A happy household of 5, the family was looking to upsize their family home and move into the leafy Hills District. Having worked and saved hard, our clients had enough for the initial 10% deposit but the rest was locked in their current home. They had 3 young children so regardless of if they had to sell first or settle simultaneously, both would represent a logistical challenge.
Before they had listed their current home for sale our client found their dream home – a 5 bedroom, 2 bathroom house on a 700 block of land in Kellyville. This was an opportunity they could not miss so they immediately listed their home for sale. They made a strong winning offer, waived the cooling off period and with that the 6 week window to sell and settle began.
At the time of purchasing the new property our client had a standard pre-approval. As it seemed unlikely for their current property to sell and settle all within 6 weeks it was agreed that a bridging loan would represent the safest option. Even if the property did sell simultaneously or beforehand a bridging loan would allow the option of moving at their own pace, rather all within the one day which can be very stressful for a family of 5 including 2 busy working parents. However this needed to be balanced with the cost of bridging as during the bridging period (which is when they hold both properties) they are paying interest on a large loan amount at a high rate.
With the client’s best interests in mind we aimed to have a 1 week bridge period which meant within 1 week the current property would be refinanced to the new lender, the new property would be funded and then the current property would be discharged and new loan paid down to the desired end loan amount. This was a big ask as it normally takes 2 weeks just to discharge 1x property!
In the end we did exactly as we promised and managed to bridge their home for 1 week plus settle the new home so the family could peacefully moving to their new home without a hefty interest bill!