Bridge Loan: How to Buy a Home Before Selling Yours
Bridge Loan: How to Buy a Home Before Selling Yours
Buy Before You Sell
Buy Before You Sell
A bridge loan makes your next move financially possible today.
A bridge loan makes your next move financially possible today.
Short-term loan covering the gap between buying and selling property.
Short-term loan covering the gap between buying and selling property.
What Is a Bridge Loan?
What Is a Bridge Loan?
The existing home acts as collateral until your old property sells.
The existing home acts as collateral until your old property sells.
How Does It Work?
How Does It Work?
Homeowners purchasing a new property before completing the sale of their existing one.
Homeowners purchasing a new property before completing the sale of their existing one.
Who Should Consider It?
Who Should Consider It?
Typically based on current property value minus outstanding home loan.
Typically based on current property value minus outstanding home loan.
What Is the Loan Amount?
What Is the Loan Amount?
Bridge loans carry higher rates due to their short-term nature.
Bridge loans carry higher rates due to their short-term nature.
Know the Interest Rates
Know the Interest Rates
Repayment begins once your existing property is successfully sold off.
Repayment begins once your existing property is successfully sold off.
Understand the Repayment Terms
Understand the Repayment Terms
Fees are higher than standard loans and always calculate total cost.
Fees are higher than standard loans and always calculate total cost.
Watch the Processing Fee
Watch the Processing Fee
If property does not sell fast, repayment pressure builds quickly.
If property does not sell fast, repayment pressure builds quickly.
The Real Risk Here
The Real Risk Here
A strong property market plus a quick sale timeline makes bridge loans worthwhile.
A strong property market plus a quick sale timeline makes bridge loans worthwhile.
Is It Right for You?
Is It Right for You?
Disclaimer The information provided on this website is for general informational purposes only and should not be considered financial or legal advice. Please consult with a qualified financial advisor before making any decisions.