Sydney Property

Bridging Finance and Simultaneous Settlement

May 24, 20233 min read

Sydney's property market is booming, with demand for homes and investment properties at an all-time high. However, buying a property can be a complex process, especially when it comes to financing. That's where bridging finance and simultaneous settlement come in. In this blog post, we'll explain what these terms mean and how they can help you secure your dream property.

What is Bridging Finance?

Bridging finance is a short-term loan that is designed to help you "bridge" the gap between the sale of your existing property and the purchase of a new one. This type of loan is especially useful if you have found your dream home, but your existing property has not yet sold. With bridging finance, you can use the equity in your existing property to finance the purchase of your new one.

How Does Bridging Finance Work?

Bridging finance works by providing you with a loan that covers the cost of your new property, while you wait for the sale of your existing property to go through. This loan is usually interest-only, and you only pay the interest on the loan until you sell your existing property. Once your existing property sells, you can use the proceeds to pay off the bridging finance loan.

What is Simultaneous Settlement?

Simultaneous settlement is a process that allows you to buy a new property and sell your existing one on the same day. This is ideal if you want to avoid the costs of bridging finance, or if you need the equity from the sale of your existing property to finance the purchase of your new one.

How Does Simultaneous Settlement Work?

Simultaneous settlement works by coordinating the settlement of both the sale of your existing property and the purchase of your new one on the same day. This requires careful planning and coordination between all parties involved, including your solicitor, real estate agent, and mortgage broker.

Why Choose Bridging Finance and Simultaneous Settlement?

Bridging finance and simultaneous settlement are both excellent options for professionals with a gross income of $120,000 plus, first home buyers, investors, small and medium enterprises (SME), and self-managed super funds (SMSF). These options can help you secure your dream property, without having to wait for the sale of your existing property. This can be especially useful if you're buying in a competitive market, where properties are selling quickly.

Bridging finance and simultaneous settlement are both excellent options for anyone looking to buy a property in Sydney's property market. At CCS Lending, we can help you explore these options and find the right financing solution for your needs. Contact us today to find out more about how we can help you secure your dream property.

General Advice Warning

The information on this site is of a general nature.

It does not take into account your objectives, financial situation or needs.

Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant financial product having regard to your objectives, financial situation and needs.

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