This will depend on how much equity you have built up in the property you are selling, plus other financial considerations, depending on your circumstances.
Most people are aware of bridging loans, however there are a few other options:
- Pre-Settlement Advances
- Early Deposit Release
- Bridging Loans
- Home Equity Loans
Pre-Settlement Advances
If you think you'll be able to complete the sale of your property, within around 60 days, then this is an option to consider. Pre-settlement advances are meant as a short term funding solution, much like a fast bridging loan, but generally for a shorter period of time. Settlement advances are available, when your property is currently under an unconditional offer, and has an agreed settlement or completion date, which is less than 62 days away.
One huge advantage of settlement advances, is that they can be approved and funded very fast, and with us, within 24 to 48 hours of application. If you've found your dream property and need to put down a deposit or bid at auction, but don't have that kind of cash handy, until the sale completes, Settlement advances are a good option to consider.
Early Deposit Release
Also called a section 27 early deposit release, allows the vendor, or home seller access to the deposit that the buyer has put down on the property, prior to the settlement date. They are only available in Victoria and take some time to be processed or approved. Unlike bridging loans, an early deposit release, is only available when a property is under an unconditional offer and only in Victoria. Depending on your needs, the deposit may or may not provide enough funds for your needs.
Bridging Loans
Bridging loans are used to 'bridge the gap' when wishing to buy a property before you sell your existing property. One advantage of bridging loans, is that it will allow you to buy a new property before you even start the sale process of your current property. They generally run for between 6 and 12 months and sometimes longer, such as 24 months when using the funds to build your dream home. If the funds are needed in a hurry, bridging loans may take a few weeks to be reviewed and approved. This may not be suitable, if you have already found your dream home, and need to put down a deposit or offer urgently.
See our bridging loan alternatives for more options.
Home Equity Loans
Home equity loans, give you access to the equity you have established in your current property. As the loan may not be directly tied to the sale of your current property, you could end up owning the two properties. This could give you more time to prepare your property for sale and secure the best sale price.
See our home equity loans page for more details.