Wondering what finance options you have when downsizing your home? Typically, our downsizer clients own their current home outright, or it has been some time since they’ve had to look into mortgage and finance options. Downsizers can also be asset-rich, but cash-poor and can be deterred from making a move due to the upfront payment or deposit required on their new purchase.
We spoke to Matt Collier from Five Financial about a few options perfectly suited to downsizers that make the transition simple and stress-free:
Single Security Bridging Loan
Ideal to purchase a new property before selling your current home, i.e. moving into a retirement village while the existing property remains on the market
- Suitable for owner-occupied purchases
- No monthly repayments, interest and charges are paid upon settlement
- Upfront fees $900–$1,900 + valuation fee (approx. $300)
- Loan term up to 12 months
- Loan amount range $300,000 – $8,000,000
- Maximum LVR: 80%
- Fast approval process
Downsizing & Superannuation Opportunity
Designed for clients aged 55 and over who are selling their family home
- If the home has been owned for 10+ years, each individual can contribute up to $300,000 into superannuation
- These contributions are in addition to existing super caps
- For retirees, earnings within super are tax-free
- This can deliver significant long-term benefits, especially when planning for retirement
Standard Bridging Loan
Commonly used when transitioning from one owner-occupied home to another
- Upfront fees approx. $900
- Loan term up to 12 months
- Peak debt LVR up to 80%
- Must be able to service the end debt, if applicable
If you want more information on downsizing, click here to view our Guide to Downsizing and contact our team to discuss your options, we are ready when you are. Call 02 9634 3444.