Bridging/Settlement Finance

R

Renoir

Hi

I have my property under contract for $550K the contract is unconditional and not subject to finance or anything BUT I did agree to a long settlement (110 days).

I have an $81K mortgage owing on that property.

I have found a house that I really, really want to buy for $398K but the vendor will not accept a contract subject to sale of my property as the length of time is too long. They want a 30 day settlement.

Unfortunately my bank (MeBank) does not offer bridging finance.

Can anyone suggest a way to get bridging/settlement finance so I can buy this new property.
 
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Renoir said:
Hi

I have my property under contract for $550K the contract is unconditional and not subject to finance or anything BUT I did agree to a long settlement (110 days).

I have an $81K mortgage owing on that property.

I have found a house that I really, really want to buy for $398K but the vendor will not accept a contract subject to sale of my property as the length of time is too long. They want a 30 day settlement.

Unfortunately my bank (MeBank) does not offer bridging finance.

Can anyone suggest a way to get bridging/settlement finance so I can buy this new property.
Click to expand...

id get a broker ASAP
 
Renoir said:
Hi

I have my property under contract for $550K the contract is unconditional and not subject to finance or anything BUT I did agree to a long settlement (110 days).

I have an $81K mortgage owing on that property.

I have found a house that I really, really want to buy for $398K but the vendor will not accept a contract subject to sale of my property as the length of time is too long. They want a 30 day settlement.

Unfortunately my bank (MeBank) does not offer bridging finance.

Can anyone suggest a way to get bridging/settlement finance so I can buy this new property.
Click to expand...

get your bank to do a s27 to get your deposit released would be a start.
find a broker to sort out your bridging finance etc.
 
A couple of things to thing of:

$25k isn't enough to cover a deposit on the new property. Do you have redraw or other funds available. You could likely purchase the new property using these funds as a deposit.

The second option would simply be to cross-collateralise the purchase of your existing property with the new purchase. You simply re-adjust the loans when the sale of your existing house is completed.

If the second option has already been considered by ME Bank and rejected, there's probably a lot more to it than your post suggests. You'd definitely need a good broker in that case.
 
PT_Bear said:
A couple of things to thing of:
If the second option has already been considered by ME Bank and rejected, there's probably a lot more to it than your post suggests. You'd definitely need a good broker in that case.
Click to expand...

ME Bank didn't reject it, I have been with them for 13 years and never missed a weekly payment (oh once I did 10 yrs when I had an accident and was in hospital for a week but it was caught up the very next week).

I looked at their website and they don't seem to offer bridging finance. I rang the call centre today and they said no they don't do bridging finance but one of their brokers might be able to work something else out for me and they took my details and said one of their brokers would get back to me next week.

So they might possibly be able to offer some sort of solution, they haven't rejected me, I haven't even spoken to one of their brokers as yet so see what they can do.
 
Renoir said:
ME Bank didn't reject it, I have been with them for 13 years and never missed a weekly payment (oh once I did 10 yrs when I had an accident and was in hospital for a week but it was caught up the very next week).

...

So they might possibly be able to offer some sort of solution, they haven't rejected me, I haven't even spoken to one of their brokers as yet so see what they can do.
Click to expand...

In that case the solution is simple. ME Bank can simply use your existing house as security until it's sold. I'm not normally a fan of cross-collateralisation but in this case it makes sense and keeps it simple.
 
30 Settlement would still be tight in Qld in the current market especially if you needed 2 valuations.

Did a bridging loan very similar for a forum client in Northgate only a couple of weeks ago and they went 45 days to be on the safe side.
 
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In all of the scenarios we hope that the servicing is ok for the new purchase, most lenders should see that you can exit your existing property, but some may play silly,so its important to broach that q before you apply

Some lenders that looks at end "debt" even in a bridging scenario

ta
rolf
 
Rolf Latham said:
Some lenders that looks at end "debt" even in a bridging scenario
Click to expand...

With a confirmed sale coming through, I doubt most lenders would be too stressed about this. It'll mostly be a question of demonstrating affordability in the short term (even if it's by savings), then showing onging affordability of the loan after the first property is sold.

Assuming the OP has a reasonable income, I'd say this looks fairly simple.
 
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