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Bridge between homes, without the stress.

Bridging finance lets you buy your next home before you sell the one you have. Structured well, a bridge is uneventful. Structured badly, it keeps you awake at 3am.

Peak debt, end debt and the 6 to 12 month window.

A bridging loan is a short-term facility that covers both properties. At purchase, your total debt (existing loan, new purchase and costs) is the 'peak debt'. When the existing property sells, the proceeds pay down the peak and leave the 'end debt', which is the loan you service long term. You usually have 6 to 12 months to sell. Interest is often capitalised, meaning it is added to the loan rather than paid monthly. Not every lender offers bridging.

This page sits under home loans and goes with the next home buyers page. If equity release can replace formal bridging, that is usually the cleaner path, and we'll tell you if it's available to you.

What a good bridge looks like.

Realistic sale assumptions
A conservative sale price, an honest timeline and a buffer for the cost of carrying both properties.
Serviceability headroom
Enough serviceability to hold both properties through a worst-case 12 months without selling.
Interest handling
Whether interest is capitalised or paid, and what that means for cashflow and total cost.
Clean exit plan
A defined end-debt structure, so the loan resets correctly and automatically when the sale goes through.

Bridging FAQs

What happens if the existing property takes longer to sell?
The lender charges penalty interest on the peak debt or requires a sale. Neither is pleasant. You avoid both by building the bridge on a conservative sale price, a realistic timeline and a contingency, rather than the most optimistic assumptions.
Is bridging more expensive than a normal loan?
The rate is usually comparable to a standard variable rate. The total cost of the bridge is the interest on peak debt for as long as you hold both properties, so modelling that cost matters more than the headline rate.
Do all lenders offer bridging?
No. Many do, but terms, LVR limits and serviceability treatment vary widely. Picking the right lender for a bridge is more than half the work.

Related pages

Next home buyersRefinancing
General advice disclaimer. The information on this page is general in nature and does not take into account your personal objectives, financial situation or needs. You should consider whether it is appropriate for you before acting on it, and seek professional advice where relevant.

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