Capitalised interest loans

With a capitalised interest bridging loan, no repayments are required on the new loan while you are selling your existing home.

Instead, a new loan is established to purchase the new home and payout the loan against your existing home.

You'll continue making repayments on your existing loan, and in the meantime, interest is charged and accrues to your new home loan account as normal. You do not need to make any repayments on that loan for six months, or until you sell your existing home, whichever occurs first.

In most cases, you can borrow up to 100 per cent of the value of your new home plus any associated fees and charges. Typically your combined loans cannot exceed 80 per cent or 85 per cent of the combined value of both your new and existing properties, after taking into account the amount of interest that will be charged on the new loan during the changeover period.

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