If you’re looking for a creative way to overcome being locked out of the property market by rising prices, buying a house with a group of family or friends may be a solution. It can also be a minefield though, so here’s how to avoid a blast.

While the excitement of banding together in such a life-changing moment can put everyone on a bit of a high, you need to plan for situations in which things might go wrong.

When selling one property and purchasing another, the funds from the sale may not be available in time to use for the purchase deposit. There are typically two options in this scenario: a bridging loan or a deposit bond.

Bridging loan

A bridging loan is a short-term home loan designed to allow you to initiate the purchase of a property before you have sold your previous one.

Loan terms are often between six and 12 months and bridging loans generally have a higher interest rate than traditional home loans.

Whether you are buying your first home, purchasing an investment property, refinancing an existing property or simply looking to switch your current home loan and get a better rate, Arafura Finance Brokers tailor our service to your own needs.

With all the professionals under one roof, you’ll be guided smoothly through the entire process to help you find the right home loan.

If you’re on the hunt for a new home, the term ‘borrowing capacity’ is something you’ll want to familiarise yourself with.

It’s a crucial factor in the world of home loans, so let’s dive into what it means, how lenders determine it, and how it affects your finance application.

What is Borrowing Capacity?

Essentially, it is the maximum loan amount a lender is willing to offer based on your finances. 

It’s the key to your home loan application, determining the highest funds available for your property purchase.

Why choose a business finance broker? 

One of the biggest challenges of owning a business is ensuring you have access to capital to run and grow your business. Whether unexpected costs arise, or you need funding to purchase assets or invest in growth, a business finance broker will find the right solution to help you achieve your goals

An MFAA finance broker will: