Many borrowers will look to upgrade or downsize their residence at some stage during their lifetime, and relocation loans can be particularly helpful.
Relocation loans can be considered where a borrower already has an existing loan on a property, the property has been sold, and the borrower has purchased a new property. Their intention is to "transfer" the debt to a new dwelling with minimal disruption to their finacial situation.
The lenders are generally looking for simultaneous settlements, or settlements within a very short period of time. In these instances the lender will agree to transfer the existing loan to the new security property, for a set cost, with a lesser, equal or higher loan amount. In most cases the borrower will need to provide up to date personal and financial information at the application stage before the lender will approve the transfer of the loan.
Features of Relocation loans are:
Up to date personal and financial details are normally required
The bank will normally requalify the borrower for the loan
The loan will have to be approved within the lender's current credit criteria
