Real estate: I want to buy a home before selling my current home, what should I do?

Bad timing, the worry of finding yourself without a roof over your head… sometimes the conditions aren’t right to match the new sale of your current property. But fear not, there is a solution: bridge loan. This temporary financial solution It is designed specifically for owners who want to get a new home before selling their current home, he explained

A bridging loan is a short term creditgenerally permanent Between 12 and 24 months. The bank advances a significant part of the estimated value of the property to be sold: between 50 and 80% of the total amount. For his part, the borrower undertakes to repay the amount as soon as the sale is completed. If this device is a practical solution, be careful, however, because it can be dangerous decrease in transactions in the market real estate. Depending on the need, there are different types of bridging loans

Three types of bridging loans

First of all, dry relay ready It is especially aimed at new property owners equal to or less than current assets For Sale. Then the bank advance corresponds to the estimated amount of the property to be sold and there is no need to take out an additional real estate loan. The goal is to cover the purchase of the new property solely with the proceeds from the sale of the old one. An onshore bridging loan is generally made on a temporary basis 12 months and it is renewable once. However, the credit rate for this bridging loan is less favorable, because the bank only receives interest during the loan period.


Real estate: I want to value my old house, how do I do it?

THE linked bridging loanalso called deck bridge loan, is aimed at those who want to buy a home at a higher price than the current home. Bridging loan then comes along with a classic real estate loan to complete the contribution generated by the sale. Borrowers pay back the interest on the bridging loan, as well as the monthly mortgage payments, until they sell their property. After the transaction, the amount of the bridging loan is returned and the customer continues to pay the mortgage according to the initial terms. In this case, the monthly payments can be high, so you should carefully evaluate your repayment capacity.

Finally, bridging loan It allows you to acquire a new property with the help of a loan, while still paying off the property loan on your current property. the bank then add the two monthly payments together (bridging loan and existing property loan). And unfortunately, if you can’t sell your property after a year, it’s generally possible to extend the bridging loan, or even convert it into a traditional loan if your means allow.

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