Intermediate financing
When you want to buy a new home before you’ve sold your old one.
This is how we help you:
Fill in the application form
It only takes a few minutes and is completely
free and non-binding for you.
We talk to the banks
Your advisor will talk to our partners and find the
best solution for you.
Receive a non-binding offer
Once we've landed the solution we
most believe in, we'll contact you for a
no-obligation quote.
Security in the home you are going to sell
What is intermediate financing?
You often need interim financing when you are going to buy a new home before you have sold the old one. Interim financing is capital you have left over in the home you are going to sell.
Many people choose to buy their dream home before they have sold their current home, others may not be able to sell the home as easily as they had thought. This leaves you with two homes for a short period of time. In that case, we can help you with a so-called bridging loan, which comes in addition to any loan on your existing home.
The brigde financing is installment-free, so that the financial burden does not become too great. The most common is that you get bridge financing with a term of 6 months, where you only pay interest on this loan. If you have not been able to sell within 6 months, the bridge financing will be extended.
How long can you have bridging finance?
Bridge financing/intermediate financing usually has a term of up to six months, with the possibility of a few months’ extension. This means that you can own two homes for up to approx. half a year.
When you or the broker receive the settlement for the home you have sold, the bridge loan is paid back to the bank. On the new ordinary home loan, the bank receives security in the new home.
Having to live with two homes initially sounds prohibitively expensive. If, for example, the new home is bought for four million, and the old one has a loan of three million, you have a debt of seven million in this phase. But the costs don’t have to be as high as it might first sound, as the bridging loan is interest-free.
If the loan on an existing home has collateral within 60%, this loan can also be made installment-free during the sale period.
The cost of the bridge loan will therefore not overturn the load, even if you have a large loan during this period. It is what you ultimately get to sell your home for, which has the most to say for the economy going forward.
New mortgage before you sell your old home?
If you want to buy a new home before you’ve sold your old one, you’ll need interim financing. We calculate how much money you can borrow in advance in an existing home. You can borrow up to 90% of the value per property. This also applies to the home you already own, but are going to sell. So you cannot count on being able to borrow 100% of your saved value/capital.
Example: The value of the home is 6 million and the mortgage on it today is 3 million. You can then have a maximum loan + intermediate financing within 90% of the value, which is then 5.4 million (6 million x 90%). You already have 3,
million in mortgages and can get an extra 2.4 million in interim financing.
When is interim financing relevant?
- When you want to buy a new home before selling the one you live in now
- When you have sold a home and are going to buy a new home, but have not yet received settlement for the sold home. Some people choose to postpone the takeover for quite some time so that they have plenty of time to find a new home.
How much can you get in bridging finance?
→ The appraisal, valuation or sales price of your current home is used as the basis for calculating how much you can get in interim financing, then existing mortgage and brokerage costs are deducted.
→ Total debt and security must then be less than 90% of the total value of both properties.
→ If you have already sold your home but have not handed it over to the new owner before you take possession of your new home, the bank can charge up to 100% of the value of the home. This means that you can borrow 100% of your tied-up equity, minus the current loan and broker’s cost.
Totalbeløp
Kostnad
Etabl.gebyr
Termingebyr
Effektiv rente
This is how we help you:
Fill in the application form
It only takes a few minutes and is completely
free and non-binding for you.
We talk to the banks
Your advisor will talk to our partners and find the
best solution for you.
Receive a non-binding offer
Once we've landed the solution we
most believe in, we'll contact you for a
no-obligation quote.
we help you from a to z with bridging finance
If you already own a home, we can help you estimate its value, and assist you with tips on a skilled estate agent in your area. For the fastest possible processing, please send us your latest tax return, recent payslip, valuation, FINN code and any other relevant information. other relevant documentation.
Free and fast case management
With us, you will be assigned a dedicated advisor who will help you every step of the way. After
a pleasant conversation with you, we map out your financial situation.
FAQ - Frequently asked mortgage questions
What does interim financing cost?
Interim financing is usually a little more expensive than a normal mortgage, but you are only charged for interest on this loan during the period you have it. As soon as you have received a settlement for the sale of your old home, the interim financing loan is repaid.
What is intermediate financing housing?
Interim financing is an additional loan during the period when you possibly own two homes at the same time. The loan is secured in both homes.
How to calculate interim financing?
Interim financing is used, for example, in the period from when you have bought a home, until you have sold your own home. Choose whether to count on the number of days, weeks or months. You then enter the interest rate, length and establishment fee.
How does interim financing work?
Interim financing is a mortgage with security in the home you are going to sell, i.e. the one you are moving from. You then get to move the equity that is locked in the home to the new home you buy – before you have sold your old one. Usually, the interim financing loan is interest-free and has a term of up to 6 months.
How much can you get in interim financing?
You can get up to 90% of the vacant value of both homes minus existing debt, sales costs and expected accrued interest. Therefore; If you have a home worth 5 million with 3 million in debt and buy a new home for 5 million, you can offer security for a total of 10 million. 90% of this is 9 million minus debt of 3 million and sales costs + purchase costs, approximately 250,000. This leaves about 6,750,000 that you can get in maximum interim financing. This is a very simplified calculation, but a good indicator.
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