How to buy a property before finalising the sale of another? This type of transaction can be a source of stress for those who wish to finance their new home through the resale of their current property. However, there are solutions, such as the bridging loan!

Financing solutions (Cascade Sales, Bridging Loans)

There are several options for carrying out a buy-back.

• The first of these is cascade sellingThis solution is the one most often recommended to buyers, as long as it is possible. This solution is the one most often recommended to buyers, as long as it is possible.
• But in the case where playing with dates is not feasible, thee loan relay may be another solution. Often of short duration (between 12 and 24 months), this variable-rate loan allows the link between two property loans. The subscriber will then only pay the interest every month.

If your project allows it, the bank can also buy back your loan and integrate it into your financing plan, in order to reduce your monthly expenses. Finally, in some cases, deferred repayment can be offered to buyers.

Conditions to be met

The right valuation of your property is a crucial step, as it can avoid many setbacks later on. Several estimates drawn up by professionals are very useful for setting the "fairest" selling price. The amount of the sale will be integrated into the overall financing plan.
It should be noted that the bank usually applies a 10% discount to the price of the property, hence the need to obtain the most reliable estimate.

In addition, if the price determined does not reflect the market price, the property may not be taken up in time, with consequences for the financing of your new property.

These solutions are excellent tools for financing a new real estate project, provided that the amounts and terms of financing are carefully studied beforehand.   
For personalised advice, contact an expert atHomeFinance who will analyse your project and funding possibilities with you.