Bridging finance

Bridging finance is a loan that literally builds a bridge between your existing mortgage and a new mortgage over a new property. Having a bridging loan means having two home loans for a short interim period between owning two homes.

Key points about bridging loans

• Must be with current lender to leverage the equity in your existing mortgage.
• Required equity is generally 20-40% of your own equity (including buying costs).
• Not all lenders offer bridging finance.

The Get Real Finance team will guide you to evaluate your approach to best empower and support you.

Our regular check-ins with you about what's in your plans, means we can assess if your current lender and current finance commitments (debt) will be best positioned to support your potential plans. We can switch up your arrangements to remove any barriers that might be a pain (or just life admin you don’t need) so you can make the move when inspiration and opportunity strikes.

Security substitutions

A security substitution or security swap (also known as loan portability) is keeping your existing home loan and substituting/swapping the security attached i.e. the real property. A range of benefits might fit your circumstances—particularly if you have a fixed loan with a low interest rate. Generally, there’s less stress attached to the finance position including the impact on your cash flow when compared to a bridging loan that requires interest-only payments while selling your existing home.

Key considerations about using security substitutions/swaps

Key points about lending:

• Not all lenders/products offer security substitutions/swaps/portability.
• Property settlements must be synchronised (i.e. no lapse in sale proceeds).
• Name on home loan/property title must be the same.

The Get Real Finance team will guide you to evaluate your approach to best support you.