Whilst you gained a lot of experience and no doubt learned a few lessons when buying your first home, things are a little different when you’re selling your existing home and moving to a newly purchased home.
Things To Consider:
Before putting up the for sale sign and looking for a new home to buy, there are a few things to take into consideration:
- Cost of the agent for the sale of your existing home
- Cost of the home you are going to purchase
- Time frame you expect your house to sell in
What Loan Options Are Available?
The type of loan you choose will depend on whether you plan to buy your existing home and purchase a new home at the same time or, if you need some time between buying and selling.
Portable Loan – For Buying and Selling Simultaneously
If you plan on selling your existing home and purchasing your new home at the same time then a portable may be a good option for you.
A portable loan is basically when you transfer your existing loan to a new property, which is good news if you’re happy with your loan. A portable loan requires you to have simultaneous settlement which in a nutshell means the sale of your existing home and the purchase of your new home must be settled at the same time.
Why must settlement of both deals occur at exactly the same time?
The loan must always be secured by a property. When you are transferring a loan to another property, both contracts must be signed at the same time to ensure there isn’t any period of time where the loan is not secured.
To ensure settlement of both properties occurs simultaneously it’s best to discuss your expectations with your agent prior so that they can assist in the process.
Bridging Loan – To Give You Some Breathing Space
If you are not looking to buy and sell at the same time and you’d prefer a little breathing space to sell your existing home then a Bridging Loan may be a good option for you.
What is a Bridging Loan?
A Bridging Loan gives you access to funds to purchase your new home on top of your existing home loan. This facility is usually restricted to a 6 month period, during this period your existing home is required to be sold.
Ready To Fast Track Your Home Loan?
If you’re ready to apply for an obligation free online pre-approval then simply complete the 3 step online application form, select a time that suits you and we’ll call you with details of your pre-approval. It’s that simple.