Want to buy without waiting for your property to be sold, a solution relay credit!
Risk or opportunities?
The real estate bridge loan is a mortgage between 60 and 80% of the value of the property that interests you. It allows to take “the relay” the purchase of the new property and the sale of the current property.
There are several possible montages of relay loan more or less appropriate or expensive depending on the case.
The most common :
The borrower begins to repay the principal and interest only when the sale is made. He shifts the refund.
For borrowers who wish to acquire a property more expensive than the one on sale: Associated a conventional loan, it makes it possible to finance the whole operation purchase / resale. With a period of 2 years to repay the sale of the property allows the early repayment of credit without any penalty. With this formula you can get a better rate and banks are more flexible.
More rare because less interesting in terms of cost. The short-term bridge loan, if you are certain of being able to repay fast, higher rate and demand for strong guarantees. In the case where the good is of less value than that sold.
The mortgage real estate loan makes it possible to buy a property even before having sold the current property. The maximum duration of the mortgage real estate loan is two years but, given the rates and the additional cost generated by the transaction, it is advisable not to exceed one year. The real estate credit agency will eventually require an expertise of the property for sale to set the amount of mortgage real estate relay that can rarely exceed 80% of the estimated value of the property to sell. According to the banks the financing solutions can vary as those listed above. For everyone to choose the most suitable solution for their real estate credit, for this our profession of broker specialized in real estate credit advice to the best of your interests.
Beware if the real estate market is frozen some borrowers can be at the end of two years without selling the property. It is possible to request an extension of the deadline but it is difficult to obtain, the solution remain open to negotiations knowing that the credit relay at a cost each year.