Bridging Loan

You will need a Bridging Loan when you are selling and buying a property at the same time and your sales proceeds will not come in time for the downpayment of your purchase. Banks will only grant bridging loans on your sales proceeds.

Most banks offer Bridging Loans to exercise your Option, pay downpayment, legal fees and stamp duties. Maximum repayment period is up to 6 months.

This timeline must be well planned. Once the sale of the existing property is completed, the sales proceeds will be used to pay off the Bridging Loan and interest costs.