Padstow We are often asked “What is Bridging Finance”?
It is a method used to gain additional finance while you wait for a reasonable expected flow of cash.
There are 2 common types of Bridging Finance – Open and Closed.
Open Bridging Finance: you have found your dream home, but have not yet sold your existing home, so how can you purchase the dream home without the proceeds from the existing property? This is higher risk as you have no specific date for when you can repay the money.
Closed Bridging Finance: For most people it is far more advisable to sell your existing property before you commit to a new one, however you may be in a position where the settlements of both the sale of the existing property and a new property do not match up. This is considered a lower risk for a lender as you have a specific set date for when the money can be repaid.
For more finance information contact Luke Torossian of Aussie Home loans on 0401646964 or visit http://www.aussie.com.au/Luke.Torossian
