What is Relocation Loan or Commonly Known as Bridging Finance?

A relocation loan allows a purchase of a home before selling an existing property. This loan amount can also include the deposit, stamp duty and costs on a new property by means of a refinance from another Bank or increase of an existing loan.

Relocation loan commonly known as Bridging Finance.

A relocation loan allows a purchase of a home before selling an existing property. This loan amount can also include the deposit, stamp duty and costs on a new property by means of a refinance from another Bank or increase of an existing loan.

If building a new home, a relocation loan can be used to purchase the land and construction. Customer can remain in existing home until the new build is complete.

CASE STUDY FOR BRIDGING FINANCE

John and Jane have fallen in love with a new property however haven’t sold their existing property before the settlement of the new home.

John and Jane are in their early 40’s and are upsizing as they have 2 children and the current home isn’t large enough anymore.


John and Jane need to service for the end debt. End debt is calculated as current loan + new home purchase price + stamp duty - own funds contributed + capitalized interest + selling cost of old home - valuation of old home. Depending on lender, buffer margin will be added on current home value. In case the end debt is zero - there may be no servicing required. Existing home or land plus build both can be achieved on relocation loan / bridging finance. John and Jane will need to sell the home is specified period of time i.e. 3-12 months depending on the lender Full valuations required on both properties.


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