What Is A Bridge Loan

A common concern many people have after asking ‘what is a bridge loan?’ is when they should get one. You can apply for a bridge loan for the following scenarios:

You want to move into your dream home fast.If you want to settle into your ideal retirement home or move to a bigger home for your growing family without waiting too long, bridging property finance is ideal. As long as you have property equity over your existing property, you can borrow money to make a downpayment for your new home or even pay for it in total if you can get enough funds.

You need more time to prepare your home for sale. It can be a real struggle to buy and sell your home simultaneously. When you get bridge funding, you can worry about selling your existing home later to make the necessary renovations, paperwork, or other arrangements needed for your property sale. This allows you more time to find the right buyer and sell your home at the right price.

You want to save on temporary storage and moving costs.In the past, when you sold your home first before buying a new one, you needed to rush to find a new house and move your things into it, which will not only is inconvenient but costly as well. Nowadays you can get enough time to move and arrange your things in your new home with gap financing, you can also save on temporary storage and moving expenses.

Whatever your reason for asking ‘what is a bridge loan’, Bridgit can help! We can lend you up to $4,000,000 over 12 months – more than enough time for most people to move into their new homes and sell their old ones. The bridging loan amount you can borrow from Bridgit depends on your property equity and your property type. You can borrow up to 80% for residential properties and 50% for vacant land.

Aside from ‘what is a bridge loan?’ many Australians also ask if they need to get an appraisal when they get bridge loan financing. Not all lenders require an appraisal, but many of them conduct property valuation as part of the loan approval process. Unlike an appraisal which is used as a guide for pricing a property for sale, a property valuation determines the actual market value of a property.

To offer you a fair deal, experts will conduct the valuation process for you when you get a loan from Bridgit. We will determine your valuation fee based on factors such as the size of your property, its location, the fixtures and fittings it has, its condition, and many more. Our Aussie-based crew will carefully prepare the valuation for you and let you know how much you can borrow so you don’t have to use a random bridging loan calculator, which doesn’t always give accurate cost estimates.

You are welcome to schedule a call with us for any questions regarding your property valuation or other enquiries such as ‘what is a bridge loan’.

Compared to traditional long-term loans, bridging finance loans get approved much faster in just a few weeks or even days with the right lender. However, the duration of your loan process depends on your lender’s specific loaning process and how fast you comply with the requirements. Advanced technology allows online lenders to process loan applications more quickly than traditional banks.

At Bridgit, you can complete your application in under ten minutes and get approved within 24 hours. After completing your application, our team will reach out to ask you a few questions and give you a personalised loan offer. Simply make a small deposit (from $900) and payment for the valuations to confirm, and we will proceed to the valuation and verification processes. You may affix your signatures electronically, and settlement is possible in as little as a few days.

With Bridgit you don’t have to worry about monthly repayments either; you can pay back your loan in full by the end of your loan term or after selling your existing property.

Now that you know the answer to ‘what is a bridge loan’, waste no time and apply for a Bridgit loan! Apply now and get an outline of bridging finance rates and fees tailored to your unique loan scenario!