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Bridging Loans
Pioneer's Bridging Loan offers you an easy way to purchase or build a new home, before you have sold your existing home.
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Our Bridging Loan gives you 6 months to sell your existing home (or 12 months if you are building a new property) where you don't have to make any repayments on your new loan.
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How Pioneer's Bridging Loans can work for you:
- A new loan is established to purchase the new home (or to purchase the land and construct a new property) and to payout the loan against your existing home, if it is not currently with Pioneer.
- LVR up to 100%. You can borrow up to 100% of the value of your new home, as long as your combined loans do not exceed 85% of the combined value of both your new and existing properties (inclusive of capitalised interest on the new loan).
- Serviceability - your ability to service the loan will be based on the loan amount remaining after the sale of your existing property.
- No Repayments required on new loan. You don't need to make two sets of repayments while selling your existing home. The interest on the new loan is capitalised onto the loan during the bridging period. Therefore no repayments are required on the new loan for the bridging period, however you will need to make sure that you keep making repayments on your existing loan until the property is sold. (If your existing property does not sell during the bridging period you will be required to make repayments on both loans until the property sells).
- Principal and Interest or Interest Only repayment structures. Put simply, you can choose whether initially you would like to repay just the interest on the amount you borrow or installments of the amount you borrowed plus interest. Paying back the loan on an interest only basis is a popular option for investors. Pioneer's range of term loans allow up to a maximum period of 10 years for interest only repayments.
- Fixed or variable interest rates. A fixed interest rate helps with budgeting and gives you the security of knowing exactly how much your repayments will be each month as the rate is fixed for a set period of time. A variable interest rate can fluctuate at any given stage throughout the life of your loan, which means that your minimum required repayment will also fluctuate.
- 100% Offset Available. Our Bridging Loan provides you with the added flexibility of having an Offset account attached to your Term Loan. Plus there's no loading of the interest rate to do this either! Plus you have the option of using the 100% Offset feature with a fixed rate &/or during construction.
- Lo Doc Available. Pioneer's Bridging Loan is available as a Lo Doc product. The combined loans must not exceed 80% LVR of the combined value of both the new and existing properties (inclusive of capitalised interest on the new loan).
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