End Debt Vs Peak Debt

Peak Debt.
Peak debt means that in order to qualify with the lender, you need to be able to service the combined debts of the property you presently have a mortgage on plus the debt of the property you are going to purchase.

In other words if the property you presently own or live in has a debt of $200,000 and you are buying a new property and need finance of $400,000, then your income must be sufficient to service the total loan of $600,000.

Peak Debt Repayments.
With a peak debt loan, you must continue making monthly repayments on both loans.

End Debt.
End debt means that you only need to service the debt balance once you have sold your existing property.

In other words, if your present property is worth $350,000 and you owe $200,000 and you buy a new property worth $400,000 then when you eventually sell your previous property, you will technically have a profit of $150,000 which will then be places against the new property which means you will now only have an end debt of $250,000.

End Debt No Repayments.
With an end debt loan you do not need to make any repayments until you have sold your original property.

If you elect to choose this option, interest is compounded onto the loan until such time as you start making repayments. You do of course have the option to continue making your normal repayments if you so choose.


Short Term Caveat Loans

 

 

Bridging Loan

 

Relocation Loans or Bridging Loans are also called Go Between Loans all of which can be a solution to a problem many home buyers encounter. Finding a new property you want to purchase prior to selling your existing home. Without the proceeds from the sale of your existing property, there is a financial gap to cover.
The goal of a bridge loan is to remove this financial obstacle so that a new property purchase can proceed. In the majority of situations, bridging finance provides additional funding so an individual or company can continue to make the repayments on its existing property for as long as it remains on the market.

Bridging Finance While Settling a Property.

Everyone knows it’s difficult to time the sale of one property to coincide with the purchase of another property. The slightest delay can wreak havoc on the transactions and create obstacles that are difficult to overcome. Having to pay 2 mortgages can spell financial disaster.

 

Short Term Loans - Quick Finance

The provision of caveat based short term loans has been our business for a number of years.

We believe our Funder provides one of the most professional and competitive series of products available ranging from loan terms of 30 days to 6-12 month terms with highly competitive rates.
Short Term Bridging Loans