Browse Forums Building A New House Re: info on bridging loans??? 2Mar 07, 2010 4:53 pm Don't go near them, can end up costing you a lot off money, esp if your home does not sell as quickly as you hope for, which may result in you selling your current home for a lot less than you want. You wil have to work out if you can afford to pay both loans. Cheers Lou http://take2-customdesigndownslope.blogspot.com 07-10-09 omg they have cut the block 14-05-10 we finally have the keys Re: info on bridging loans??? 3Mar 07, 2010 8:23 pm We took a bridging loan to build our new house. We only had a small mortgage on our existing house so it meant that we could continue to live there whilst building. We sold our house in 1 week and had 90 day contract which timed in perfectly with when the new house was finished. It suited us because we had young kids (incl a baby) and had one straight move instead of selling and renting. It's not for everyone, but it definitely worked for us. Blog: http://bluemistkids.blogspot.com "Never be afraid to try something new. Remember, amateurs built the ark, and professionals built the Titanic." Re: info on bridging loans??? 5Mar 08, 2010 8:55 am We had bridging finance while selling our house, it was great. It gave us 12 months to sell at the standard variable interest rate. No drama at all, just make sure you read everything and are aware of penalties & fees. You also need to make an absolute commitment to sell at any cost - if the market drops unexpectedly and your house hasn't sold in 9 months you can't just pull it from the market, you have to sell to payout your loan. Ours was through the CBA. Re: info on bridging loans??? 6Mar 08, 2010 12:19 pm a bridging loan looks pretty good to us aswell (2 young kids and I work from home, so i don't want to move twice) - but the risk is the build going longer than planned and then the house not selling as quick as we wanted. i was told that while on the bridging loan, you still pay the interest on your current mortgage + the new mortgage payment, each month. the interest is the kicker - because you're not paying anything on your current mortgage, the interest goes up each month. so each progressive month, you're paying more because you're not paying down that mortgage. it'd cost us about $10-15K in the end we think, so it's cheaper for us to rent for a year than to lose money on a bridging loan. let's hope i wrote that down properly, lol. it's good for those with a current mortgage that isn't much - but for us it's just too costly. ♥ hoping to build in 2011! |