What finance options do you have?

4 mortgagematters

Looking to sell and buy? What finance options do I have?

Below are two possible options:

1) Sell your current property and buy a new one, with a small overlap between the two settlements.

This is called “closed bridging finance”. This basically means that both agreements are unconditional and therefore “closed”.

Remember: for a while you would be paying two mortgages at the same time, so make sure you budget for this. Your lender will want to see that you have enough income and savings to make this work.

(There could be extra legal and banking fees, so please get advice).

2) Seek a pre-approval from the lender, based on the scenario of you buying a new property and renting out the old one out.

This is called “open-ended bridging finance”. As there is no set date to sell your old property, the bridging is considered “open”.

You have to show that there is enough equity, income and rent, to hold both properties for an infinite time.

This option makes it easier to place quick offers and go to auctions.

The above are just two options to be explored. Before placing any offer, please consult your mortgage adviser and solicitor.

For further details, feel free to contact Ivan on 09 427 5870 or 0275 775 995, or email ivan@ivanurlich. co.nz

Ivan Urlich is a registered financial adviser specialising in mortgages. His disclosure statement is available free of charge on request.

lettertotheeditor

A huge thank you to all the people of Millwater who have helped and supported me over the last 6 months; it has not been an easy time for me and I have been overwhelmed by the help and encouragement from so many people in the area. It was so lucky that we moved here two years ago, as I would never have had such kindness anywhere else. Again a very big thank you – I just hope I can return some of your kindness in the future.

Sincerely, Anne Mahon