Bridging Loans

Leo Callisto, Sales and Marketing Manager for apg, explains the premise of a standard bridging loan. "While your home is up for sale, the lender advances the money so you can build your new home. The interest charged to your loan can be paid by you or capitalised (added to the loan amount) providing you have equity in your existing home."

He further explains "When your original property is sold, the proceeds are deposited to the new loan. Any residual left owing becomes your end loan and normal repayments commence."

• Live in your current home while you build your new one
• No stress of locating a suitable rental for your family in a tight rental market
• No upheaval of relocating the family & children stay in same school with friends close by
• Move only once instead of twice or three times
• No stress of selling under pressure
• No dead rental outlay
• Pick up potential capital gain on new home while under construction
• Pick up potential tax free capital gain on existing family home
• No negative impact on current cash flow as repayments can be factored into loan facility
• Use equity in current home to finance 100% of new home and land costs