Bridging Finance Newcastle
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, Maitland, Singleton, and the Hunter Region.
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Bridging Loans
How do bridging loans work?
A bridging loan covers the purchase price of a new property and gives you time to sell your existing property, even if you have a mortgage.
Essentially, this type of loan “bridges” the gap between buying and selling, which can be advantageous if you’ve found your dream home and haven’t successfully sold your home yet.
A bridging loan can also provide the finances you need to build a new home while you continue living where you are.
This is an interest-only short-term loan — once your loan has been approved, you normally have a bridging period of around six months to sell your existing property or 12 months if a new house is under construction.
During this time, the minimum repayments will be calculated on an interest-only basis and can be capitalised until the existing home is paid.
Your lender will typically take over the mortgage on your existing property and finance the purchase of a new one. The total amount borrowed is called “peak debt” and includes the balance of your existing mortgage, the contract purchase price of your new home, and any purchase costs like stamp duty, legal, and lender fees.
Once you sell your existing home, the sale proceeds (minus costs like real estate fees) are used to reduce the “peak debt”.
The remaining debt becomes the “end debt”, which is paid as a standard mortgage from then on.
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 that 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 exchange contracts on a property”.
This guarantees the seller that the buyer will pay the full cash deposit on an agreed date. The deposit bond amount 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.
How We Help
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. We can also connect you with local financial planners, lawyers and bankers to make the process feel more secure.
Your personal mortgage broker will make the loan application process feel simple and stress-free. Our team will do all the legwork for you, from finding and comparing bridging loans and interest rates to monitoring market conditions, 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 bridging loan. 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.
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Whether you're looking for a mortgage for your dream home or investment property, refinancing for a better deal, funds for a car, caravan, boat or the holiday of a lifetime, or even equipment finance to enhance your business, Watson Mortgages is here to help. Our tailored guidance will clarify your loan options and streamlines the entire process, making it easier for you to achieve your dreams and aspirations.
Ready to take the first step towards securing the right mortgage, personal loan, or equipment finance? Contact us now, and allow us to guide you with confidence, clarity, and personalised solutions.
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Contact Watson Mortgages for an obligation-free consultation
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.