L o a n W i z e – W i z e U p t o y o u r B e s t F i n a n c i a l D e c i s i o n

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Fact Sheet: Go Between Loan

Buy Now, Sell Later!

If you are considering upgrading your property, and are looking at new homes before you sell your existing one, then it is good to know there is a loan product to help you if you find that perfect property NOW!

If you find that perfect home now, and you haven’t sold your own home, how do you afford to buy it now, without selling your existing home? What if you know you can get it for a great price now, and you don’t want to miss out on buying it now.

Or, what if you are moving to another city and want to move straight into your new home, rather than waiting until you existing home has sold?

The procedure is relatively simple

A Go-Between Loan offers you an easy way to purchase a new home before you sell your existing one. Rather than needing to make two sets of loan repayments while you are selling your existing home, no repayments are required on the new loan for the Go – Between period.

How Does this Work?

• A new loan is established to purchase the new home and payout (refinance) your original loan against your existing home.

• You continue making repayments on your existing loan.

• In the meantime, interest is charged to your new home loan account as normal.

• You do not need to make any repayments on that loan for 6 months, or until you sell your existing home, whichever occurs first.

Thats great, but how can I borrow that much?

• You can borrow up to 100% of the new property plus any associated fees and charges. Your combined loans cannot exceed 80% of the combined value of both of your properties, after taking into account the amount of interest that will be charged on the new loan during the Go-Between Period.

• Assessment of your loan is based on the repayment that you will be required to pay once you have sold your existing home. So your income only needs to be enough to show you can pay the reduced loan amount once your existing home has sold.

L o a n W i z e – W i z e U p t o y o u r B e s t F i n a n c i a l D e c i s i o n

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Your new repayment amount is will be based on:

• The Loan Amount required to purchase your new home; plus

• Interest that accumulated on the new loan during the Go-Between period; less

• The agreed amount by which the new loan can be reduced upon the sale of the existing property.

What if I have a loan with another lending institution?

You will need to refinance this loan to the lender offering the Go-Between Loan during the settlement of the Go-Between loan. This lender will then have both properties as security for the total loan amount applicable for your new home and your existing home.

What happens when my existing home is sold?

Once your existing home is sold, you must first use the funds to pay out your existing home loan. Then you must pay sufficient funds into your new loan, so that the loan reduces to the amount specified in your Go-Between loan Contract.

What if I don’t sell my existing home in the Go-Between period?

Once the Go-Between period ends and the existing home has not been sold, you will need to start making repayments on the new home loan in addition to repayment you have been making on the existing home loan.

Having a Professional Lending Specialist from Loan Wize provide you with a formal loan approval will ensure that you don’t miss out on your dream home.

If you would like more Details on Go-Between Loans or would like to speak to a Professional Mortgage Specialist about a pre approval for a home loan based on your personal circumstances, please phone Loan Wize for an appointment.