Have decided to buy a new property but could not proceed till your old property gets sold? Without gaining finance by selling property you cannot purchase a new asset. But there is mid way which will provide you appropriate finance to bridge the gap between selling and buying of property. Such provision can be termed as bridging loans. These loans are basically short term finances offered to the borrower till he or she secure permanent financing condition.
Acquisition of Bridging loans relies on two essential aspects. One is requirement of funds and the second one is availability of funds. These loans will finance your requirements till some obligation gets removed. Small tenure funds made available for you till long term financing gets arranged.
These loans are effective finances endeavored to even up the rift between real estate transactions. Typically there are two forms like open and closed bridging loans in which bridging loans can be availed by the borrower.
Open these loans are sanctioned for borrowers who are ready to purchase a new property without finalizing about selling of the old property. However closed loans are where the borrower has given his or her consent for both buying and selling of properties.
The loan sum to be borrowed depends on the value of the property. Besides the tenure for repayment of gained loans varies from 2 weeks to 1 year.
Being a short term unsecured loans; these loans come with comparatively higher interest rates to be paid off within predetermined schedule. Credit checking will not be performed here, thus entry has been free for borrowers with poor credits also. But good credits could be an added advantage for you.
Loan sum issued by the lender can be expended for purchase of new commercial property, for expansion of existing business, for investing in real estate business etc. @ www.bridgingloans.net.au
