Bridging Loan

A bridging loan is a type of short-term finance that assists borrowers in bridging the difference between the purchase and sale of an existing property. When timing is critical, as it often is when sales are delayed, it offers prompt access to funds.

Common uses of bridge loans include:

Bridging the divide between real estate purchases and sales
Short-term funding for the maturity of investments
Financing essential initiatives
Easy access to funds

For bridging a short-term financial gap, bridging loans are a great option. They are useful if you need to take out a short-term loan. These loans work well in situations where there is a deadline, such as auctions, or when you are buying a new house but haven’t yet sold your old one.

Types of Bridging Loans

Short-term loans known as “bridging loans” are used to purchase a property before it is sold or refinanced. They are of two varieties: open and closed.

A. Open Bridging Loans

This is for purchasers who require quickness and flexibility. They pay higher interest rates and use their property as collateral to secure the loan, which they can repay whenever they choose.

B. Closed Bridging Loans

For purchasers with a predetermined date of payback. They pay lower interest rates in exchange for having to show documentation of their loan repayment plans.

Flexibility

Its purpose is to fill the gap between long-term investments with short-term financing. They are frequently more versatile than other loan options and can be customized to meet your needs.

Simple & Quick Application Process

Bridging loans have processing timeframes as short as 24 hours, and they can be completed in 1-2 weeks, which is far shorter than the typical 3–4 month loan period.

Multiple Security Options

Although bridging lenders will secure the loan against real estate, you have the option to extend the loan term or divide the risk across multiple properties.

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