BLOG
Bridging Finance and Simultaneous Settlement
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.
What is the First Home Loan Deposit Scheme?
The First Home Loan Deposit Scheme (FHLDS) is an Australian Government initiative to help you buy or build your first home sooner. We're proud to continue supporting this initiative.
If you’re eligible you’ll get a limited guarantee from the Australian Government to buy or build your first home with a low deposit of 5%, without paying Lenders Mortgage...
What costs are involved with buying a home?
Ask yourself one simple question, ‘How quickly do I want to get into my first home?’ This will not only determine how much you need to save but also how long it will take you.
The First Home Owners Grant (FHOG), opens in new window is a national scheme funded by the states and territories. It was established to offset the effect of GST on...
Lenders Mortgage Insurance
How Lenders Mortgage Insurance can help you get into your dream home faster.
If you’re finding it difficult to save a 20% home loan deposit, you might still be able to borrow by paying Lenders Mortgage Insurance. We’ll run through how LMI works and what it might mean for you.
The Lender will normally require LMI if you do not have the required home loan deposit (typically 20% of the property value) and the cost is usually passed...
Buying a House: The Upfront Costs
Outside the deposit, this’ll be your biggest upfront cost. Stamp duty varies greatly from state to territory to state and the rules (and exemptions) can seem complicated.
Check out the government websites of your state or territory. But be warned: the various schemes change almost yearly so you’ll need to check and double check.
As of October 2014, if you’re a...
Current Cashback Offer
Terms and conditions, credit criteria, fees and charges apply.
$2k to $4k Refinance Cashback available for new refinance applications. Offer may be varied or withdrawn at any time.
Limit of one cashback payment regardless of the number of applications, applicants, properties, or loans involved per 12-month period. For joint applications, only one cashback payment will be...
85% LVR with LMI waiver or $1 for First Home Buyer Offer
This offer is only available through St George and 86 400 Bank.
For eligible first home buyers with a Loan to Value Ratio (LVR7) up to 85%, the LMI will be reduced to only $1 with St George or NIL with 86 400.
This offer is not an LMI waiver and your clients will be charged $1.00 for LMI which will be reflected in their Loan Offer...
Australian Credit Licence Number 458791
ABN: 17 166 219 521