A bridging loan acts as a ‘bridge’ between buying a new property and selling your old property. It’s temporary financing to cover the period of time until you sell your home, during this time you’ll need two mortgages. Bridging loans are typically interest only, and floating, with a premium such as 1% or 2% p.a. above the standard floating rate.
What is the process for bridging finance?
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A closed bridge is when you have a definite end point. For example: you’ve gone unconditional on the sale of your home, and the settlement date is 4 months in the future. You’ve also gone unconditional to buy your new home and the settlement date is 1 month in the future. You have a defined end point for your bridging finance (4 months away).
An open bridge is when you have an open ended end point, i.e. you’ve purchased a new home, but haven’t gone unconditional on the sale of your old home. Open bridge loans have both higher requirements to qualify, and higher interest rates.
Firstly is the feasibility assessment, this is non-refundable and is $200.
The process will be as follows:
In some circumstances these can be waived or reduced, it is dependent on your requirements and current lender appetite and suitability. We will work hard to provide you with the best value available from the market. We are accredited with all 5 main New Zealand banks in addition to other banks and non-bank lenders.
Order your feasibility assessment using this form