Bridging loans
A bridging loan lets you buy before you sell, so you do not miss the right home or move twice. Your Sydney mortgage broker, comparing 35+ lenders. $0 cost.
Found the next home but not sold yours yet? A bridging loan covers the gap, so you do not miss the right place, rent in between, or move twice. We compare bridging across 35+ lenders at $0 cost to you.
A bridge usually runs 6 to 12 months. Most lenders add the interest to the loan rather than charging it monthly, so you are not carrying two mortgages. When your home sells, the proceeds pay it down and what is left becomes a normal loan.
We explain peak debt, end debt and your exit plan up front. Use the home equity calculator to see what you have to work with.
A bridging loan runs in two stages. Peak debt is what you owe while you hold both homes. End debt is what is left once your current home sells. Here is how it plays out.
| New home + costs | Current loan | Peak debt | Expected sale | End debt |
|---|---|---|---|---|
| $1,150,000 | $300,000 | $1,450,000 | $850,000 | $600,000 |
| $1,470,000 | $400,000 | $1,870,000 | $1,000,000 | $870,000 |
| $940,000 | $0 | $940,000 | $1,300,000 | Cleared |
Simple illustrations only. Peak debt is your current loan plus the new purchase and costs. End debt is what remains after your current home sells, and where the sale covers the lot (as in the downsizer row) the bridge is cleared and you keep the difference. Most lenders keep peak debt to around 80% of the two properties combined, and interest is usually capitalised during the bridge. Remember you pay stamp duty on the new purchase around settlement, before your old home sells, though with enough equity it can sometimes be added to the bridge. We model your exact numbers, or use our repayment calculator.
A bridge suits you when your purchase settles before your sale, or when you would rather move once and sell calmly. Upsizers, downsizers and anyone buying in a market where the right home does not wait.
You generally need about 20% equity across both homes, cash savings of your own to cover the interest, and a realistic plan to sell in time. We check all three before you commit.
Sell first and you get a firm budget, usually with a rental in between. Buy first with a bridge and you secure the home, then sell without pressure. A matched settlement is a third path. We weigh all three for you.
A quick plain-English guide to the words you will hear during a bridge.
Real situations, and what we did for them.
A bridge is straightforward when it is set up well. These are the things we make sure are covered.
Real answers to the questions homeowners ask us about buying before they sell.
We compare 35+ lenders, structure your bridge to keep costs down, plan your exit, and manage the whole move through to your ongoing mortgage. $0 cost.
MFAA member. 10+ years lending experience.
Explore the guides and services that pair with a bridging loan.
Bridging loan Sydney specialists helping homeowners buy before they sell across 220+ suburbs and Australia wide. Meet our team. Service regions: Sydney CBD, Sydney Central, Eastern Suburbs, Northern Beaches, North Shore, Inner West, Sutherland Shire, Hills District, St George, Canterbury-Bankstown, Western Sydney, Penrith.
