Important information

Please be aware of the following;

Effective Immediately Tuesday 6th March 2012 Credit License Cancellation Lodged By Us With ASIC

Ability Finance have elected to cease all credit activities covered by ASIC credit licensing for various reasons including but not limited to;

  1. Lender commission cuts over the past few years.
  2. Additional liability, workload and costs arising from National Credit Licensing
  3. Lender minimum volume restrictions which result in smaller brokers not being able to offer all options to customers.
  4. Regularly encountered inexperienced lender staff who are unaware of their own employers policies whose advice wastes both broker and customers time and resources.
  • As a blog style website there is only historical content contained within this website that is out of date and no longer applicable. This content must only be used for historical reference purposes.
  • Ability Finance, through choice, no longer represent any lenders who may be historically referred to within this website.
  • No information or content contained on this site should be relied on as being current.
  • No content contained within this site should be taken as advice in any way at all.

Should you feel there is any content that should be removed from this site please contact the webmaster.
By any chance you feel specific content is interpreted as offering any credit activities by us it is to be ignored, please report to the webmaster for removal or modification.
If you are legally entitled to engage in credit activities and would like to advertise on this site please contact the webmaster.
If you would like a website developed or even to purchase this site modified to your requirements please contact the webmaster.
Meanwhile we are working hard at creating a one stop shop for purchasing high quality spray painting equipment online including an extensive range of the best spray gun models we are able to offer at discounted prices everyday right across the complete range of available spray gun models. Online spray gun prices with old fashioned personal service levels.

Bridging Finance

Bridging Finance or Relocation Loan

Sometimes the best laid plans can go astray and coordinating both the buying and selling of property may not coincide. This is especially common if you find the home of your dreams whilst your current property is still unsold or you'd like to build a new home and continue to live in your present home during the construction period. In times like this relocation or bridging finance can help.

Bridging finance is designed to help home buyers manage the gap between the purchase of a new property and the sale of another. For many, it is a lifeline that takes some of the stress out of purchasing a new home or investment property while selling an existing property. With most lenders bridging loans follow the same basic principles but may have variations in the actual terms and conditions.

Your finance broker provide the detail how these terms and conditions will affect your borrowings and discuss which offering comes closest to meeting your individual needs. There are a number of ways that bridging finance can be of value to property buyers, for example, you require funds for a short period of time to purchase or build a new property while your old property is still on the market.

To facilitate this, the bank would take security over your old property and your new property and provide you with a short term loan. When your old property is sold, the bank then applies the proceeds of the sale to the bridging loan, and any funds still owing could become the mortgage on your new property.

Bridging finance is usually available for terms ranging from a few weeks up to 12 months. Depending on your circumstances, most lenders will either capitalise the interest during a period of bridging finance so there are no scheduled repayments, or will require scheduled interest-only repayments. This makes bridging finance affordable for many borrowers who could not afford to carry two mortgages at the same time. The interest rates applied to loans during a bridging finance period may be marginally higher than the standard variable rate available. However, once the bridging period ends and your loan returns to a normal home loan product, then lower market rates usually apply.

Your application for bridging finance will be prepared and submitted to the lender by your finance broker. Your loan serviceability will usually be based on your capacity to repay the end debt. The end debt is any remaining loan balance after your existing home is sold and the sale proceeds have been applied to pay down the bridging loan. Bridging finance can conveniently solve the problem of having to sell before you buy or build.

It can give eligible borrowers a valuable safety net when considering a new home purchase and may provide the flexibility to act quickly to secure that dream home or an ideal investment property. Remember, your finance broker is experienced in packaging bridging finance and will be able to discuss with you the different terms, conditions and serviceability guidelines of each lender. This will assist you in finding a home loan with a bridging option that is suited to your individual needs.