Everything you need to know about bridging loans in Australia
A bridging loan is a type of loan that helps you get through the time between buying a new house and selling an old one in Australia. Whether you're in a competitive market or need to act quickly, a bridging loan provides the flexible financing you need to move forward without pressure.
Our expert mortgage brokers help you understand bridging loans, compare rates across 35+ lenders, and structure the right solution for your property transition. Buy now, sell later—on your timeline, not the market's.
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Free Bridging Loan AssessmentWhy choose Buyvest mortgage brokers over banks for your bridging loan
35+ lenders to compare
Banks represent only themselves. We represent you, comparing rates and terms across all major lenders.
No cost to you
Lenders pay our commission directly. You pay the same rate whether you go to the bank directly or through us—but with expert guidance included.
Time & money savings
We navigate complex paperwork, coordinate valuations, and manage lender communications. We often save clients thousands in rates and fees.
Specialised strategies
We structure your bridging loan to match your unique buying situation. Whether it's timing, property requirements, or flexible terms, we find solutions tailored to your move.
Lender relationships
We have established relationships with major lenders specialising in bridging finance, accelerating approvals and ensuring smooth fund disbursement.
Ongoing support
We don't disappear after settlement. We're available for refinancing, rate reviews, and assistance as your situation evolves.
How can Buyvest mortgage brokers help you with your bridging loan?
Quick access to cash
Bridging loans give you the money you need to buy a new house right away, which is crucial in a competitive market.
Flexible repayment terms
Depending on your lender, you might be able to pay off the loan immediately after you sell your current home, or you might have more time to do so.
Move to your new home
A bridging loan makes it easier to relocate from one residence to another without worrying about meeting tight deadlines or compromising on price.
Competitive rates
We compare multiple lenders to secure the lowest available bridging rates. Your rate depends on your LVR, credit history, and loan type.
Unconditional offers
With bridging pre-approved, make unconditional offers on your new property. This gives you negotiating strength sellers prefer.
Seamless transition
When your current home sells, we help coordinate the payoff of your bridging loan and transition to your permanent mortgage seamlessly.
What does it mean to have a bridging loan?
A bridging loan allows you to buy a new house before selling your old one. You can purchase the new property right away with this kind of loan while you wait for the sale of your old property to go through. People in Australia often use bridging loans when they need money quickly but haven't sold their house yet. These loans are useful when the real estate market is tough, and you need to act quickly.
Closed Bridging Loan
If you know when your current house will sell, this loan is a great option for you. You will know exactly when you have to pay back the loan. Interest rates are typically lower because the lender has more certainty.
Open Bridging Loan
This is for people who don't know when they will be able to sell their house. Interest rates on open loans are usually higher because lenders are taking on more risk, but you have greater flexibility on repayment timing.
How does a bridging loan work?
A bridging loan gives you the money you need to cover the difference between the price of your current home and the price of your new home. Typically, you pay off this debt when you sell your house. Understanding the process helps you make informed decisions about whether bridging is right for your situation.
The bridging process
Step 1: You apply for bridging finance with details of both properties.
Step 2: We compare rates and structure your loan across 35+ lenders.
Step 3: Funds are approved and settled quickly.
Step 4: You purchase your new home while marketing your current property.
Step 5: When your current home sells, the bridging loan is repaid from the sale proceeds.
Key features
Short-term finance: Typically 6-12 months, sometimes longer if needed.
Interest-only payments: Many lenders offer interest-only options during the bridge period.
Flexible terms: Repay early without penalty when your sale completes.
Quick approval: Often approved within days for smooth settlement.
Bridging loan calculators
Use our free mortgage tools to analyse your bridging loan needs and understand your borrowing capacity
Factors that affect bridging loan interest rates
When looking into bridging loans in Australia, one key thing to think about is the interest rate on the loan. The interest rate on a bridging loan is usually greater than that of a regular home loan. Lenders assume that bridging loans, especially open loans, are riskier. However, the rate can fluctuate, so it's important to check prices from different lenders and compare them.
Interest rate factors
Lender choice: Different lenders offer different rates. We compare all major lenders to find the best available.
Loan type: Closed bridging loans typically have lower rates than open loans due to lower risk.
Loan-to-value ratio (LVR): Lower LVR means better rates. We help you optimize your structure.
Credit history: Your credit profile affects the rate offered by lenders.
Property type: Investment properties may have slightly different rates than primary residences.
Advantages of a bridging loan
Quick access to cash
Bridging loans give you the money you need to buy a new house right away, which is crucial in a competitive market where good properties sell quickly.
Flexible repayment terms
Depending on your lender, you might be able to pay off the loan immediately after you sell your current home, or you might have more time to do so.
Helps you move to your new home
A bridging loan makes it easier to relocate from one residence to another without worrying about meeting tight deadlines or being forced into a rushed sale.
Negotiating power
Make unconditional offers on your new property instead of conditional "subject to sale" offers, giving you a significant advantage in competitive markets.
Things to consider before taking out a bridging loan
High-interest rates
Bridging loans are easier to access, but the interest rates are higher than those on regular loans. This is the trade-off for speed and flexibility. We compare 35+ lenders to ensure you get the best available rate.
Repayment terms
Know the terms of the loan and when you'll need to repay it. Understand whether you have an open or closed bridge, and what happens if your sale takes longer than expected.
Sale of your current home
The value of your current house and how quickly you can sell it will determine how much you can borrow. Market conditions and property condition affect your borrowing capacity.
Financial planning
Before taking out a bridging loan, ensure you understand the total costs including interest, fees, and charges. Use our calculators to plan your finances accurately.
Documents needed for a bridging loan application
Have these ready to streamline your approval process and get pre-approved faster for your bridging loan.
Personal Identification
Australian passport or driver's license (with photo, full name, DOB, current address), plus citizenship certificate or birth certificate.
Proof of Income
Two recent payslips from current employer, or 2 years' tax returns if self-employed. For contract/casual work, employment letters plus most recent Pay As You Go (PAYG) summary.
Financial Statements
Latest bank statements (3 months), savings account statements, and internet banking history showing your current financial position.
Property Details
Current property valuation or council rates notice. Details of the new property you're purchasing. Recent property market data if available.
Existing Debt Information
Statements for all existing home loans, car loans, credit cards, and personal loans. We calculate your full debt servicing capacity.
ABN & Business Documents (Self-Employed)
ABN details, 2 year's company tax returns & profit & loss statement, personal tax return, personal notice of assessment & Business Activity Statements.
Bridging your property move with confidence
With a bridging loan, you might be able to buy a new house before you sell your old one. You can make an informed decision by utilizing a bridging loan calculator to figure out how much it will cost and by comparing the different interest rates for these loans.
Before you sign up for any financial product, make sure to read the fine print to ensure it meets your needs. If you're considering a bridging loan in Australia, compare offers from different lenders. A bridging loan can help you buy your next house if you know how to use it. Our expert brokers are here to guide you through every step of the process.
Frequently asked questions about bridging loans
How much money can I borrow with a bridging loan?
The lender's requirements, the value of your property, and how much you can afford to repay will all affect how much you can borrow. Most of the time, you can borrow 80% to 90% of the value of your home.
How long can I keep using a bridging loan?
Most of the time, bridging loans are short-term loans that last from six to twelve months. However, this can change based on the terms of your loan with your lender and your specific circumstances.
Can you get a bridging loan to buy rental properties?
You can get bridging loans for both your home and your rental property. However, lenders may have stricter rules for properties intended for investment due to higher perceived risk.
How do I find out how much a bridging loan will cost?
You can use a bridging loan calculator to figure out how much a bridging loan will cost. These calculators take into account factors like the loan amount, interest rate, and how long it will take to repay the loan.
What will happen if I can't sell my house?
If your property doesn't sell in time, you might have to ask your lender for more time to repay the loan or come up with a different payment plan. Open bridging loans are usually more flexible, but they also have higher interest rates.
Mortgage brokers for bridging loans across Sydney and Australia
Our expert mortgage brokers help homeowners access bridging loans across Sydney and Australia. Whether you're buying your next home or need to bridge a property transition, our team of experienced bridging loan specialists are here to guide you through every stage of your move.
Ryde area suburbs
Greater Sydney regions
Regional NSW
Australia wide
Ready to bridge your property move? Contact us to explore bridging loan solutions nationwide and how we can help you finance your property transition.
Let's bridge your property move together
Get expert advice on bridging loans tailored to your situation. Our mortgage brokers have helped hundreds of Australians bridge their property moves with competitive rates and flexible terms.
Free Bridging Loan AssessmentImportant stuff:
Please note that the views and opinions expressed in this post are general information only, and this is not financial advice.
Any advice and information is provided by Buyvest Pty Ltd ABN 91 684 841 496, Australia Credit Licence No. 567392 and is general in nature, for educational purposes only and is not intended to constitute specialist or personal advice. This website has been prepared without considering your objectives, financial situation or needs. Therefore, consider the appropriateness of the advice for your situation and needs before taking any action. It should not be relied upon to enter into any legal or financial commitments. Specific investment advice should be obtained from a suitably qualified professional before adopting any investment strategy. If any financial product has been mentioned, you should obtain and read a copy of the relevant Product Disclosure Statement and consider the information contained within that Statement concerning your circumstances before deciding whether to acquire the product. You can obtain a copy of the PDS by emailing hello@buyvest.com.au. If you want to change your financial circumstances, such as applying for a loan, all loan applications are subject to credit approval.
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