Bridging Loans: Your Solution for Seamless Property Transitions
When you're faced with the common dilemma of whether to buy or sell first, bridging loans offer the perfect solution to bridge the gap between purchasing your new home and selling your existing property. AXTON Finance specialises in helping Melbourne residents and Australians nationwide access bridging loan options from banks and lenders across Australia, ensuring you can secure your dream home without the stress of timing constraints. As experienced mortgage brokers, we understand that navigating the property market requires flexibility, and bridging finance provides the financial breathing room you need to make strategic decisions about your property portfolio.
The application process for a bridging loan involves careful assessment of your financial situation, including your borrowing capacity, loan to value ratio (LVR), and the contract purchase price of your new home. AXTON Finance streamlines this process by working with multiple lenders to access some of the best interest rates available in the market. Our mortgage broker team evaluates factors such as your bank statements, existing home loan commitments, and the local property market conditions to determine the most suitable bridging loan amount for your needs. We help you understand concepts like Peak Debt, which represents the maximum amount owed when you hold both properties, and End Debt, which is your position after selling your existing home.
Bridging loan rates can be either variable interest rates or fixed interest rates, with the loan term usually spanning 6 to 12 months to sell your existing property, or up to 12 months if your new property is being built. AXTON Finance works diligently to secure interest rate discounts and favourable terms from our network of lenders, potentially saving you thousands in interest payments. The interest capitalisation feature of most bridging loans means you typically don't need to make monthly repayments during the loan term, as interest is added to the loan balance and settled when you sell your existing property.
Calculating bridging loan repayments requires expertise in understanding how variable loan rates and fixed interest rate loans impact your overall financial position, including considerations for stamp duty and lenders mortgage insurance (LMI). Our experienced mortgage brokers at AXTON Finance provide comprehensive analysis of your bridging loan options, helping you determine whether this short-term financing solution aligns with your property goals. We also explore opportunities to get pre-approved for your ongoing home loan or investment loan, ensuring a smooth transition once your bridging finance period concludes.
Choosing AXTON Finance as your mortgage broker means partnering with professionals who understand the complexities of bridging loans and the Australian property market. Our streamlined application process, combined with access to competitive rates from multiple lenders, positions us as the best mortgage broker choice for your bridging finance needs. Whether you're buying a home in Melbourne's competitive market or anywhere across Australia, our expertise in loan applications and pre-approval processes ensures you're well-positioned to secure the property you want while maintaining financial flexibility throughout your transition period.
