With Bridging Loans, Buy Your Dream Home Today

by admin on August 23, 2013

When people begin shopping for a new home, they sometimes find themselves in an awkward predicament: they’ve found the home they want, but they still own the one they’re trying to leave. This also happens by surprise. Sometimes homeowners are caught unexpectedly by a home or opportunity they thought they could only dream of. Fortunately, in these situations, there’s something called a bridging loan that you can apply for with moneylender to help out. But what is a bridging loan and how can it help you?
A bridging loan gets its name by helping you move from where you are right now (your old home) to where you want to be (your new home). For this reason, bridging loans are also referred to as gap financing or a swing loan. It is different compared to a mortgage.
All the bridging loan actually does is provide you the funds to purchase your new home. After that, you are in charge of paying the mortgage and that of your own home. When your old home sells, the funds are used to pay off that mortgage and now you only have your new home to worry about (and any interest from the bridging loan). You can also use a bridging loan as some sort of debt consolidation. You can use the bridging loan to pay off your debts.
Bridging loans are also used by some renovators who don’t have long-term plans for the home. They simply need the financing to purchase it. Then, after renovations are complete, they’ll sell it and repay the loan. This also comes in handy for people buying a residence at auction.
Of course, when asking “What is a bridging loan and how can it help you?” it’s important to think about the risks too. You’ll want to make sure you’ve done all your research before accepting a bridging loan from a licensed money lender Singapore. You have to be supremely confident your old house will be moving soon. It will help you to move into your new home before your old one has sold. Is it for you? Ultimately that will depend on the home you currently own and the market you’re trying to sell it in.
licensed money lender

Differences between an Unsecured and Secured Loan

by admin on July 28, 2013

It is important to understand the differences between a secured and unsecured loan in order for you to make the right borrowing decisions. This article will highlight some of the major differences between a secured and unsecured cash loan Singapore.
To begin with, one must have a private asset to use as collateral for a secured loan while unsecured personal loans do not require any kind of collateral. Personal assets are meant to give the money lender some form of security in a secured loan arrangement. An example of a secured loan is a large business loan secured by a property such as a factory.
Borrowers can use their house, land and car to get a secured loan from a financial institution. The interest rates for a secured loan are relatively lower compared to that of an unsecured because of the collateral. Secured loans give the borrower an opportunity to borrow a lot of money but unsecured loans have very limited amounts.
It is difficult for a bank or any other lender to give out a lot of money without any form of security. Unsecured loans are only suitable if you want to borrow a very small amount of money and you must also be prepared to pay higher interest rates. The repayment period of a secured loan can be spread over a long period of time but unsecured loans such as payday loans have very tight timelines when it comes to repayment.
Property owners have an opportunity to get a secured loan even if their credit rating is very low but one must always meet the stipulated credit rating in order to be given an unsecured cash loan. Secured loans put borrowers in the risk of losing their assets to the lender in instances where they fail to repay the loan. The good thing with an unsecured loan is that the lender has no power to repossess your assets. Borrowers can lose their payment protection insurance in instance where they fail to repay an unsecured loan in time.