“It was our foremost priority to ensure that we could comfortably manage the repayments on our new Forever Home and our current property while it was still on the market. We needed the expert assistance of Martin and his team to secure the right loan and make our dream a reality.”
Introduction
When it comes to finding your Forever Home, timing can be everything. Typically, buyers endeavour to sell their old home before purchasing a new property with the available equity. You never know when your Forever Home might find you! Bridging finance can be a successful solution if you’ve found your Forever Home but haven’t sold your current property yet, a process that can be complex without guidance from a professional.
What is bridging finance?
Bridging loans help buyers bridge the gap between receiving funds from selling their existing property and purchasing a new home. Bridging finance involves a short-term loan you can repay once you have sold your property.
With most bridging loans you only make repayments on the ‘end debt’. Interest on the bridging loan accrues and is ‘netted off’ from the sale proceeds.
The fact that you haven’t sold your current property brings risk to lenders, who mitigate that risk by building tolerances into their calculations, pushing some of these risks back onto the borrower.
This process can create challenges around equity and borrowing capacity.
“Understanding these risks is crucial before entering into a bridging scenario”, says our Senior Broker, Martin Ryan.
It is essential to consult with an experienced broker to ensure you meet bridging loan requirements before you lock it in.
Michael’s story
Considering themselves to be “financially conservative”, Michael and his family have always avoided looking at properties out of their price range – until an exceptional listing in Rowville caught their eye. Despite being out of their budget and preferred suburb, they knew this was their Forever Home and the right property for them and their growing number of grandkids! Determined to make it work, Michael and his family began their journey with Aviser Finance, knowing they needed expert support to secure bridging finance and make their dream a reality.
“We had limited savings, as we had been ploughing all our monies into our mortgage,” says Michael. “Our financial position meant our deposit was not as big as we had planned, as we had decided to purchase a much more expensive property.”
After reaching out to Aviser Finance, Martin and the team set out to find a bridging loan to help Michael and his family sell their current property without running the risk of missing out on their dream Forever Home. According to Michael, “it was our foremost priority to ensure that we could comfortably manage the repayments on our new Forever Home and our current property while it was still on the market.
“While we were in love with the new property, we didn’t want to put ourselves in a risky position financially. We needed help with a complicated selling and buying process as we were operating outside our comfort zone.”
“We knew from the beginning that we couldn’t do it alone. We needed the expert assistance of Martin and his team to secure the right loan and make our dream a reality.”
Q&A with Michael and Aviser Finance
Aviser Finance: Congratulations on finding your Forever Home! Can you tell us why you decided on Rowville and what drew you to this property?
Michael: Earlier this year, my wife and I accidentally stumbled across our incredible Forever Home when we were looking to upsize to accommodate our blended family and an ever-increasing number of beautiful grandkids.
A: This isn’t the first home that you’ve purchased. How was this process different?
M: We are relatively conservative with our finances and always stay within our budget when browsing listings. This property appeared as one of those ads below your returned searches: “Hey, this falls outside the geographic area you are searching and is over your budget… but isn’t it gorgeous???”
We typically ignore these ads, but we were drawn in by the primary photo of the property, so we clicked on the ad. We fell in love with it straight away. As the property was outside our budget, we knew we were going to need expert guidance and assistance if we were going to make it work.
A: What was your experience working with Martin and the Aviser Finance team?
M: Martin and his team were incredibly hands-on and up-to-the-minute with what stage of the selling and buying process we were at, which made all the difference. They took the time to understand what we were trying to do and why and then went above and beyond to help us achieve our dream.
A: What advice would you give to someone considering bridging finance?
M: Martin, Tonina, Joyce, and Anne genuinely came to our rescue and guided us step-by-step, taking us from our “there’s no way” to “we can do this!” If you are considering your finance options, please contact Aviser Finance for assistance. You will be glad you did!
While planning ahead is essential, you never know when your dream property might find you! With the support of Aviser Finance, all dreams are possible.
Ready to chat? Contact Aviser Finance today.