loans.com.au Launches New Bridging Loan for Homebuyers

loans.com.au is excited to announce the launch of its new bridging loan, which will help homebuyers purchase their new home before selling their existing one.

A bridging loan is a loan that includes a short-term bridging period that covers the gap between the purchase of the new home and the sale of the old home, ensuring a smooth and financially-manageable transition for homeowners.

Marie Mortimer, Managing Director of loans.com.au, said the new loan would open up new options for homebuyers who previously had been stuck with the inconvenience of selling their old home before buying a new one.

“Buying your new home before selling your old one has many advantages but without bridging finance, it is beyond the means of many buyers,” Mr Mortimer said.

“Our new, streamlined bridging loan overcomes that problem, bridging the finance gap between buying and selling, with the added advantage that after the bridging period ends the borrower continues on with one of our great value home loans.”

By providing the necessary funds to buy a new home without waiting for the sale of the existing one, a bridging loan allows homeowners to act quickly in competitive real estate markets, avoid temporary accommodation, and potentially securing a higher sale price for their current property by not being pressured to sell quickly.

Additionally, no repayments are required for the first six months of loans.com.au’s bridging loan, easing the financial strain until the existing property is sold.

Key Features of the Bridging Loan:

• Max Loan-to-value Ratio: 80%
• Purpose: Owner occupier
• Max Loan: $3 million
• Rate Type: Fixed for either 6 or 12 months during the bridging period (term chosen by the customer)
• Fixed Rate Loan: No redraw/offset/Visa debit card during bridging period
• Post-Bridging: Loan converts to a standard variable P&I offset loan
• Repayment Type: Interest-only during bridging, P&I post-bridging
• Fees: $230 (or at cost) security assessment fee; Bridging fee 2% of total loan amount (peak debt)

Should they want to, a bridging loan enables homeowners to make any necessary renovations or improvements to their new property before moving in, ensuring it meets their needs and preferences, before moving out and selling their existing home.

With this new product, loans.com.au aims to provide more flexibility and support to homebuyers, making the dream of owning a new home more accessible.

About loans.com.au

Launched by Marie Mortimer in 2011, loans.com.au was one of Australia’s first lenders allowing people to get a home loan online. Today, loans.com.au is one of the largest and most trusted online lenders in the country, with a loan book of more than $6 billion.