Relocation Loans

Make the strategic step between home ownership.

Relocation loans give the financial support needed to facilitate a new property purchase when you already have a mortgage.

Relocation loans are usually:

  • Bridging finance.
  • Security substitution.

Bridging finance

Bridging finance is a loan that literally builds a bridge between your existing mortgage and a new mortgage over a new property. Having a bridging loan means having two home loans for a short interim period between owning two homes.

Loan features/structure

How it helps you

Interest-only repayments
You don’t pay down the loan until the other property settles and the sale proceeds are available to pay it down through principal repayments
Maximum term is usually 6-12 months
Covers the period of buying a new property and selling the existing property
Loan amount is usually calculated as the peak debt being the sum of the new purchase price + current mortgage balance = bridging loan amount
Indicates what you can afford when making offers on a new property

Key points about bridging loans

  • Must be with current lender to leverage the equity in your existing mortgage.
  • Required equity is generally 20-40% of your own equity (including buying costs).
  • Not all lenders offer bridging finance.

The Get Real Finance team will guide you to evaluate your approach to best empower and support you.

Our regular check-ins with you about what's in your plans, means we can assess if your current lender and current finance commitments (debt) will be best positioned to support your potential plans. We can switch up your arrangements to remove any barriers that might be a pain (or just life admin you don’t need) so you can make the move when inspiration and opportunity strikes.

Security substitutions

A security substitution or security swap (also known as loan portability) is keeping your existing home loan and substituting/swapping the security attached i.e. the real property. A range of benefits might fit your circumstances—particularly if you have a fixed loan with a low interest rate. Generally, there’s less stress attached to the finance position including the impact on your cash flow when compared to a bridging loan that requires interest-only payments while selling your existing home.

Key considerations about using security substitutions/swaps

Loan features/structure

Things to think about

Fixed-rate home loans
You might want to keep the fixed rate you have on your existing mortgage/home loan
Break costs
Your mortgage might have a ‘break cost’ or ‘early repayment cost’. Using a security substitution/swap could help you avoid those costs
Same or less loan amount
If you already have a deal to buy/sell on both properties, then your costs are already known
Deposit bond
Potential to access your equity to pay the deposit on the new property

Key points about lending:

  • Not all lenders/products offer security substitutions/swaps/portability.
  • Property settlements must be synchronised (i.e. no lapse in sale proceeds).
  • Name on home loan/property title must be the same.

The Get Real Finance team will guide you to evaluate your approach to best support you.