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Bridging Loans
Short-term bridging finance to help you purchase a new property before selling your existing home
What is Bridging Finance?
Bridging finance is a short-term lending solution that allows you to purchase a new property before selling your current one. It is commonly used when the timing of buying and selling doesn't align, providing greater flexibility during the transition.
The loan is designed to bridge the financial gap between the purchase of your new property and the sale of your existing one, and is typically repaid once your current property settles.
Common Bridging Finance Scenarios
Bridging loans are designed to provide flexibility during the transition between properties
Reducing Time Pressure
Selling under tight timeframes can place unnecessary pressure on achieving the best possible outcome. Bridging finance may provide additional time to market your property, negotiate with buyers and complete the sale before repaying the bridging loan.
Buying Before Selling
Purchasing a new home before selling your existing property can be challenging when settlement dates don't align. Bridging finance may allow you to secure your next home first, reducing the pressure of coordinating both transactions and giving you greater flexibility throughout the moving process.
Buying at Auction
Auction purchases typically involve fixed settlement timeframes, which may not align with the sale of your existing property. Bridging finance may provide the short-term funding needed to secure the property while allowing additional time for your current home to be sold.
Upsizing or Downsizing
Whether you're moving to a larger home or downsizing to better suit your lifestyle, bridging finance can help make the transition smoother. It may reduce the need for temporary accommodation, multiple moves or rushed property decisions while your existing home is being sold.
Buying Before Selling
Purchasing a new home before selling your existing property can be challenging when settlement dates don't align.
Bridging finance may allow you to secure your next home first, reducing the pressure of coordinating both transactions and giving you greater flexibility throughout the moving process
Upsizing or Downsizing
Whether you're moving to a larger home or downsizing to better suit your lifestyle, bridging finance can help make the transition smoother.
It may reduce the need for temporary accommodation, multiple moves or rushed property decisions while your existing home is being sold
Buying at Auction
Auction purchases typically involve fixed settlement timeframes, which may not align with the sale of your existing property.
Bridging finance may provide the short-term funding needed to secure the property while allowing additional time for your current home to be sold
Reducing Time Pressure
Selling under tight timeframes can place unnecessary pressure on achieving the best possible outcome.
Bridging finance may provide additional time to market your property, negotiate with buyers and complete the sale before repaying the bridging loan
Factors Lenders May Consider
Bridging loan assessments vary between lenders and are focused on both the current and proposed property transactions. Key factors typically include:
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Equity in existing property
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Expected sale price and market conditions
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Purchase price of new property
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Combined loan exposure during bridging period
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Exit strategy and sale timeline
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Borrower repayment capacity post-bridging
Because each lender assesses commercial risk differently, selecting the right lender is critical. Structuring the loan correctly from the outset can impact approval outcomes, borrowing capacity, and long-term flexibility.
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If you'd like to understand Bridging Finance options to manage your property transition smoothly, obligation free, please get in touch.
Related Lending Solutions
Depending on your strategy, Bridging Finance can often overlap with other finance solutions, including:
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To help you purchase or refinance a Home Loan wiith flexible structures including variable, fixed and split rate options
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Development & Construction Finance
For property development projects and staged construction funding
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For funding vehicles, equipment and business assets that support operations
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Lending criteria, fees, charges and eligibility requirements vary between lenders. All applications are subject to individual assessment and lender approval.
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