Property bridging finance Durban North
Wanting to buy a new home but haven’t found a buyer for your existing Durban North home. You should be looking at property bridging finance. You can fund the purchase of your new property before your existing property has been sold, which means you don’t miss out on buying the home of your dreams just because you have to wait until you’ve sold your existing home.
Bridging finance is becoming the go to source of finance for those looking to raise money for a home purchase with a tight deadline, we at Bayside Finance Solutions can provide the solution you are looking for.
What is property bridging finance?
Bridging finance is a type of short term loan that gives property owners, developers and investors access to money quickly that will cover both an existing home and the new home you’re looking to buy.
At Bayside Finance Solutions, we would be happy to visit you in Durban North and chat about loaning you what you need, even if your credit score is less than perfect. This is because your property is being used as collateral and leveraging its value in order to bridge a short period of time and borrow short term finance.
You can access bridging finance in around two to four weeks, compared to a mortgage from a South African bank which could take several months. Bayside Finance Solutions will advance up to 80% on the sale of immovable property and 70% in the case of raising a further bond.
While we have decades of experience working with every bridging product in the market, we are one of the few providers who specialise in helping clients who cannot find a solution using a big bank or an ordinary bridging provider. We combine expert advice with unique specialised products to serve every type of customer possible.
The home you are living in at the moment might take a lot longer than expected to sell, and to help reduce your total loan amount, it is often a good idea to continue making repayments so you’re not left with a large lump sum to pay back. With property bridging finance it’s worth getting advice from a specialist who knows their business when it comes to mortgage to ensure you understand all of our loan requirements.
How does property bridging finance, Durban North work?
Bridging finance is usually secured against a property.
A bridging loan is calculated by adding any debt owing on your existing Durban home to the value of your new home, and then subtracting the potential sales price of your existing home.
The amount leftover is called the principal and in most cases during the bridging period you’re only required to pay back the interest calculated on the principal. Interest will be compounded monthly though at the standard variable rate and added to your principal or ongoing balance. This amount will become your mortgage on your new property once your existing home has sold.
Bear in mind that during the bridging period, you’re essentially paying off the interest on two properties, so selling your existing home is a priority
What are the benefits of bridging finance for your Durban North home?
Bridging finance from Bayside Finance Solutions takes away the pressure of having to match up settlement dates, allowing you sell your property without worrying about losing it entirely. It is the best way of buying the home you want without delay, letting you secure a new home without having to spend weeks worrying about selling your existing property first. It is also an ideal option for finance if you’re considering building a new home in Durban North, while you live in your current home.
A mortgage can take weeks, and getting a definite buyer for your current property may take time. This is one of the most common reasons why Bayside Finance Solutions has so many clients wanting advice and a bridging solution, as it helps to ‘bridge’ the gap between selling and completion, enabling you to obtain your dream house.
What to consider?
Get good advice about property bridging finance before making any decisions. There are a few factors to consider when deciding on whether or not bridging finance is the right option for your particular situation in Durban North:
- What period of time do you need the funds for?
- What is the average time properties are taking to sell in your area?
- How soon can you get your existing home ready for sale?
- Are you building a new house or buying an existing home?
- Will you be able to meet the repayments on your current loan and your property bridging loan?