If the bank says NO, DFS can get you a YES!
Whether buying a new property, renovating an existing one, or selling your home, sometimes you need immediate funds while awaiting the sale or settlement of another property. This is where bridging finance comes into play, providing a short-term solution to bridge the financial gap.
In Australia, one popular option is open bridging finance. Keep reading as we unravel open bridging finance so that you can better understand the ins and outs of open bridging loans.
Open bridging finance is a short-term loan that allows borrowers to access funds for a new property purchase while awaiting the sale or settlement of an existing property. Unlike closed bridging finance, which has a fixed repayment date, open bridging finance offers more flexibility by not imposing a specific exit strategy. This means borrowers have the freedom to repay the loan as soon as they sell their existing property or find an alternative source of long-term financing.
The open nature of this financing option may enable borrowers to adapt to changing circumstances. If a property sale falls through or the settlement is delayed, borrowers may be able to continue utilising the bridging loan until they secure an alternative solution. This flexibility ensures that the purchase of the new property can proceed smoothly, reducing stress and avoiding potential losses.
Open bridging finance provides borrowers with the means to seize investment opportunities without waiting for the sale of their current property. It enables quick access to funds, allowing borrowers to make time-sensitive property purchases or renovations.
Lenders offering open bridging finance understand the urgency involved in such transactions. Therefore, the application and approval process is designed to be swift and efficient. Borrowers can expect a faster turnaround time, ensuring they can take advantage of opportunities promptly.
Open bridging finance offers a more extended bridging period than closed bridging finance. This longer duration gives borrowers increased flexibility and peace of mind, knowing they have ample time to finalise the sale or settlement of their existing property.
As with any financial product, the interest costs vary depending on the lender and borrower’s circumstances. However, open bridging finance typically offers competitive interest rates, making it an attractive option for borrowers seeking short-term funding.
Open bridging finance is well-suited for a range of different property funding needs:
Diverse Funding Solutions offers fast bridging loans that benefit business owners seeking swift financial solutions. Our efficient process and cost-effective structure enable you to acquire the necessary capital to expedite property transactions like never before.
We provide flexible repayment terms and competitive interest rates, ensuring affordability. Leveraging our extensive expertise in the finance industry, we strive to source the most favourable deal for you. With access to a vast network of over 200 lenders and a straightforward application process, you can swiftly progress with your project without enduring weeks or months of waiting.
Our bridging loans from Diverse Funding Solutions come with rapid approval times thanks to our efficient team and straightforward application process. Our experts are committed to ensuring a smooth and expedited experience, facilitating prompt access to the capital you require. We guide you throughout the process, from pre-approval to closing, to ensure you secure the financing you need without unnecessary hassle or complications.
In addition to their expeditious nature, Diverse Funding Solutions’ fast bridging loans offer the advantage of being generally easier to manage than traditional bank loans. We understand that banks can sometimes be slow to respond or burden you with extensive paperwork. Therefore, we have streamlined our process, minimising unnecessary hoops to jump through.
At Diverse Funding Solutions, we remain dedicated to providing swift bridging loan solutions that offer our customers the flexibility and security they require to progress rapidly and affordably with their projects. Our competitive rates and flexible repayment terms enable you to access the necessary capital without undue trouble or stress.
Talk to the team today to find out how we can help you bridge the gap between property purchases!
The bridging loan period is typically short, usually ranging from a few weeks to a few months. It depends on the expected timeframe for the sale of your existing property and the lender’s conditions.
The amount you can borrow depends on various factors, such as the value of your existing property, the purchase price of the new property, and your financial circumstances. Typically, lenders offer bridging finance that covers a percentage of the anticipated equity in your existing property.
Interest rates for open bridging finance can vary depending on the lender, loan amount, loan term, and your financial profile. Generally, bridging finance rates are higher than standard home loan rates, as they are considered higher risk due to the temporary nature of the loan.
Most open bridging loans are essentially paid via interest-only repayments until the maturity date or when the existing home is sold. The peak debt amount is the amount of the existing home loan and bridging loan. The full amount of peak debt is repaid once the existing home’s sale proceeds are received at settlement.
Yes, additional fees can be involved with open bridging finance, such as application fees, valuation fees, legal fees, and early repayment fees. Reviewing the terms and conditions the lender provides is essential to understand the complete cost structure.
