You do not have to rush a sale
Why not just sell first?
Selling under time pressure tends to cost you. Bridging lets you sell on a sensible timeline rather than accepting the first offer because you have nowhere to go.
BRIDGING FINANCE
When you need to buy before you sell
Bridging finance covers the overlap between the new purchase and the sale of your existing home.
IN SHORT
A bridging loan funds two properties for a short window
If you find the right property before your current one has sold, bridging finance lets you proceed rather than lose it. The lender funds the new purchase while your existing home is still mortgaged, then the sale proceeds pay down the combined balance.
Lenders describe the total borrowing during the overlap as peak debt, and what remains after the sale as end debt. The critical test is whether you can service the end debt — that is the loan you are left with.
Bridging periods are short, commonly six to twelve months for a property you already own. The main risk is straightforward: a sale that takes longer or achieves less than expected.
WHY IT HELPS
Why people use it
One move instead of two
Can you avoid renting in between?
Without bridging, many households sell, rent, then buy — with two moves, storage, and a lease in the middle. Bridging usually avoids all of that.
Speed when it counts
What if the right property appears now?
Good properties do not wait for your settlement timetable. Bridging lets you act when one comes up rather than watching it go.
HOW IT WORKS
How the numbers are put together
The lender works out peak debt — your existing loan, the new purchase price and the costs — and then the end debt once an expected sale price is applied. Interest during the bridging period is often capitalised rather than paid monthly.
- Peak debt is assessed against the combined value of both properties
- End debt is what you must be able to service long term
- Interest is frequently added to the balance during the bridging period
- A realistic sale estimate matters more here than in almost any other loan
- Some lenders require the existing property to be listed, or under contract
IS IT RIGHT FOR YOU
Bridging finance in the real world
This tends to suit you if
- You have substantial equity — which is what makes the peak debt acceptable to a lender.
- Your property should sell readily — a standard home in an active market carries less timing risk.
- You can service the end debt — comfortably, on your ordinary income.
- The purchase is genuinely time-critical — and waiting would mean losing it.
Worth weighing up
- A slow sale is expensive — capitalised interest compounds on a large balance.
- An optimistic price estimate hurts — a shortfall lands directly on your end debt.
- You are exposed to two properties — including rates, insurance and upkeep on both.
- Not every lender offers it — and policies differ on term, listing requirements and structure.
How working with us actually goes
Step 1
We start with a conversation, not an application
Step 2
We work out what you can borrow and what it costs
Step 3
We prepare the application and deal with the lender
Step 4
We stay across the loan long after settlement
COMMON QUESTIONS
Questions we get asked about this
How long does a bridging loan run for?
Commonly up to six months where you are selling an existing property, and up to twelve where the new property is being built. Terms vary by lender.
It is designed as a short-term facility, and extending it is not always straightforward, so the sale timeline needs to be realistic from the start.
Do I make repayments during the bridging period?
Often the interest is capitalised — added to the loan balance rather than paid monthly — so your cash flow is not carrying two mortgages at once.
Some lenders require interest to be serviced during the period instead. Which applies depends on the lender and the structure.
What if my property does not sell in time?
This is the central risk. Interest continues to accrue on a large balance, and you may face pressure to reduce the price to meet the deadline.
It is why the exit plan matters more than the rate. We look at a conservative sale figure rather than a hopeful one when assessing whether bridging is sensible.
What if my home sells for less than expected?
The shortfall increases your end debt, which is the loan you keep servicing afterwards.
Assessing your capacity against a conservative sale price, rather than the agent's best case, is the way to avoid an unpleasant outcome.
Is bridging finance expensive?
It is usually priced above a standard home loan, and there are establishment costs and valuations on both properties.
Against that, it can avoid a rushed sale, a rental period and two moves. Whether it is worth it depends on the size and length of the overlap.
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GET IN TOUCH
Find out where you stand before you commit to anything.
Would rather talk it through?
(02) 9659 1694Important information
The information on this page is general in nature. It has been prepared without taking your objectives, financial situation or needs into account, so it is not personal advice and you should consider whether it is appropriate for you before acting on it.
Any rates, figures or examples shown are indicative only. Lending is subject to approval, and lender eligibility criteria, terms, conditions, fees and charges apply. Talk to us about what your own circumstances allow.