Background
A couple wanted to secure their next investment property while selling their existing one. With no offer on the current property and a tight purchase deadline, they needed a flexible solution that did not rely on a cash deposit.
Challenges
As a sole income earner, the customer needed to borrow up to 80% LVR, and required a flexible, short-term solution that aligned with his project timeline – without slowing the purchase down.
Mitigants
Through a thorough credit assessment, we were confident that the customer had several strengths:
- A sound credit profile
- Sufficient equity for no deposit and a capitalising repayment structure
- A clear exit strategy with the existing investment property listed with a market appraisal
Solution
We provided a six-month, fully capitalised open bridging loan. By taking security over both properties, we were able to help refinance their existing mortgage and release equity to fund the new purchase.,
This allowed the clients to secure their next investment without waiting for their existing property to sell, giving them the time and flexibility to complete their exit strategy.
LOAN AMOUNT
$1,467,077
INTEREST RATE
8.49% p.a.
START LVR POSITION
69%
END LVR POSITION
69%
TERM
6 months
“Are you working with clients who are ready to upgrade, downsize, or secure their next property, but need to sell their current home first? We know how tricky timing can be in these situations.
Our open and closed bridging loans offer flexible short-term options, typically 6 to 24 months, with repayment structures tailored to each client, like interest-only, fully or partially capitalised. We can consider lending up to 80% LVR on standard residential properties, with fair and transparent fees for both consumer and non-consumer lending.
If you have clients requiring funding to invest in property, get in touch with your local Avanti Finance BDM.“
Harriet Wright
Business Development Manager, Auckland South and Waikato