When dealing with property transactions, understanding the different financial options available is crucial. Two commonly confused terms are “property bridging finance” and “general bridging loans.” Although they sound similar, they serve different purposes and can have significant impacts on your financial decisions.
In this blog post, we’ll explore the key differences between property bridging finance and general bridging loans, helping you understand which option might be best for your situation.
What is Property Bridging Finance?
Property bridging finance, also known as a seller’s advance, is a short-term loan that provides sellers with immediate access to funds from their property sale before the sale is finalised. This type of finance is particularly useful for covering costs such as:
- Clearing outstanding rates and taxes
- Covering urgent home repair costs
- Securing a new home
- Handling personal emergencies
How General Bridging Loans Work
General bridging loans, on the other hand, are designed to help buyers bridge the financial gap between purchasing a new property and selling their existing one. This type of loan ensures you have the necessary funds to complete the purchase of a new property before the sale of your current property is finalised.
Key Differences Between Property Bridging Finance and General Bridging Loans
Purpose
- Property Bridging Finance: Aimed at sellers who need early access to funds from their property sale.
- General Bridging Loans: Aimed at buyers who need to cover the gap between purchasing a new property and selling an existing one.
Application Process
- Property Bridging Finance: Typically involves providing proof of the pending sale and any necessary documentation, such as an ID, bank statements, and payslips.
- General Bridging Loans: Requires proof of the purchase and sale agreements, as well as the current mortgage details.
Benefits
- Property Bridging Finance:
- Immediate access to funds
- Covers urgent costs
- No hidden fees, no minimum period
- Same day payout
- General Bridging Loans:
- Helps secure a new property
- Avoids the need for temporary accommodation
- Provides financial flexibility
Make Informed Decisions
Understanding the differences between property bridging finance and general bridging loans can help you make informed decisions during property transactions. Whether you’re a seller needing quick access to funds or a buyer looking to bridge the gap between properties, knowing which financial option suits your needs is crucial.
At Future Finance, we’re committed to providing exceptional service and flexible solutions to meet your financial needs. For more information on our property bridging finance services, visit our Personal Loans page.
Contact Future Finance today for a free consultation and see how we can help you achieve your financial goals after your property sale.
- 031 830 5205
- info@future-finance.co.za
- 2 Ncondo Place, Umhlanga Ridge, Durban
