Did you know that you can use property bridging finance to bridge the gap between buying your new property and selling your current home?

At Transafrica Bridging Finance we offer sellers the opportunity to borrow up to 70% of their sale proceeds while they wait for their property to be transferred to the new owner. This bridging finance gives sellers cash on hand to fund their next move.

If your loan application is approved, you can borrow at our unbeatable rate of 0.148% per day (which translates to just R1.48 per R1,000.00 per day). This gives you quick access to funds when you need them most, whether you need the cash on hand to pay your movers, or you need a deposit to buy your next house. We understand that most applications are time-sensitive, and 75% of all applications are paid out within 48 hours.

Our financial solutions are tailored to meet your immediate needs, making your financial journey smoother and more manageable.

How residential property bridging finance can help you

How many stories have you heard where someone has sold their house, but has missed out on purchasing their new home as there have been delays in the transfer process? Whether it is a result of a backlog at the Deeds Office, or the buyer’s bond taking longer than expected to be registered, there are times when the seller doesn’t receive the proceeds of the sale of their home in time to secure their next property.

This is where residential property bridging finance, a short-term loan designed to bridge the financial gap between the sale of an existing property and the purchase of a new one, comes into play.

As the saying goes, “timing is everything” and this is especially true in property. The property transfer process in South Africa can typically take between 8 to 12 weeks , but this timeframe can stretch out depending on a number of factors. By utilising bridging finance, you are able to access the necessary funds more quickly, because these short-term loans are designed to be fast-tracked, providing you with faster access to capital.

This can really help you, particularly in a competitive buyers’ real estate market, where being able to move quickly can make the difference between securing your dream home and missing out.

A big benefit of bridging finance is that it can help you to avoid the costs of moving into temporary accommodation between selling your home and buying a new one. By providing cash to use as a deposit for the purchase of a new home, while you go through the transfer process on your previous home, you’ll be able to settle into your new home without disruption.

It is also useful in situations where the buyer wants to take early occupation of your existing home. Sometimes a buyer will stipulate early occupation as part of their offer to purchase. This can prove challenging to the seller. It could be that you are unable to finance alternative accommodation and storage for your home contents prior to receiving the proceeds of the sale of your home. By accessing funds through bridging finance, you can cover a few months’ rent and storage for your home contents, allowing you to accept the offer and receive occupational rent as well. 

Bridging finance can also assist you during complex property transactions. Sometimes situations like inheritance issues, divorce settlements, or sharing the proceeds from investment properties between shareholders can cause delays in payout of the proceeds of a property sale. Accessing a bridging loan can help you to manage the extended periods between disbursement of funds with greater ease.

 [LG1]Link to blog: How Long Does a Property Transfer Take in South Africa?

 [LG2]Link to the Bridging Finance Page