Every lender has their own terms and conditions, and this is intended only as a general guide to understanding this topic. Contact us to discuss your individual circumstances.
When moving home, you have to take into account the sale and purchase settlement dates, as they will have a significant impact on your home loan and cashflow requirements:
This is how it could happen:
Settle the sale of your existing property first, and then settle on the purchase of your new one.
✓You will know how much equity you have to purchase the new property.
✓You may have to find temporary accommodation until you settle on the new home.
✓You could consider negotiating to rent your existing property off the new owners for that period.
✓Sell with a long term settlement date and buy with a short term settlement term.
Arrange for simultaneous settlement (same day) for the sale and purchase.
✓It all happens at once. Your new loan will payout your old loan and there’s no waiting for any cheques to clear.
✓This is the most common and low stress option
Settle on the purchase first and the sale later
✓You will require finance to bridge the gap between buying and selling. For this period your Peak debt will include your existing loan plus a new loan to cover the purchase price and costs of the new property.
✓Financing this period is expensive as you are charged interest on the Peak debt for the bridging period.
✓If your income isn’t enough to repay the monthly repayments on the Peak debt, you will need Bridging finance, which often has higher interest rates with additional lender and government fees.
✓Bridging loans are not available from every lender and the loan product and rules can vary greatly.
Together we will discuss how each of these could work for you, and plan the course of action that suits you, your financial situation and your life!