NAVIGATING THE MEANS OF

BUYING & SELLING

Are you looking to buy or sell your home?

Our dedicated team has unparalleled experience when it comes to buying and selling, no matter whether it is your first, second, third or even fourth home.

When you’ve been through the process of purchasing a property before, you probably know just how stressful it can be trying to organise your home loan.

If you are relying on selling your current home in order to purchase the next, you may face difficulty organising funds to cover any time gap between the sale of your current property and buying your new home. In this case, a bridging loan could be the solution.

There are different things that can happen when you are ready to ‘move on’ from your first property, such as turning your current home into an investment property and using available equity to help you purchase your next home.

Things like this can become quite complex and using a specialist like Margin Finance can help remove any stress, or room for potential error, from the process. Leave it with us and we will make sure your loans are structured perfectly to suit your unique situation.

So, should you buy first or sell first?
Here are our tips.

Look at the current market and the area you would be buying into or selling out of

Understand your financial position and which option may be best for you

If you have come to a decision, it’s worthwhile to speak to an expert about your decision

Always have a backup plan… sometimes settlement periods do not always match up

Buying & Selling FAQs

  • A bridging loan acts as a short term loan that funds the purchase of a new property whilst selling your existing property.

    Bridging loans can also provide finance for you to build a new home while you live in your current home.

    Generally, you would have 6 months to sell the existing property or 12 months if you are waiting for your new home to be built.

  • There are two types of bridging loans:

    Closed bridging loans – this type of bridging loan is used if you already have a Contract of Sale on your current property and know the date when your home will be sold and the funds received. You’ll pay down the loan plus any accrued interest and fees on this date.

    Open bridging loans - used if your current home hasn’t been sold yet. An open bridging loan can be arranged for up to 12 months.

  • Another finance option is a deposit guarantee, also known as a deposit bond.

    Instead of putting down a cash deposit to secure your new home, you take out a deposit guarantee provided by a lender.

    It can be a cheaper alternative to a bridging loan and it provides you with reassurance that the new property will be held until you settle your own home.