Finance - Bridging finance

Congratulations are in order: you’ve successfully bought the house of your dreams and need to settle in 30 days. Your only concern is that you’ve not sold your own home yet, and the likelihood of achieving settlement within 30 days is low. What to do now?

Bridging finance might be the solution you’re looking for. A short term loan whose purpose is to ‘bridge’ the gap in finance between property sales and settlements, bridging finance aids vendors and buyers transition from one asset to the next. There are various scenarios that bridging finance may be useful in: perhaps you require finance to meet the short gap of days or weeks between receiving monies from the sale of your home and settling your new property. Maybe you require funds for a slightly longer period that you intend to repay in full upon the sale of your own home (for example, because you are constructing a home which is due to settle in six months or a year). To facilitate this, a bridging loan might be used.

To learn more about the suitability of bridging finance for your personal circumstances when buying or selling property, we recommend making contact with a trusted financial advisor or broker.