It may prove to be quite a challenge to choose and settle for the right time to sell the property you currently own when looking for a new one. You may have already zeroed in on the house of your dreams but you are yet to find a prospective buyer for your present home and this is where bridge financing may help immensely.

Also referred to as a bridge loan, it essentially enables the borrowers to source the time required to close their current home and the house that they are interested in purchasing, allowing them to carry the loan on both properties for a certain period, often up to about three calendar months or ninety days to be just precise.

With bridge financing, you are effectively utilizing the built-up equity of your present house to finance a part of the total cost of acquiring another property, including paying for the down payment of your new abode. It also means that you will not have to let go of the once-in-a-lifetime opportunity of owning your dream home whilst waiting for a potential buyer to sell your existing house.

Hence, the ability to ensure liquidity and the flexibility to bridge the time difference (necessary for closing the sale of your current property and purchasing a new one) are two of the most significant advantages of a bridge loan. Now you know why it is called bridge financing!

Call us now for any queries or further information on how you may benefit by obtaining a bridge loan from Royal King Mortgages!