As a promoter, you have already bought a house before. So you know a bit about how a mortgage application works. Yet it is a whole new experience with many questions that may arise. We have listed the most frequently asked questions, especially for transfer students.
Can I take my old mortgage with me?
If your old mortgage still fits well with your current situation and your future home, you can often take it with you. You actually take out a new mortgage, but you take your current mortgage interest with you.
Sometimes it is more favorable to take out a new mortgage because the mortgage interest is lower or because the conditions are more favorable elsewhere. Get good advice on all options from a mortgage advisor.
Can I Pay the Buyer Costs From the Equity?
If you sell your house with sufficient equity, you can use this equity to pay the costs of the buyer for the new home. We can assist you to access your equity and will guide you in the step to utilise your equity to maximise your profit.
What Else Can I Do With The Equity?
If you sell your house with equity, you will have to deal with the additional loan scheme. This arrangement means that, in order to be entitled to full mortgage interest deduction, you must use your equity for your new home. So you can bring in the equity in your mortgage, so that your monthly costs fall, or use the equity for, for example, a renovation.
Sell First or Buy First?
If you want to know exactly what your budget is for your new home, it is wise to first sell your current home. This way you also avoid double housing costs. In practice, it is also common nowadays for people who first buy a new home before putting their old home up for sale. You often have to deal with a bridging loan.
What is a Bridging Loan?
A bridging loan is necessary if the equity of your current home has not yet been released and you want to have it when you buy your new home. You then temporarily borrow the amount that will be released from the sale of your current home, so you don’t have to wait for it to be sold and paid.
What will happen to Home Insurance?
It is often possible to take home insurance with you. You pass on your new address to the insurer, who determines whether your premium will rise, fall, or remain the same due to, among other things, the surface, and location of the house. A move can also be a good time to compare whether you are not cheaper with another insurer.
Are you looking for your next home or do you already have one in mind? Then come and visit the Best Mortgage Broker Melbourne without any obligation. Our advisors are happy to inform you about the possibilities.