Your selected lender will assume security over both properties and make loans against them until both the sale and purchase procedures are finished. Your house loan will often be charged as an interest-only loan during a bridging loan period. Numerous lenders have interest rates that are either somewhat higher than or equal to the normal variable rate.

Purchasing a new house prior to selling your current one can be accomplished with bridging home loans. In addition to being used to finance the building of a new home while you are still residing in your current residence, they are sometimes utilized to finance the acquisition of a new property while your current property is being sold.