Funding is an online lender that offers short-term property finance solutions like bridging loans. Borrowers looking to move into their next property before their existing property sells can benefit from competitive fixed loan rates and fast access to finance.
Review by our senior home loans writer Rebecca Pike.
Here are the key features and details you need to know about Funding's mortgage products.
| Feature | Details |
|---|---|
| Minimum deposit | Funding bridging loans require no more than 70% loan to value ratio (LVR). This means you can borrow up to 70% of the property value for a bridging loan. |
| No offset account | Because it is a short-term bridging loan, it does not offer features like offset accounts. |
| Rates | Funding offers "rate for risk" interest rates, which means they start at 7.95% but may be higher depending on your circumstances. The bridging loans have fixed rates only as the loan terms are fixed at 1–36 months. |
| Interest only repayments | You only repay the interest during the bridging loan term. When the term ends, you repay the principal loan amount plus accrued capitalised interest |
To apply for a Funding bridging loan, visit its website and get an express quote. You’ll go through conditional approval and then formal approval once the lender has done its due diligence in assessing your application.
📄 Information on existing property. The lender will use your existing property as security in case you are unable to repay the loan.
📄 Proof of identification. This covers your drivers’ license or passport.
📄 Proof of income. You must prove that you can meet your repayments.
Not everyone will need a bridging loan, but it’s helpful if you’re waiting for your home to sell. If you’ve found your dream home but haven’t sold your existing property yet, taking out a bridging loan can give you the flexibility to purchase early.
Consider how important it is that you purchase the property sooner as you will end up paying more in interest with the bridging loan. You also need to be confident that you will sell your existing property within the agreed-upon loan term.
There are always some risks involved with loans and bridging loans are no exception. The biggest risk is if you can't sell your property within the loan term. Your existing property will be used as security, so Funding can sell your home if you can't pay. This will also affect your credit score.
Like other lenders, Funding holds an Australian Credit Licence and is regulated by the Australian Securities and Investments Commission (ASIC) and must comply with the National Consumer Credit Protection Act.
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