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I want some bridging finance for a residential home purchase. I need to borrow $2 million on 6/6/2015 to settle a purchase and bridge for 22 days when the sale of my property settles for $3,080,000. Need an interest rate and what security the lender need?
Responses
Hi Andrew,
The paperwork required will depend on the end debt eg. Any amount still owing after your existing property settles. If you will have no debt there is less to be proven than if you will maintain a mortgage. In that case you will need to show serviceability (your ability to repay) of the end loan.
In either case you must identify yourself, complete your statement of financial position and prepare a valuation of both properties.
I hope that helps?
Cheers
Scott
Hi Andrew.
There is a facility called a 'no end debt' bridging loan. Sounds like the perfect loan product for you.
Let me know if you wish to pursue.
Rose
Agree there are no end debt loans that should apply. If the high borrowing amount is not for main stream lenders there are alternatives in caveat and capital lenders. Happy to help
Thanks Scott
End debt will be zero as no existing mortgage on sold property. Will prepay bridging interest in advance.
Hi Andrew,
Westpac will allow a bridging loan with no end debt for up to 12 months where the interest is capitalised against the existing property settlement. Their interest rate is competitive with most investment rates currently at around 4.29%.
Hi Andrew,
How did you go? Is this all sorted for you?
Good luck with your next project
Cheers
Scott