for these home loans. You can’t expect a short approval process in this instance, as lenders will have to thoroughly consider your ability to pay for the mortgage financing and abide by the loan terms.

Are interest rates lower for short term mortgages?

Rates can differ among short term private lenders. However, some short term lenders offer an initial interest-free period for bridging loans. This means that if you pay off the loan within the provided period, you won’t have to pay any interest.

Nonetheless, as the borrower, you must consider your overall financial situation when choosing your loan option, not just the potential interest rates. Are you up for short term home loans, or is it best to find alternative home loan lenders?

What is the maximum loan amount for a short term mortgage?

The maximum loan amount you can get approved for short term mortgages can vary significantly based on the specific mortgage product you’re applying for, your financial situation, and the lender’s policies. They can have more variable limits, unlike their long term counterparts.

Lenders will evaluate your capacity to pay the monthly dues in the probable span of years you would need to pay the loan. You will know more about these qualifications for borrowers set by different lenders when you search for ‘short term home loans Australia’.

Bridgit offers an alternative to reverse mortgage option and short term mortgages via our bridging loan product. This is most suited for those who intend to sell their homes, as bridging loans allow them to buy a new house before selling their current one.

You can opt for this loan option whether you are downsizing or upsizing. In both cases, we will offer you no monthly repayments. This means you’ll have enough time to consider your options for selling your old house.

Bridgit: making it easier to acquire your dream home

Bridgit offers innovative solutions in property financing. Our mission is to empower Australians with the ability to transition into their dream homes without the immediate need to sell their current properties.

We don’t just offer loans; we offer progress. Our bridging loans are designed for today’s dynamic real estate market, providing flexibility and agility in property transactions.

We adapt to the unique financial situations of each homeowner, whether it’s a family expanding or someone looking for a more manageable home. We offer bridging loans that fit different situations for many Australian homeowners.

We invite you to explore our innovative financial solutions at Bridgit and join the multitude of satisfied homeowners who’ve found their path to progress with us. There’s no need to look up terms like ‘short term mortgages’ or ‘loan for short term rental property’. Submit an application with Bridgit today!