Bridging Finance Loans and Relocation Loans are both loans for short periods of time that allow people to fund an action for which they do not have the cash available otherwise. For these short term loans the banks will consider the final amount that will remain outstanding when calculating the serviceability of the loan, which means you can access larger loan amounts that would not otherwise be possible for you as longer term loans.
These loans can be confusing at the best of times, and if you think you may need fast access to a short term loan then please call us to discuss your circumstances immediately.
Business Bridging Finance Loans
Bridging finance is used also for short term busines finance. Businesses that have an opportunity to buy stock, equipment, materials or property at a good price but do not have the cash flow needed to fund the puchase immediately will look to Bridging Finance to allow them to take advantage of the opportunity.
These Business Bridging Loans are usually between 1 month and 6 months in duration, and can be arranged in a few days or less. Interest rates are calculated monthly and rates are commonly between 1.5% and 6%. Some bridging loans are calculated annually.
This type of finance may also be used for paying bills, buying shares or investment properties. A Bridging Finance Loan is usually secured against existing equity in your real estate.
When you have purchased a new property, but have not yet sold your existing property, you may require a short term Relocation Loan.
Relocation Loans are a lot more user-friendly compared to the traditional Bridging Loans discussed above. Relocation Loans will in general attract interest at the standard variable rates.
The Bridging Finance will take into consideration the full purchase price of your new property, as well as all of the costs such as stamp duty, bank fees, conveyancing costs etc. Frequently the bank will allow you to capitalise the interest payments as well. Where there are existing loans secured against your current property, these will be replaced by the bridging loan.
The relocation loan is generally for up to 6 months in duration, but can extend over a 12 month period when constructing a new home. The interest rates will incraese if the loan goes past the agreed contracted period.
We at All About Financial Services can help you source Bridging Finance or a Relocation Loan very quickly, to allow you to take immediate advantage of opportunities that are too good to be missed.