Bridging Finance is taken out when there is an overlap between the sale of one property and the purchase of another.

For Example:

• $450,000 Sale of Property 1 settles Jan 2007- Current Lan $300k.
• $550,000 Purchase of new property settles: Dec 2006

There is a short term finance required for 1 month between purchase of property 2 and sale of property 1. Total of $550,000 plus costs is needed to purchase new property before the funds from the sale can be contributed back.

With Bridging Finance there is alot that can awry. With Penalty Interest payable if settlements dates are extended.