Bridging loan

Bridging loans

Buy your next home
before you sell.

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.

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35+
Lenders compared
6-12mo
Bridging period
10+
Years lending
$0
Cost to you

What is a bridging loan, and how does it work?

Found the next home but not sold yours yet? A bridging loan covers the gap. It is short-term finance that lets you buy before you sell, so you do not miss the right place, rent in between, or move twice. We compare bridging options across 35+ lenders and structure the most cost-effective one, at $0 cost to you.

A bridge usually runs 6 to 12 months. During that time the interest is often added to the loan, or capitalised, so you may not be making monthly payments, though some lenders ask you to service the interest as you go. Once your current home sells, the proceeds pay down the loan and what is left, your end debt, becomes a normal mortgage. We explain peak debt, end debt, and your exit plan so nothing is a surprise.

Read our buying your next home guide for the full picture of selling and buying together, or use our home equity calculator to see how much equity you have to work with.

The numbers

How does peak debt become end debt?

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 + costsCurrent loanPeak debtExpected saleEnd 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$1,300,000Cleared

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.

Thinking about buying before you sell?

Tell us about both properties and we will work out your peak debt, your end debt, and the most cost-effective bridge across 35+ lenders. Clear answers, no pressure.

0426 002 202 Let's meet

MFAA member. 10+ years lending experience. $0 cost to you.

Why Buyvest

Why do homeowners choose Buyvest to bridge?

A bridge has a few moving parts. A broker who knows the lenders and the structure makes it simple.

35+ lenders compared

Not every lender offers bridging, and those that do vary a lot on rate and terms. We compare our whole panel to find the best fit for your situation and your LVR.

Structured to keep costs down

How the bridge is set up drives the total cost. We keep your peak debt as low as sensible, choose the right interest arrangement, and show you the full picture first.

A clear exit plan

Every bridge needs a realistic plan to sell within the period. We help you build one, with an appraisal, market timing, and a backup if the sale takes longer.

Offer with confidence

With the bridge pre-approved you can make an unconditional offer, no subject-to-sale clause. Sellers prefer that, which is an edge at auction.

$0 cost to you

The lender pays us on settlement, so your rate is the same either way. You get expert structuring and exit planning without paying a cent.

A smooth move to your end debt

Once your home sells, the bridge converts to your ongoing mortgage. We set the end debt up with the right rate and features, offset and redraw included.

Is a bridging loan right for you?

A bridge suits you when you have found the home you want but your current one has not sold, when your purchase is due to settle before your sale, or when you would rather move once and sell calmly than rush. It is popular with upsizers, downsizers, and retirees moving to something smaller, and with anyone buying in a market where the right home does not wait around.

You generally need around 20% equity across both homes, since lenders keep peak debt to about 80% of the two combined. Because a bridge means holding more debt than you would normally carry, many lenders also want you to hold some cash savings to cover the interest during the bridge, and they will not lend you that buffer, it needs to be your own. The other thing they look for is a realistic plan to sell within the bridging period. We check all three before you commit.

Not sure whether to sell first or buy first? Selling first gives you a firm budget but usually means renting in between. Buying first with a bridge lets you secure the home and sell without pressure. A same-day matched settlement is a third path. We weigh all three for your situation.

The key concepts

Peak debt, end debt, and the terms that matter

A quick plain-English guide to the words you will hear during a bridge.

Peak debt

The most you owe while you hold both homes: your current loan plus the new purchase plus costs. Lenders keep it to around 80% of the two properties combined.
Estimate repayments

End debt

What is left after your current home sells and the proceeds come off. This becomes your ongoing mortgage with normal repayments.
Calculate your equity

Capitalised interest

Many lenders add the interest to the loan instead of charging it monthly, so you are not covering two mortgages at once. Not all do, and some still want savings set aside to cover it. It grows over time, so selling sooner keeps the cost down.

Open vs closed

Closed means your current home is already under contract, which is lower risk and can price better. Open means it has not sold yet, usually at a slightly higher rate.

Bridging period

The time you have to sell, usually 6 to 12 months, with 6 months the common default. A realistic sale plan keeps you comfortably inside it.

Deposit bonds

A guarantee that stands in for the cash deposit at exchange when your money is tied up in your current home. Handy when timing is tight.
Read next home guide
Your situation

When does a bridging loan make sense?

A few common situations where buying before you sell is the easier path.

Buying at auction before your home sells

Auction offers are unconditional, so a subject-to-sale clause is not an option. With a bridge pre-approved you can bid and win with confidence, then list your current home and sell it in your own time.

Example scenario

A couple find their upgrade at auction for $1,150,000. They still owe $300,000 on their current home. A bridge lets them settle the purchase now, taking peak debt to about $1,450,000. Their home later sells for $850,000, which pays down the bridge and leaves an end debt of around $600,000 as their ongoing mortgage.

Downsizing and clearing the loan

If you are downsizing, the sale of the family home often more than covers the new place. A bridge lets you buy the smaller home first and move once, then clear everything when the big home sells.

Example scenario

A downsizer buys a $940,000 home with no loan on their current house. Peak debt during the bridge is about $940,000. When the family home sells for $1,300,000, the sale clears the bridge in full and leaves cash left over, with no ongoing mortgage.

Keeping your current home as an investment

Sometimes you want to buy a new home to live in and keep the old one as a rental rather than sell. A bridge can help you settle the new purchase first while you sort out the rest. We set the loans up separately and work in with your accountant on the tax side.

Plan ahead

What to plan for with a bridge

A bridge is straightforward when it is set up well. These are the things we make sure are covered.

Your sale timeline

The bridge works best with a realistic plan to sell inside the period. We help you get the home ready and priced to move, not to sit.

Interest that adds up

Capitalised interest grows the balance while you hold both homes, so a shorter bridge costs less. Many lenders also want cash savings set aside to cover it. We factor both into the numbers up front.

Your 80% headroom

Peak debt needs to sit within about 80% of both properties combined. We check your equity gives you the room before you commit.

Two valuations

Lenders usually value both homes. We line these up early so they do not hold up your settlement.

Your end debt repayments

What matters long term is the loan left after the sale. We make sure the end debt is comfortable and set up with the right features.

A backup if the sale is slow

If the market is quiet, we have a plan, whether that is an extension, a price move, or a refinance. You are never left without options.
How it works

Bridging with Buyvest, step by step

1

Free bridging assessment

We work out your peak debt and likely end debt, compare bridging rates across 35+ lenders, and map your exit plan and timeline. Sell first or buy first, we cover every scenario.
2

Pre-approval and purchase

We secure pre-approval so you can make an unconditional offer, handle the valuations and application, and coordinate settlement on your new home. You move in without waiting for the sale.
3

Sell and transition

You sell your current home at the best price on your timeline. The proceeds pay down the bridge, and the end debt converts to your ongoing mortgage. We manage the whole transition.
Free tools

Work out your bridging position

Estimate your equity, your end debt repayments, and your upfront costs before you start.

Home equity calculator

See how much equity you have available across your current property.
Calculate

Property deposit calculator

Work out your deposit and upfront costs on the new purchase.
Calculate

Mortgage repayment calculator

Estimate repayments on your end debt once the sale goes through.
Calculate

Bridging loans and buy before you sell finance for homeowners across Sydney. Peak debt, end debt, capitalised interest, deposit bonds, and exit strategy planning, comparing bridging rates across 35+ lenders. $0 cost to you.

Client reviews

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"Had a great experience with Ali where he explained all my options and helped me understand exactly how my loan would work and with the best rate possible. Thanks for your help!"
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"Ali is our trusted advisor for many years. He responds swiftly and honestly. He is the best in working out options for loans. He goes above and beyond to get the best outcome for the customers. I would recommend his services to anyone."
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"Ali is super knowledgeable, reasonable and personable! He will be realistic with what's possible but always find you the best deal whilst making you feel looked after. Would highly recommend to anyone!"
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FAQ

Bridging loan questions

Real answers to the questions homeowners ask us about buying before they sell.

What is a bridging loan?
A bridging loan is short-term finance that lets you buy your next home before you have sold your current one. It covers the gap between the two, and it is secured against both properties for the bridging period. Once your old home sells, the proceeds pay down the loan and what is left becomes your normal mortgage.
How does a bridging loan let me buy before I sell?
It gives you the funds to settle on the new place while your current home is still on the market. The lender holds both properties as security and checks you can handle the loan that remains after the sale. That means you can move straight into the new home and sell the old one without rushing.
What is peak debt?
Peak debt is the most you owe while you hold both homes at once. It is your current loan, plus the new purchase price, plus costs like stamp duty and any interest added during the bridge. Most lenders keep peak debt to around 80% of the two properties combined.
What is end debt?
End debt is what is left after your current home sells and the proceeds come off the loan. It becomes your ongoing mortgage with normal repayments. For example, if your peak debt is $1,200,000 and your old home sells for $750,000, your end debt is about $450,000.
What is capitalised interest?
With most bridging loans the interest is added to the loan balance instead of being paid monthly, so you are not covering two mortgages at once during the bridge. It does mean your balance grows over the bridging period, so selling sooner keeps the cost down. Some lenders let you pay interest as you go instead.
How long is the bridging period?
Most lenders give you 6 to 12 months to sell your current home, with 6 months being the common default. Longer terms are possible with some lenders for trickier situations. Extensions beyond that are rare and can come with conditions.
What happens if my property does not sell in time?
If the sale runs past the bridging period, your options include asking for an extension, adjusting the price to sell faster, refinancing the loan, or renting the place out for a while. This is why a realistic plan to sell matters before you start. We build a backup plan into every bridging strategy.
What is an open bridging loan versus a closed one?
A closed bridge means you have already exchanged contracts on your current home with a settlement date locked in, which is lower risk and can mean a better rate. An open bridge means it has not sold yet and the timing is uncertain, which usually carries a slightly higher rate. We advise on which one fits your situation.
How much does a bridging loan cost?
The main cost is the interest that builds up during the bridge, plus the usual bits like an establishment fee, valuations, and a discharge fee on your old loan. As a rough guide, total costs often land somewhere between $6,000 and $15,000 depending on the amount and how long the bridge runs. We model your numbers before you commit.
Do I still pay stamp duty while bridging, before my home sells?
Yes. Stamp duty is due on the new purchase around settlement, whether or not your current home has sold yet, so it needs to be planned for up front. In NSW it is generally payable within about three months of settlement. If you have enough equity, the duty can sometimes be added to the bridge rather than paid from cash, and we factor it into your peak debt from the start.
Is a bridging loan worth the cost?
For a lot of people it is, because it lets you secure the right home, avoid moving twice or renting in between, and sell your current place without pressure. Weigh the cost against what a rushed sale might lose you. We help you compare the two so the decision is clear.
Should I sell first or buy first?
Selling first gives you a firm budget but usually means renting in between and rushing to find a home. Buying first with a bridge lets you secure the right place and sell calmly, for the cost of the bridge. A matched settlement, where both happen on the same day, is a third option. Our buying your next home guide weighs all three.
Can I use a deposit bond with a bridging loan?
Yes. A deposit bond stands in for the cash deposit at exchange, which is handy when your money is still tied up in your current home. It usually costs around 1% to 1.5% of the deposit and runs until settlement. We can arrange one alongside the bridge when timing is tight.
How much equity do I need for a bridging loan?
As a rule of thumb, lenders want your peak debt to sit at around 80% or less of the two properties combined, so you generally need about 20% equity across both. The more equity you have, the lower your rate tends to be. Use our home equity calculator to get a feel for your position.
Can retirees and downsizers get a bridging loan?
Often, yes. Downsizing is one of the most common reasons people bridge, since the sale of the family home usually more than covers the smaller purchase. The thing lenders look at most closely is whether you can service the end debt, the loan left after the sale, which matters more for retirees on a lower or fixed income. Where the sale is expected to clear the loan in full, that end debt can be small or nil. We match you with a lender that takes a sensible view of your income and your sale.
Do I make repayments during the bridging period?
It depends on the lender. Some capitalise the interest, so there are no monthly payments during the bridge and it is added to the balance instead. Many others require you to keep paying interest on the peak debt as you go, on top of your normal costs. Either way, lenders often want you to hold cash savings to cover that interest, since a bridge means carrying more debt than usual. Normal repayments on your end debt start once the sale goes through.
Do I need extra cash or savings for a bridging loan?
Often, yes, and this catches people out. A bridge means borrowing more than you would normally carry, so most lenders want to see you can cover the interest that builds up during the bridge, commonly by holding it in cash savings. Importantly, the bank generally will not lend you that buffer, it has to be your own money, much like the genuine savings expected on a normal loan. We check each lender’s requirement early so you know exactly what to set aside before you commit.
Are bridging rates higher than normal home loan rates?
They are usually a bit higher, often somewhere in the range of half a percent to two percent above a standard variable rate, because the loan is short and carries more timing risk. The gap varies between lenders, and because the bridge is short the total interest is manageable. We compare 35+ lenders to keep it down.
Can I get pre-approved for a bridging loan?
Yes. Pre-approval means a lender has looked at your position and agreed in principle, so you can make an unconditional offer when the right home comes up. It usually lasts about 3 to 6 months. We line it up so you can move quickly.
What is a simultaneous settlement?
It is when your sale and your purchase settle on the same day, so you avoid a bridge altogether. It is neat when it works, but it needs both deals to line up perfectly, and a delay on one side affects the other. We can help arrange it, or set up a bridge as the safer fallback.
What if my sale and purchase settlement dates do not line up?
This is one of the most common reasons people bridge. If the settlement on your new home lands before the settlement on your sale, a bridge covers that gap cleanly so you are not caught short. It also means you do not have to push for a same-day matched settlement, which can be hard to coordinate and falls apart if one side slips. We structure the bridge around your two dates.
Can self-employed borrowers get a bridging loan?
Yes, though the paperwork is a bit more involved. Lenders want to see you can handle the end debt, which usually means a couple of years of tax returns. See our self-employed home loan page. We know which lenders are most flexible here.
Can I use a bridging loan for an investment property?
Yes. The same peak debt and end debt ideas apply whether the property you are buying or selling is a home or an investment. If you are keeping your current home as a rental and buying a new one to live in, a bridge can help you line it up. We set the loans up with your accountant’s tax advice in mind.
What is the difference between a bridging loan and refinancing?
A bridge is short-term finance for buying before you sell. Refinancing is swapping your existing loan for a better rate or features over the long term. They solve different problems. If you just want to unlock equity without selling, refinancing or an equity release may suit better.
What exit strategy do lenders want to see?
Lenders want a realistic plan for selling your current home within the bridging period. That usually means an agent appraisal with an expected price and timeframe, evidence the home is ready or nearly ready to list, and recent comparable sales nearby. A solid plan makes approval much smoother.
How quickly can a bridging loan be approved?
Straightforward applications can be approved in about 3 to 10 business days, while more complex ones can take up to around three weeks. Getting pre-approved in advance means you are ready to move the moment the right home appears. We prepare everything up front to avoid delays.
What are the risks of a bridging loan?
The main risk is your current home taking longer to sell than planned, which adds interest and can push against the bridging period. A soft market or an over-optimistic asking price makes that more likely. We keep peak debt sensible, build in a backup plan, and price the bridge on a realistic sale, not a hopeful one.
Should I use a mortgage broker for a bridging loan?
It helps, because not every lender offers bridging and the terms vary a lot. We compare 35+ lenders, structure the bridge to keep costs down, work out your peak and end debt, and help build your exit plan. It costs you nothing, since the lender pays us on settlement.
Where to next

What else can Buyvest help you with?

Explore the guides and services that pair with a bridging loan.

Buying your next home

Learn more

Refinance your loan

Learn more

Using equity to invest

Learn more

Investment property

Learn more

Guarantor loans

Learn more

Self employed loans

Learn more

LVR guide

Read guide

Bank valuations

Read guide

Settlement guide

Read guide

Choosing finance

Read guide

Buying the right property

Read guide

Pathways to ownership

Read guide

Buy your next home on your terms.

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.

0426 002 202 Let's meet

MFAA member. 10+ years lending experience.

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.