A bridging loan can provide short-term finance to help you purchase a new property before the sale of your existing property has settled.
It gives you the flexibility to buy first and sell afterwards, with the intention of paying down the bridging loan when your existing property sells.
Talk to us about your plans. We can discuss how bridging finance works, your borrowing capacity and the options available to you.
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When you buy your next property before selling your current one, you may temporarily need finance for both properties.
A bridging loan provides short-term finance to cover the purchase of your new property while you arrange the sale of your existing property. The amount you owe may therefore be higher during the bridging period than once your current property is sold.
When your existing property sells, you generally use the sale proceeds to reduce the bridging loan. Your remaining debt then becomes the ongoing loan secured against your new property, subject to the lender’s terms.
The length of the bridging period and how the loan is structured can vary between lenders. So it’s important you understand how the arrangement will work before you commit to buying your next property.
The amount you borrow with bridging finance depends on your financial circumstances and the value in debt associated with both properties.
Lenders may consider:
The amount you could borrow can vary between lenders. We’ll help you understand your borrowing capacity and compare bridging loan options based on your circumstances.
Bridging finance is designed to be temporary, so having a realistic plan for selling your existing property is important.
If the sale takes longer than expected, you may need to carry the additional debt for longer, which can increase the cost of the loan.
We’ll help you understand the bridging period and the costs involved so you can plan your next move with confidence.
Depending on the lender and loan structure, you may pay interest-only repayments or have interest added to your loan balance during the bridging period. The longer you need bridging finance, the more interest you pay. You may also face other loan-related fees.
When your existing property sells, you generally use the net sale proceeds to repay the bridging loan, subject to the lender’s requirements.
If you still need finance after the sale, the remaining amount becomes your ongoing home loan, sometimes called the end debt.
The exact structure will depend on your circumstances and the lender you choose.
Buying and selling at the same time can involve a lot of moving parts, but we’re here to help.
We can discuss your circumstances, your borrowing capacity and whether bridging finance could be suitable for your next move.
We’re a proud Perth-based & people-first company. We listen carefully and use our deep market knowledge to personalise mortgage options that suit your future. From first-time buyers to self-employed borrowers and property investors, we bring clarity, confidence, and smarter lending solutions to every step of the process.
