Today, 40% of acquirers simultaneously conduct a purchase and resale transaction, and in 25% of cases, they use a bridge loan. However, certain institutions no longer accept files with bridging loan or encourage people to sell before buying a new property, this to avoid the excesses of the bridge loan. ALD offers an optimized solution through the Buy / Resale loan to help borrowers acquire property when they are already homeowners.
Can you buy without selling?
Banks are very cautious in granting a bridging loan allowing an individual to finance a new purchase before selling his property. They tend to downgrade the valuation of assets. Their concerns about the evolution of the residential market push them to reduce the amount of the bridge loan granted compared to the amount of expertise which often prevents the borrowers to invest again (the banks take, in general, 70% of the value of the property for sale).
ALD Solution: the Buy-Resale Loan
To simplify and secure this operation, ALD offers customers another solution: the Buy Resale credit. A single credit that covers the entire project: takeover of the old loan and financing of the new property (100% of the amount of the acquisition, agency commission and, possibly, notary fees, included). The client is 2 years old to sell his property in the best possible conditions. Once the sale is made the customer has the opportunity to keep up to 20% of the amount of the sale or reinject the entire sale in its loan which allows it to either reduce the duration or the monthly payment.
Advantage of Buy-Resale
Thanks to the purchase-resale loan, the client benefits from the classic home loan rate, which may be lower than the rate of the dry relay loan, which allows a gain on the total cost of interest.
During early repayment, the borrower is totally exempt from penalties regardless of the amount of contribution injected. In addition, by merging two loans into one, the client pays the loan guarantee fee only once.