As its name suggests, bridging loan is a bridge that closes the gap between your buying and selling of the previous property. It can also be utilised to finance an item up for auction, and you need immediate money.
Bridging loans Johannesburg is a short term loan that you can pay off in either twelve or twenty four months. Through bridging loan you get the money immediately till you get your permanent finance back or till you sell your previous property.
Why should I use Bridging Finance?
Bridging finance can be used for multiple reasons keeping in mind it’s a short term loan plan. Initially, bridging loan Johannesburg wasn’t much popular. However, now we see a lot of people and SMEs looking for bridge loans.
It got popular because of it being a short term loan, and unlike bank loans, documents required weren’t too much. In an average case you can get the loan within a week or two.
People look for convenience over anything, so it attracted them.
How does it work?
Bridging finance is easy to get, you get the cash in a small period. Bridging loan Johannesburg lends you as much as about 75% of the value of your property.
You can put anything else than your property to borrow as well. The bridging loans in terms of value is more than what you can get from the bank.
Lenders are also safe while giving out loans, as they give out bridge loans in the basis of affordability and not on income. You must have an exit if you want to get this loan.
Many bridging loan companies are now in the market, and doing their best to give you the vest value for your property, etc.
Pros and Cons in Bridging loans Johannesburg
Let’s take a look at some of the pros and cons involved in bridging loans Johannesburg.
- You get a loan in a short period because the application takes no more than 14 days to be completed.
- The loan can be taken at a very low interest rate as the market is getting competitive day by day.
- Mostly there are no repayments.
- You can get a loan for the full value of property.
- Mortgages are still less expensive than bridge loans. For property transactions, people still seek for a mortgage instead of bridge loan.
- Your exit should be viable. If you are not able to repay the amount by the end of the given time, you are going to be in deep trouble.
Other than Bridging loans Johannesburg, here are some of the other services that we provide.
Jewellery Buyers – this includes all types of jewels. There are many diamond buyers, and gold buyers as well.
Luxury watch buyers – get the best price for your luxury watch, better than anyone.
Loan against my car – You can also pawn car, and get a good value for it while borrowing.