Today I officially starting feeling really bad. It's been over a week since I've blogged anything and not because I haven't had anything to write about but purely because I've been too lazy!
So I'm off my fat a$ and I'm BACK! We're also going to make a conscious effort to change the layout and look of the property blog! Any hints and assistance from our regular readers would be awesome, so please feel free to email me your ideas firstname.lastname@example.org or just leave a comment.
But today is all about bridging finance.
What is bridging finance? By definition: Bridging finance is a short term loan normally associated with gap finance required between the purchase of a new property and sale of an old one.
When purchasing a property there are those hidden costs that are often not given to you upfront. The agent will conveniently forget to mention it or the bond originator you use forgets to tell you when trying to get that bond or yours or even better, you decided to do your bond yourself and those lovely friendly helpful bank agents don't' even bother telling you cause you're meant to know these things dammit!
If you need some assistance with bond registration costs and transfer costs check out this section of our website. Costs involved with taking out a home loan.
Now, we all know that there are home loan offerings from all the banks that will include your bond registration and transfer costs in the bond. Some banks call this a 108% loan, others call it a bond PLUS costs and some refer to it as a first time buyers loan.
Remember you only qualify for costs inclusive in your home loan if you are a first time buyer and you can afford it. People who get costs included in their home loans on second puchases and third purchases are LUCKY, they've slipped through the credit managers eyes somehow.
Some banks in South Africa DO NOT PAY your bond registration and transfers costs upfront! They only pay you these costs once you have paid them yourself, I believe Standard Bank work like this. This poses some major problems for home purchasers and the reason they asked for bond costs included in your home loan was because you can't afford to fork this money out upfront...
Well, this is where bridging finance comes to the rescue. Although many attorneys offer bridging finance be very careful to read through the terms and conditions before signing anything.
Wizard have partners that are certified and reliable bridging finance providers offering some of the lowest rates available in South Africa today. Check out our bridging finance section on our site for more information.