A bridge loan is intended for someone who wants to buy a new home before completing the sale of their current one. It bridges the time gap between the two transactions and allows flexibility in timing.
When It Fits
When a new home has been found but the current one hasn't yet sold, or when you want to avoid the pressure of a quick sale at a low price.
How It Works
Usually a short-term loan that is repaid once the sale of the current home is completed. The repayment and indexation vary between lenders, so it's important to understand the terms and the realistic timeline for the sale.
The Risks
The main risk is a delay in selling the current home, which lengthens the bridging period and increases the cost. Conservative planning of the timeline and the sale price reduces the risk.
How MKOR Guides You
We assess whether a bridge loan is the right fit, calculate the cost against alternatives, and guide the timing of both transactions.