What is a bridging loan?
A bridging loan is a short term financing solution, which will allow you to purchase your new property before you sell your current property.
Bridging loan terms vary and are usually set up between six months and three years, depending on the lender and your needs. They usually take two or three weeks from application to approval, so are not always the best solution, if you need access to finance quickly or only need funding for a short period of time.
How much could I borrow with a settlement advance loan?
The amount you could borrow will depend on both your needs and the equity value of your property.
Our settlement advances can be funded up to 80% of the property value1 with a maximum limit of $5,000,000.
For larger advance amounts, over $500,000, we offer VIP rates*.
What kind of documentation do you need to approve my application?
The documents we require, will depend on your current property status and individual circumstances.
Be providing the documents we need as soon as possible, we will be able to evaluate your application quicker. All documents should be emailed through to us at firstname.lastname@example.org while quoting your name and property address.
- Contract of Sale - (if applicable) for the property you are selling or advancing against
- Mortgage Statement - PDF document issued by your mortgage provider
- Solicitor or Conveyancer - (if already arranged) their name, company and contact details
- Identity Verification - A clear, colour photo of the front and back of your Driver's Licence
How can I buy a new home before I sell my current home?
Buying a new home before selling an existing home is quite common and is usually facilitated through a bridging loan or settlement advance.
If your property is already under offer, then a pre-settlement advance loan may be a suitable option to consider, as they can be funded quickly, usually between 24 and 48 hours, plus the loan term is short and can be aligned with the property settlement date.
If you have not started selling your property yet, but have already found a property you'd like to purchase, then a bridging loan may be a good option to consider. However approval turnaround times may be too slow in some cases.
How can I buy and sell a house at the same time?
It is possible to buy a new property and sell your current property at the same time through a settlement advance loan.
The way settlement advances work, is that, the loan is secured against the property value1 and the agreement is set up, that the advance will be repaid in full, on the property settlement date. The property which is being sold, must be under an unconditional offer, in order to take out a settlement advance with us. The settlement date should be within 61 days from the advance start date.
The settlement advance can be paid quickly, usually within 24 to 48 hours of application, allowing the vendor time to purchase a new property or put down a deposit on a new property.
When would I have to repay my loan with Settlement Advances?
Your settlement advance repayment date would be aligned with the settlement date of the property you are currently selling.
Are settlement advances a type of bridging loan?
Settlement advances work in a similar way to bridging loans, but are different in a few aspects:
- The vendor's property must be under unconditional offer for a settlement advance to be approved
- Settlement advances have a short loan term, usually under 60 days. If a longer term is needed, please contact us to discuss
- Settlement advances can be approved very quickly, usually within 24 to 48 hours of application
Learn more about Pre-Settlement Advances.