Key Information
Informed Decisions,
Smooth Transactions.
Bridging funding terms
Funding Duration
Typically, the funding ranges from a minimum of 30 days to a maximum of 180 days.
Repayment
Repayment of the bridging amount, inclusive of interest, is structured as a lump sum upon successful property registration and transfer.
Interest Rates
Bridging funding rates tend to be higher than traditional mortgages due to the short-term nature and potential risk. Rates can vary depending on factors like funding amount, funding duration, and your creditworthiness.
Look for providers who offer transparent interest rates, often quoted as a monthly rate (e.g., 1.5% per month). This allows for easier comparison with other providers.
Eligibility criteria
Property Ownership
You must be the owner of the property you’re selling (Bonded or unincumbered).
Equity
Funding is available for up to 80% of the sales value, with the remaining 20% as an equity contribution.
Financial Stability
Demonstrating a good credit score and stable income can improve your chances of approval.
Transfer Progress
All suspensive conditions of the sale must be met before the Offer to Purchase (OTP) can be deemed unconditional and the transfer process initiated.
Transparency
Reputable bridging funding providers will provide clear and upfront information on their website and during the application process.
Look for providers who disclose their:
- Interest Rates (including any fees)
- Eligibility Criteria
- Repayment Terms
Don’t hesitate to ask questions and ensure you understand all terms before applying.