• Bridging Loan

    • Bridging Loan Image

      Bridge the gap between your old and new property

      Ideal for: Upgraders, Downsizers

      RAMS Bridging Option could be just what you need to assist with the purchase of a new property whilst you’re in the process of selling an existing property.

      It eases the strain of purchasing your new property by bridging the finance gap whilst you wait to receive proceeds from the sale of your existing property.

      Key Benefits of RAMS Bridging Option

      • You continue to make normal repayments on your original loan amount ONLY, until your existing property is sold.
      • Interest on the new finance is calculated and capitalised on that loan for up to 9 months 1.
      • This means you do not have to make repayments on your bridging finance, leaving you to take care of your home loan repayments only.
      • Your monthly repayments will not increase - even though you have 2 properties and 2 loans in accordance with the terms of the RAMS Bridging Option.
      • The cost of the new purchase such as stamp duty and legal fees can be included in the Bridging Finance (subject to lending criteria).
      • Once your existing property is sold, proceeds from the sale pay out the existing loan in full. Remaining funds are applied to the bridging finance to reduce the loan limit as agreed from the application. Then normal repayments commence.

      Some Important Information and Conditions of RAMS Bridging Option:

      • Maximum 12 month bridging term with Interest Only Capitalised repayments, converting to Principal & Interest repayments.
      • Maximum LVR is 85% .2
      • Available for vacant land purchases.3
      • Not available for construction loans, Company or Stratum Titles.
      • Refinance of another lender’s loan is acceptable. Normal RAMS lending conditions apply.
      • No redraws on the bridging finance allowed during the bridging term.

      RAMS does not charge a higher interest rate or extra fees because you need bridging finance.  

      1.  If your property hasn’t sold, RAMS offers an extension of 3 months then the loan is reassessed again at 12 months.

      2 The maximum LVR includes settlement fees, application and legal fees.

      3 Conditions apply.

      • Hypothetical scenario

        Mark and Maggie started to look at new homes to get a feel for the market, when they found their ideal home. They still hadn’t talked to an agent about selling their current home and the auction for their ‘ideal home’ was only three weeks away.

        The RAMS solution

        Mark and Maggie talked to an agent who arranged a valuation of their current home, and gave them a broad idea of what the property might reach at auction.

        Mark and Maggie met with a RAMS Home Loan Specialist to discuss whether they could afford a new home before selling their existing one and their finance options. With a RAMS Bridging Loan Mark and Maggie could secure the new property (whilst stilling owning, but organising for the sale of, their current home). The faster they sold their current home, the sooner they could start to reduce their debt.

        After obtaining a RAMS Bridging Loan and purchasing their dream home, Mark and Maggie started organising their current house for sale – thanks to the features of the RAMS Bridging Loan.

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