If you are thinking of selling your house to buy another, you can find this situation: you already have identified or chosen the house you want to buy, even agreed a very good price that you do not want to miss, but you have not yet sold yours, because the few offers you received were at demolition prices. Hiring a bridge mortgage or home mortgage can be a solution.
Almost all banks currently ask you to provide savings for a minimum of 20% of the purchase price, to grant you the new mortgage. Once you sell your current home, the portion of the loan that falls on this guarantee is canceled, and the rest of the loan is placed on your new home as a normal mortgage loan.
- You can finance 100% of the purchase plus the expenses
- You only pay interest on the total loan during the grace period
- Pay a fee similar to the one you will pay when you sell your current home
- You can buy without needing to sell
- You will not have to pay a higher fee for the loan, until the sale of the 1st home
- It also allows you to rent the current house, so that the expenses of the installments can be faced with the rent and when you consider that the real estate market improves the sale of the house.