What are short-term property loans?
As the name suggests, short-term financing solutions have shorter repayment periods than traditional long-term mortgages. They meet immediate funding needs for purchasing, renovating, or bridging financial gaps between property transactions.
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- Immediate access to funds: Fast approval and disbursement.
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- Short-term duration: Repayment periods typically range from 1 to 24 months.
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- Flexible use: Suitable for residential, commercial, or investment properties.
Benefits of short term property loans for upsizers
Short-term loans offer several advantages for property upsizers that can make the transition to a larger home smoother and more manageable.
Quick access to funds: Immediate access to the necessary funds to purchase a new property benefits upsizers who need to act quickly to secure a suitable home without waiting to sell their current property.
Financial flexibility: Manage their cash flow effectively, finance necessary renovations and cover holding costs until their existing property is sold.
Reduced stress: Alleviate this stress by providing the funds to bridge financial gaps, ensuring smooth transitions and timely project completion.
Maximising returns: Take advantage of market conditions, complete necessary renovations quickly and sell their existing property optimally, maximising their investment returns.
Funding’s short-term loan solutions
At Funding, we understand the unique challenges faced by property upsizers. Our short-term financing solutions provide the flexibility and support to navigate these transitions efficiently.
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- Speedy approvals: Our streamlined application process ensures quick approvals, often within three business days.
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- Competitive interest rates: Our competitive rates make our short-term property loans attractive for upsizers.
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- Flexible terms: Our loan terms range from 1 to 24 months, providing ample time for clients to complete their property transactions.
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- High loan-to-value ratio (LVR): We offer high LVRs, allowing clients to borrow a significant portion of their property’s value.
Step 1: Application
The first step is to apply for a short-term property loan through Funding. Property upsizers must provide details about their current property, the new property they intend to purchase, and their financial situation.
Step 2: Approval
Funding’s approval process is quick. The expert local team reviews applications as they are submitted and typically provide conditional approval in 48 hours. We assess the client’s eligibility based on factors such as credit history, property value, and purchase price of the new property.
Step 3: Disbursement
Upon approval, the funds get disbursed quickly, allowing the borrower to proceed with the purchase and any necessary renovations. The loan amount usually covers the purchase price, renovation costs, and associated expenses.
Step 4: Transition
The upsizer can now focus on moving into their new home and preparing their existing property for sale. During this period, they can make interest-only payments on the loan, reducing their financial burden. The proceeds repay the short-term loan once the existing property is sold.
Get started
Are you looking to secure your dream property? Bridging loans provide fast access to funds and financial flexibility, empowering property upsizers to acquire new properties, fund renovations, and confidently navigate market conditions. If you’re ready to enhance your property transition, Funding is here to help you realise your dream.
Learn more
For additional resources and information on loans and upsizing, explore these helpful links:
