Hello, hoping those with a background in mortgage broking can assist.
I have the majority of finance sorted for a new purchase, however, due to a customer loan cap rule that I was not aware of previously, I need ~100k bridging loan (have 2 properties currently in the process of being sold). Does anyone know if any banks/non-bank lenders provide this without doing the loan for the new purchase through them as well (ie. only providing the bridging loan)?
not yet, hoping for some broker recommendations :)
I am not aware of customer loan caps.
But if true and your first option bank is going to have you $100k short, why didn't you just tell them that you are taking your business elsewhere?
That would be cheaper than applying for yet another loan, another credit event, and the next bank will likely also want a hold on one or two properties which is more expenses.
I did and they said it was a steadfast rule
I have and could not find a definitive answer. A bridging loan can be a common event when attached to the new property loan, but I cannot see anything about a bank willing to consider a bridging loan independently.
Try these guys: https://www.bankaust.com.au/personal/borrow/home-loans/bridg…
There are usually reasons for taking the bridging loan with the same instituion who are giving out the normal loan. Ease of dealing, less credit checks, etc
What security would you be providing for the 'bridging' loan to this intermediary lender? It sounds like none?
In that case it is really just an unsecured $100k personal loan you are after.
It's effectively a second mortgage + mortgagee on the new property. I can't imagine such a scenario where this would be profitable for the new lender at all taking into account rarity of this occurring and having existing systems and processes to support such a loan. Sounds more like a service a loan shark would offer…..
You'd be lucky to find a mainstream lender willing to take this on, even assuming you have security to offer. The return on a short term loan just isn't there. App fees rarely cover the costs involved in setting up a new loan, and for one that's going to be discharged as soon as property/s are sold, the lender will not have time to recoup costs.
Tried a broker?