Bridging loan- am I elegible?

Discussion in 'The Buying & Selling Process' started by Littlegermangirl, 17th Dec, 2018.

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  1. Littlegermangirl

    Littlegermangirl Member

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    17th Dec, 2018
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    Location:
    Melbourne
    Hi Everyone. I need some urgent advice please.
    We are interested in purchasing a new home (upsizing) but we havent sold our existing home yet.
    Can anyone tell me if I give some figures the likelyhood of us getting a briding loan is? alternative option is to see if they will accept an offer subject to sale of our existing home (never heard of this but have been told it can be done- although doesnt sound very attractive to the sellers?).

    Scenario:

    Existing home:
    Value $750k
    Equity: $385k

    New home:
    Total purchase price $950k

    Combined income: $160k gross (can get up to $200k but would like to use minimum income)

    How are briding loans calculated? Anyone done this with good experiences? What bank did you go through?

    Thaks so much!
     
    Littlegermangirl, 17th Dec, 2018
    #1
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    depends on the circumstances
    you probably have enough equity.
    serviceability with some banks is assessed on the end debt only
     
    Terry_w, 17th Dec, 2018
    #2
  3. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    There's a lot of variables here.

    My best guess is that your equity position is right on the line but possibly do-able. This component is going to come down to valuations.

    Affordability might be okay, this is going to depend on the big picture.

    Bridging loans are quirky at best. There's no simple answer here without a lot more info.
     
    Peter_Tersteeg, 17th Dec, 2018
    #3
  4. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    Without knowing a heap more info it's impossible to tell - your best bet is to speak to a broker with all your info to hand so you can get an accurate assessment, especially if time is of the essence.
     
    Jess Peletier, 17th Dec, 2018
    #4
  5. Phantom

    Phantom Well-Known Member

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    Hi @Littlegermangirl. Welcome to our forum. It may be possible depending on the specific numbers & your specific circumstances. Unfortunately, the info you have supplied is not enough to give a more accurate reply.

    If you'd like to learn more about bridging loans and how they work please see our blog post that was written recently that discusses how bridging loans can help you in certain situations and how the numbers work.

    What are Bridging Loans & How Can They Help Me?
     
    Phantom, 17th Dec, 2018
    #5
  6. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Sounds very doable.

    The biggest risk in the current market climate is not being able to sell in the required time frame and being in default.

    Bridge loans can be great or can killnyour financials

    Gute beratung is recommended from a broker unless you prefer to run the various options with lenders directly which can be ok if u are handy and have the time and stomach.

    Ta

    Rolf
     
    Rolf Latham, 17th Dec, 2018
    #6
  7. Brady

    Brady Well-Known Member

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    Adelaide, SA
    Who's your existing loan with?
     
    Brady, 18th Dec, 2018
    #7