Bridging finance at auction
| # | Post |
|---|---|
| 1 | Just wondering if anyone has experience with this, I'm wanting to know if I take out bridging fiance to enable me to bid at auction without selling my property prior but don't end up using it on the day would I then be stuck with the loan? I will of course discuss with my bank next week, I've searched online but can't find any information on this scenario. racheal77 - 2021-07-25 16:11:00 |
| 2 | It would be no different from any other prospective purchaser with pre approval. If you don't buy the house you don't draw down the loan. If you do buy the house the loan isn't drawn down until the day of settlement which could be several weeks or more after settlement. alimmw - 2021-07-25 16:20:00 |
| 3 | Thank you, I was thinking this would be the case but as I say can't find anything online. racheal77 - 2021-07-25 16:37:00 |
| 4 | Yes this has been done by family members. msigg - 2021-07-25 17:08:00 |
| 5 | alimmw wrote:
At auction you need approval not pre-approval. johnston - 2021-07-25 21:05:00 |
| 6 | Banks generally not keen on an open bridge which is what this would be. There are alternatives, however, be prepared for rates in excess of 7% and 2% of the loan size in fees. Not cheap! jeffqv - 2021-07-26 09:30:00 |
| 7 | All good, I expect there would be fees and interest etc..just wasn't sure if it was possible without committing to selling our house first racheal77 - 2021-07-26 10:49:00 |
| 8 | It is possible, the company i use charge a 1.25% fee and i charge .75% when and if the loan is required as you wont know until you win the auction. there is an approval fee of $2000 as part of the total fees payable up front so if you dont use it then the lenders that have done the work and reserved the funds still are remunerated for their work to some small degree. shorebee - 2021-07-28 14:23:00 |
| 9 | Good question because this must happen if you are buying a new house and haven't yet sold your existing one. I'm sure the settlement dates don't always align up. spidermurti - 2021-08-03 16:48:00 |
| 10 | spidermurti wrote:
Happens quite a bit, especially in this world of auctions. The costs can be scary though so best avoided if at all possible jeffqv - 2021-08-04 14:41:00 |
