Bridging finance
Short term finance that bridges the gap between buying and selling. It lets you buy your next home before your current one sells or settle a commercial purchase before a sale or refinance comes through. We structure it around a clear exit so the bridge has an end.
Common uses
Buy before you sell
Secure your next home without waiting for your current one to sell.
Building a new home
Fund the build while you still live in your current home and sell it once you move.
Commercial settlements
Settle a commercial purchase while a sale, refinance or other funds are still on the way.
Buying at auction
Bid with confidence when your existing property hasn't sold yet.
How a credit team reads a bridging loan
A bridging loan is only as good as its exit. Credit wants to see how the loan will be repaid and that the numbers still work if the sale takes longer or the price comes in lower than hoped.
Peak debt
This is the total you owe while you hold both properties. It's your existing loan plus the new purchase and costs. Lenders check it against the combined value of both properties.
End debt
This is what's left once your current property sells. Lenders assess whether you can afford this ongoing loan just like a standard application.
The sale price
Lenders use a realistic estimate of what your current property will sell for and usually back it with a valuation. An optimistic sale price is one of the most common reasons for a decline.
The bridging period
Most lenders give you a set time to sell, usually 6 to 12 months for an established home and longer if you're building. A plan to sell within that window matters.
Interest while you bridge
Many lenders add the interest on the bridging portion to the loan instead of asking for repayments. That helps your cash flow but it does increase the amount owed when the sale settles. Some loans let you prepay or capitalise the interest, so there are no monthly repayments during the term.
Commercial exits
For business purposes, credit looks at the exit just as closely. That could be a signed contract of sale, an approved refinance or funds due from elsewhere. Non-bank lenders and private credit funds often suit these deals.
Four steps, one point of contact
Tell us the plan
What you are trying to do and the approximate amount.
Get a straight answer
Whether it is fundable and which lenders suit it.
Compare the options
Rates, structure, fees and conditions side by side.
Through to settlement
Application prepared, submitted and managed.
Why bridging loans get declined and what to fix first
From the credit side bridging loans usually fall over on the exit or the numbers.
- An optimistic sale price
Get an agent's appraisal and look at recent sales before you set your expectations. Lenders will check them too.
- End debt you can't service
If the loan left after the sale is too big for your income, the bridge won't be approved. Work out the end debt first.
- No plan for a slow sale
Know what happens if the property takes longer to sell than expected. Lenders want to see that you've thought about it.
- Too little equity
The combined LVR across both properties has to fit the lender's limit. A bigger deposit or a lower purchase price can make the difference.
- A vague commercial exit
Expecting funds soon isn't an exit. A signed contract, a refinance approval or other firm evidence is.
What is a bridging loan?
It's a short term loan that covers the gap between buying a new property and selling an existing one. It can also bridge a commercial settlement until other funds arrive.
Do I make repayments during the bridging period?
It depends on the lender. Many add the interest on the bridging portion to the loan so you only repay your ongoing loan until the sale settles.
How long can a bridging loan run?
Usually 6 to 12 months for an established home and longer if you're building. Commercial bridging terms vary by lender and by deal.
What happens if my property doesn't sell in time?
Talk to your lender early. Some will extend the bridging period while others may want you to adjust the price or refinance. Planning for a slower sale from the start helps.
Is bridging finance more expensive than a normal loan?
The rate on home bridging from a bank can be similar to a standard loan but interest builds up while you hold two properties. Commercial and private bridging usually costs more. We'll show you the full cost before you commit.
Tell us what you need.
No documents needed to start. Call (02) 7822 0255 or 0481 877 727, or answer a few quick questions.