Bridging finance is just what it says, we have financial institutions who are willing to bridge your approved home loan to allow you to receive money within 24 hours, after you have signed all the necessary documentation at the attorneys who will be handling the bond registration.
This option allows our clients to receive an amount of up to 80% of the approved loan, before the bond registers. Some clients needs money urgently for emergencies or any other reason and Bridging Finance helps to receive your money earlier. As long as your loan application has been finally approved by one of the major banks or SA Home Loans, then we can help you to bridge the amount that you will need.
The bridging finance company will send you a formal quotation for the amount that you need to bridge, which will specify what your repayment will be, including the interest over the period of the bridge. The normal rate that applies is usually R1.00 per every R1000 per day.
Below is an example of how the interest is applied:
- Bridge Amount: R50 000
- Bridging Date: 20 August 2012
- Estimated date of bond registration: 20 September 2012
- Bridge Period: 31 days
- Interest: R1550
- Total Amount To Repay: R51 550
The bridged amount will be paid into your account directly within 24 hours after the correct documentation were received from the attorneys. It is of utmost importance that you inform your consultant beforehand if you would like to bridge, so that the arrangements can be made, before you go and sign at the attorneys.
Failure to do so, will cause your application to be delayed, as you will have to go and sign for a second time at the attorneys, which could have been avoided. If you need more info on bridging finance, please contact one of our friendly consultants to assist you directly.