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Bridging Finance available anymore?

Discussion in 'Property Finance' started by Beachy, 24th Jun, 2015.

  1. Beachy

    Beachy Active Member

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    Location:
    QLD
    I rang a local finance broker today for clarification on this and they said bridging finance is not really available anymore, as most lenders don't want to do it, which surprised me, as it used to be available before.

    Thoughts?
     
  2. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Location:
    Perth WA
    It's still available, there are a few lenders who will do it.
     
  3. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    What do you aiming to do?

    Cheers

    Jamie
     
  4. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    It's certainly available, but it's always been limited. At a guess I'd say about 50% of lenders are okay with it if it stacks up. The general criteria are that you must show serviceability for the end debt and the peak debt can't exceed 80% of the total security value.

    That said, bridging finance is rarely the best solution, I think I've done only a single BF deal in 11 years. I have easily done dozens of deals where people were buying and selling simultaneously. I've got 3 deals running right now where that's the case. It's just a matter of understanding the best and worst case scenarios, address that and then structuring everything appropriately.
     
  5. Beachy

    Beachy Active Member

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    Location:
    QLD
    OK Thanks.