Transcript
How do I downsize without a mortgage? A common situation we see is when someone's trying to downsize their property. They might be selling a property for 1.5 million and looking to purchase a property for $500,000. So, there's a million dollar difference there. That person usually at that stage in their life is usually retired or on a pension and they might not be qualified for a normal home loan that you'll see from the bank. There's a particular product in the market that's called a
bridging debt with no end debt. So, it's a bridging loan that you get and there's no debt at the end of the situation. The bank looks at the overall proposal and says you're selling a property worth 1.5. you're purchasing a new property worth $500,000 will extend you that loan amount for the period of say six months to give you time to sell. They will capitalize the fees and the interest during that time frame. And essentially once you then sell, the debt's cleared,
you've got a nice chunk of money in the bank and you're already in your new home. So that's what you call a bridging loan with no end debt.