How to safely secure a dream home before selling ours? Finance risks?

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bloodfreeman1080

New Member
My wife and I identified a property in our preferred location that presents a significant opportunity. What is the most effective method to secure it while minimizing risks?

We currently reside in our existing property and intend to sell it. Given that it should sell quickly, we are not considering including a subject to sale condition, as that would likely result in our offer being declined. We are therefore evaluating a subject to finance clause with a 90-daay settlement period.

After accounting for expenses such as stamp duty, we estimate having approximately $250,000 available to contribute toward the new property.

Is there a risk that our financing for the new property could be declined?
 
Thank you. I have limited knowledge regarding bridging loans. I am meeting with my broker tomorrow; should any complications arise, I will contact you. My primary concern involves my wife, who is on maternity leave until April of next year. While she has a confirmed full time position to return to, it is likely that she will not resume full time hours.
 
This happened to me once. I bought a new home before selling my old one. The new place had a 16 week settlement.

We looked into a bridging loan. It would have cost around $20,000. Instead, we negotiated the interest rate down a!bit on the new purchase and went past the settlement date. There’s usually an extra two week grace period.

In our case, delaying would have cost about $5,000 in late fees if they charged us. The bridging loan would have been much more expensive. Luckily, we didn’t need either option in the end. It would have been money wasted.
 
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