Relocation Loan
Ready to buy your new home but haven't sold your old one yet? Our relocation loan could let you buy now and sell later and make your move smoother.
What is it?
A relocation loan (also known as a bridging loan) is a short term, 12-month loan that helps you buy a second property while giving you time to sell your first one (even if you still have a mortgage on it). Found your dream home but need to sell your old one for the funds? This loan helps bridge the gap between buying a new home and finalising the sale of your current one.
Benefits of our relocation loan
Buy now, sell later
Snap up that dream property when you find it. Then take time to sell your current one later to help get the price you want. A relocation loan could help you to make timely offers at inspections and auctions!
Cover stamp duty & fees
You can even add upfront costs such as stamp duty and legal fees in your relocation loan if the value and equity in your current home is enough. It helps ease expenses.
Avoid the rent drain
If you time it well, you could avoid the costs of having to rent a home in the period between the sale of your current property and settlement of your new home.
At a glance
| Loan type | Standard Variable for Interest Only | |
| Total loan term | Up to 12 months | |
| Loan size | Minimum $10,000 |
|
| Repayment frequency | No repayments during the bridging period. The interest charges are capitalised over the term of the loan. | |
| Repayment type | Interest Only Capitalised | |
| Extra repayments | Yes | |
| Redraw extra repayments | No | |
| Increase loan | No |
Rates and fees
Interest rate
| Variable rate | Comparison rate |
|---|---|
| 8.78% p.a | 8.59% p.a |
Rate based on LVR+ up to 70%. Available for Owner Occupier purposes only for a period of 12 months. Not available for investment property purchases, debt consolidation or residential lending originated under family or company trusts.
Fees
| Fee | Cost |
|---|---|
| Lending establishment fee | $600 |
| Monthly loan account fee | $8 |
| Document processing fee | $100 |
| Loan discharge fee | $350 |
Other fees that might apply:
| Fee | Cost |
|---|---|
| Missed payment fee | $15 |
A relocation loan for life's big changes
"I found the home I want"
It’s a hot property market, timing is everything! A relocation loan could help you make a timely offer - and give you time to sell your current home.
"We need more space"
Need a bigger house for new arrivals? Or want more space for a blended family? A relocation loan could help you upgrade to a new home sooner and sell your old one later.
"We’d like to downsize"
Thinking of retiring or simplifying your life - and need time to sell your family home? A relocation loan could help you make the move to a more manageable home sooner.
How to apply
Make sure you're eligible
You need to be:
- An Australian citizen or permanent resident (over 18 years of age).
- A new or an existing home loan customer.
- An owner occupier buying a new home, or buying vacant land to build a new home using a building contractor.
Get in touch
Book a chat with our friendly home loans team at a time and place that suits you. They'll help guide you through the relocation loan process.
Things to think about
Buying a home
Selling a home
Understanding the market
Frequently asked questions
Generally, your loan needs to be paid off in 12 months as it’s a short-term loan. You can speak to your lender about options to suit your circumstances if you are unable to sell your property within the 12-month loan term. An extension may be subject to credit criteria.
The Detail
Conditions, credit criteria, fees and charges apply. Based on Bank of Melbourne’s credit criteria, residential lending is not available for Non-Australian resident borrowers. Interest rates subject to change. Before making a decision, it’s best to read the terms and conditions.
Loan Accounts – Charges for specific services and accounts (PDF 360KB)
This information is general in nature and has been prepared without taking your objectives, needs and overall financial situation into account. For this reason, you should consider the appropriateness of the information to your own circumstances and, if necessary, seek appropriate professional advice.