Short term bridging options ...

[bennido]

Hi all,

My first time moving PPOR and I think I made a boo-boo.

I bought a new place which settles on 15/1. Then I sold my current PPOR with settlement on 31/1 - thinking that I would give myself 2 weeks to move leisurely (didn't mind paying double interest for a while) to the new home.

But now my bank (Westpac) has come back saying that because I settle on the new home first, I don't have enough equity and will need to either pay down my existing loan or pay LMI.

Are there any other options available for me ? I've read that 2 weeks is too short for a bridging loan.

Thanks in advance !

 

[JoshyBoi]

Are there any other options available for me ?

Can you get a two week extension on the new purchase?

 

[Propertunity]

Just try and re-align the settlement dates to occur same day. Push one back a week and pull one forward a week.

Worst case scenario, don't settle on the early one. They will issue a 14 day notice to complete. This will cost you in penalty interest + fee for issuing but still cheaper than LMI.

 

[Spectre]

whats the sale price/purchase price and debt levels?

 

[jonmardell]

your cheapest option is to try and change the settlement to the same day. If that fails and you have to look into short term bridging finance you would be looking at anywhere from 3% - 6% interest per month plus costs. LMI would be cheaper then this!

 

[bennido]

I spoke to my broker / lawyer today and they suggest trying to move the settlement date as well.

Hope the buyer hasn't made any concrete plans and is willing to be a wee-bit flexible.

Will post an update.