fbpx skip to Main Content

Bridging Finance

Get a short term loan and take the financial stress off your shoulders as you prepare to purchase or build a new home. Learn more about our convenient bridging finances in Newcastle.

Watson Mortgages Logo
Bridging Loans

Your number on choice for a bridging loan in Newcastle

Paying more than 3%? Get a better rate

Bridging loans vs deposit bonds

In the finance world, a lot of jargon is thrown around which can be confusing for aspiring homeowners. For example, “bridging loans” and “deposit bonds” are often interchangeable, leaving some homeowners lost in translation. 

The truth is, bridging loans and deposit bonds achieve the same thing, but in different ways. The Australian Securities and Investments Commission defines deposit bonds as a financial agreement that can be used “in place of a deposit when a buyer exchanges contracts on a property”.

This guarantees to the seller that the buyer will pay the full deposit on an agreed date. The deposit bond takes the place of cash when buying a new home, usually covering up to 10% of the purchase price. 

A bridging loan is a short term loan that is used to cover the costs of buying a new property, while waiting on the sale of an existing property. These are generally interest only and the value is calculated according to the equity in the current property. These loans are generally limited to 6 months.

Watson Mortgages: Your number one choice for bridging finance in Newcastle

At Watson Mortgages, we’re committed to finding you a great bridging loan to make homeownership in Newcastle more achievable. 

Bridging loans are one of the ways to “bridge the gap” between your current home and your dream home. We partner with more than 20 lenders to provide local homeowners (or aspiring homeowners) with short term loans, plus we can connect you with local financial planners, lawyers and bankers to make the process feel more secure. 

Our goal is to help take some of the hassle out of the loan application process. We’ll do all the legwork for you, from finding and comparing bridging loans and interest rates to organising paperwork and applying for preapproval. 

Throughout the process, you will be the one to call the shots and make the final decisions, while we provide recommendations and advice to guide you towards the most suitable loan option. Plus, we will always ensure you understand the process and provide regular updates so you can see how your loan application progresses.

For more information about bridging finance in Newcastle, contact Watson Mortgages today.

Bridging Loans
Watson Mortgages
"Watson Mortgages helped us easily buy our new home and sell our old home with a bridging loan."

Contact Watson Mortgages for an obligation-free consultation

Why should I choose Watson Mortgages?

Between Watson Mortgages, Elliot Watson Financial Planning and Watson Wealth, we have many years of experience helping Newcastle residents achieve their homeownership goals. 

As an award-winning team with extensive financial and legal experience, we will find a suitable loan that matches your budget and lifestyle.

Here are just a few benefits of choosing Watson Mortgages for bridging finance in Newcastle:

 

  1. We have more than 20 lenders to choose from, meaning we’ll find a bridging loan to suit your needs.
  2. We’ll manage the application process from start to finish. We’ll help find the right loan, communicate with lenders on your behalf, submit documents and secure a loan, then provide ongoing services and support to make the repayment process clear.
  3. Our services are complimentary and convenient. Our brokers can meet at your location, or we can have a more formal meeting in our office.
  4. We’ll find a competitive interest rate on your bridging loan, so there could be less stress when it comes to your monthly interest payments.
  5. We have the experience and knowledge to provide mortgage and debt consolidation advice, so you will feel supported and on top of things from day one.

 

Contact the team from Watson Mortgages for an obligation-free consultation today.

Bridging Loans
"Completing the paperwork and getting the funds for our new home was made simple by the staff at Watson Mortgages.”

Frequently asked questions

How much do bridging loans/deposit bonds cost?

Different issuers charge different fees for deposit bonds. The total amount depends on the value of the house you’re looking to purchase and the value of the bond being taken out, as well as if you have been pre-approved for bridging finance in Newcastle. According to Canstar, who completed a review of several deposit bond companies, a buyer can expect to pay between 1.2% and 1.5% of the total purchase price.

We recommend comparing different bond issuers with us before committing to a particular deposit bond.

How long does it take to get a deposit bond approved?

Getting a deposit bond is actually quite a quick and streamlined process. According to Deposit Bond Australia, applicants can receive their bond between four and 48 hours, depending on the complexity of the application.

What are the risks associated with bridging loans and deposit bonds?

There are a few hurdles involved with getting a bridging loan or deposit bond. You may not be issued funds due to:

Refusal from the vendor. Not all real estate agents and vendors will accept a deposit bond. Be sure to check this under the contract conditions before committing to a sale.

Financial checks. By law, you must pass financial checks by the issuer. Like home loans, deposit bonds are a form of credit and are covered by the National Consumer Credit Protection Act 2009 (Cth) (NCCP Act).

Fees and charges. Anyone using a deposit bond is required to pay fees and charges on top of the amount covered by the deposit. Before agreeing to enter a contract, find out how much the deposit bond will be so you can calculate additional costs.

What other services do you offer?

At Watson Mortgages, we have close contacts with local financial planners, banks, lawyers and many more essential services, meaning you can access holistic service and be set on the path for success.

As well as Watson Mortgages, we also offer services via: 

No matter where you are in the home building journey, our group can help you achieve your goals in a clear and cost-effective way.

For deposit loans and bridging finance in Newcastle, contact the team from Watson Mortgages today. Our services are complimentary, convenient and flexible, so you can access finances sooner.

Bridging Loans
"We were worried we would miss out on our dream home, but a bridging loan with the help of Watson Mortgages got us there.”

Contact Watson Mortgages for an obligation-free consultation

Back To Top
Search