Non-bank Bridgit launched a new loan product that allows next-time buyers secure a property first before selling their existing one.
Bridgit designed the Single Security Bridging Loan to provide borrowers with the flexibility as they purchase their next property.
How Single Security Bridging Loan works
Single Security Bridging Loan allows borrowers to purchase alternate properties before selling the existing property, such as retirement homes, community homes, or vacant land.
In a nutshell, borrowers can enjoy the benefits of buying now and selling later while only securing the loan against the equity in the single property being sold.
The loan also helps with a contribution towards the property purchase in the form of a deposit.
Features of the Single Security Bridging Loan
The Single Security Bridging Loan boasts similar features as those with Bridgit's standard bridging loan. These features include:
- Approval in 24 hours
- No monthly repayments
- Three months interest-free
- Loan amounts ranging from $300K to $4M.
It is important to take note that existing mortgages are refinanced into the Bridgit loan, avoiding the need for double mortgages.
Benefits of getting the Single Security Bridging Loan
Bridgit CEO Aaron Bassin said the Single Security Bridging Loan’s main selling point is the flexibility and opportunities it could give to potential next-time purchasers.
“Our goal at Bridgit is to provide more Australians with the option to buy before they sell, and we understand that traditional bridging loans may not be suitable for all borrowers, that's why we've designed this loan to meet the unique needs of our customer base,” he said.
A previous study by Bridgit showed that more than half of homeowners who had sold their existing property had to spend significantly on temporary living before being able to move into their new home. Mr Bassin said the new offering can help solve this problem.
Bridgit head of distribution Stephen Doyle said the lender is providing workshopping calls with their partners to help them get a better understanding of how the Single Security Bridging Loan can help address specific needs of their clients.
"Our workshopping calls are a unique opportunity for our partners to get a better understanding of how our Bridging Loan can work for their clients quickly — Our goal is to make the loan process simple and stress-free for our partners and customers, our workshopping calls is a new way we can do that,” he said.
Related Article: What is a Bridging Loan and How Does It Work?
Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Additional Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6.04% p.a. | 6.08% p.a. | $3,011 | Principal & Interest | Variable | $0 | $530 | 90% | 4.6 STAR CUSTOMER RATINGS |
| Promoted | Disclosure | |||||||||
5.99% p.a. | 5.90% p.a. | $2,995 | Principal & Interest | Variable | $0 | $0 | 80% |
| Disclosure | |||||||||||
6.14% p.a. | 6.16% p.a. | $3,043 | Principal & Interest | Variable | $0 | $350 | 60% |
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Collections: Mortgage News Buying a home
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