Bridging Loans

A bridging loan provides funds to purchase a new property while you’re waiting to sell your current one. Once the old property sells, the sale proceeds are used to reduce the loan, and the remaining amount becomes your ongoing mortgage.

This depends on your equity, the value of both properties, and the lender’s policies. Most lenders will assess your ability to service the peak debt (combined value of both properties), though some allow for interest capitalisation during the bridging term.

Peak debt is the total amount borrowed during the bridging period—typically the full purchase price of your new property, plus any remaining mortgage on your current home, plus interest and costs.

Not necessarily. Most lenders allow interest-only repayments during the bridging term to ease cash flow, and some even allow the interest to be capitalised—added to the loan balance—so you don’t make any repayments until your existing property is sold. This can provide financial breathing room during the transition.

Most bridging loan terms range from 6 to 12 months, giving you time to sell your current property. Some lenders may extend up to 18 months in certain cases.

Yes. Bridging finance can be used for both owner-occupied and investment properties, though lending criteria may be more stringent for investment purchases.

Some lenders charge slightly higher rates for bridging finance due to the short-term risk, but others offer competitive rates in line with standard home loans. We’ll compare options across our panel to find you the best deal.

If your property hasn’t sold within the bridging period, you’ll need to speak with your lender about extending the loan or refinancing. Shore Financial can help you explore options if this situation arises.

The main risks include not selling your existing property within the loan term, or the sale price being lower than expected—potentially leaving a larger ongoing debt. It’s important to seek advice and have a realistic selling strategy in place.

It’s simple—contact us for a free assessment. We’ll review your current position, run the numbers on potential scenarios, and find the most suitable lender and structure for your needs.