Bridging loan

Discussion in 'Loans & Mortgage Brokers' started by lixas4, 14th Sep, 2019 at 6:39 AM.

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  1. lixas4

    lixas4 Well-Known Member

    Joined:
    24th Jan, 2016
    Posts:
    313
    Location:
    Melbourne
    When older retired people buy a new property, before selling their existing property, is it easy to get a loan for the period between purchasing the new property and selling their old?

    My mother in law may require a loan, her situation is as follows:
    - buying a block of land to build a new ppor, vacant land price $700k
    - current ppor carnegie (melb), no mortgage est 1.2 -1.5m
    - retired, no payg
    - fairly good super (not sure exact amount but prob 2.5m+)

    She will be selling her ppor, but not sure when, may or may not be before settlement on the vacant land. She would like to make an offer on the land, its a private sale, and wondering if she does need finance, would it be difficult for her to get as she is retired? Or would a bridging loan be fairly easy for her?

    She will be talking with a broker, its just this property and its purchase has all happened very quickly so hasn't had a chance to yet.

    Would a subject to finance clause be required in her situation? Don't want to ask for one if don't have too.
    Thanks
     
  2. balwoges

    balwoges Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    607
    Location:
    Lake Macquarie
    I couldn't when I bought a house for cash, before my then home, mortgage free, was sold 4 years ago.
    Westpac at the time was advertising loans for oldies, I rang them and had a heated argument with the bank about these loans, turns out you had to be employed - shortly after that the ads stopped.
     
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  3. Richard Taylor

    Richard Taylor Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    344
    Location:
    Brisbane
    Nodoc loan under the 62 day rule of NCCP.

    Interest would need to be capitalised and fees limited to 5% of the Gross loan.

    Fairly straight forward deal, approved 2 this week for clients in similar circumstances.
     
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