Short Term Property Loans
Sometimes you might need finance urgently, and this is where a short-term property loan can be invaluable. Short term property loans are approved quickly and funds are disbursed quickly. Funding delays when seeking a traditional property loan or mortgage from a bank or similar financial institution can result in loss of deposit and other losses if a property settlement or sale of another property does not occur in a timely manner. Short term property loans are designed to mitigate these risks with the settlement of the loan occurring in days as opposed to weeks or even months.
What is a Short-Term Property Loan?
Short-term property loans are secured against assets and are used for a specific short-term purpose that is urgent in nature – a bridging loan is an example of this. They are considerably more expensive than traditional mortgage loans as they carry short time frames for repayment and this represents a higher level of risk to the lender. They incur higher interest rates.
Short-term property loans can be useful for:
- Capitalising on an opportunity that is time-sensitive to facilitate an urgent settlement
- Locking in the purchase of a property when the collateral property has yet to sell
- Settle an urgent loan to allow time to wait for approval and settlement of a cheaper loan
- “Non-conforming” clients who are not likely to be viewed favourably by traditional lending institutions
- Funding shortfall in a property settlement
- Paying builders/contractors
- Purchase of an investment property
This is where Universal Finance is an ideal option for you.
How Can Universal Finance Help?
Universal Finance is a South Australian-based finance company. As experts in our industry and with decades of experience, we are perfectly positioned to provide you with premium short-term property loans.
With Universal Finance, you can benefit directly from our expertise, experience, highly competitive interest rates, and comprehensive network of lenders to guarantee you get the loan solution you need in a timely manner.
Our application process for short-term property loans is simple and fast. Upon approval of your loan, you will receive the funds in your account quickly. We also customise our repayment plans to suit your individual circumstances and your budget.
Frequently Asked Questions
What is the difference between a short term and long-term loan?
A short-term loan facilitates the urgent need for a loan to cover funding delays from longer term loans for property settlements and other time sensitive opportunities. Short-term loans carry much higher interest than long-term loans due to the short time frame given for repayment. Short-term loans are intended only to bridge the gap between financial approval from your lender for a long-term property loan which carries a much lower interest rate.
What is an example of a short-term loan?
The most common form of short-term loan is known as a bridging loan. Property bridging loans are taken to cover the settlement of a property prior to the long-term finance being approved. These are required in situations where a new property is being purchased but the old property has not yet sold or for funding a shortfall in a property investment. Like all short-term loans, bridging loans attract a much higher interest rate than a regular mortgage or a long-term loan specifically due to the short nature of the finance and the fast approval process, which attracts a higher level of risk for the lender.
What properties do you accept as security?
Short-term property loans can be secured by both residential and commercial properties being used as collateral. You can use the equity you have in any property that is in your name, either fully or partially, to secure a short-term loan. Using property as collateral on a short-term loan is the quickest and easiest way for the loan to be approved in a short timeframe. As the nature of a short-term loan is usually to be repaid in six months to a year from the date of dispersal, using property as security lessens the risk for the lender and gets the finance you need to you in the quickest possible way.
Will I be able to get a short-term loan quickly?
The idea of a short-term loan is that it is a type of finance that is used to cover a shortfall in an urgent situation. Short-term loans are approved much quicker than longer term loans and can be dispersed into your account in a number of days. By utilising a short-term property loan, you can avoid loss of deposits on home or investment property purchases to adhere to settlement terms as per your contract, while you are waiting for your long-term finance to be approved and dispersed.
Why should I consider Universal Finance for short term finance?
At Universal Finance, we are experts in short-term lending. We understand the necessity of fast and professional service in order to secure the finance you need in the quickest possible timeframe. We offer decades of experience and our company is perfectly positioned to offer you the kind of short-term loan you need to cover the shortfalls in property purchases. Our interest rates are competitive, and we have a comprehensive range of lenders which guarantees you that you will find the most suitable loan solution for you in the timeliest manner.
Choose Universal Finance TODAY
Contact us today to discuss your requirements for a short-term property loan and discover how we can provide the solution that you seek.