Bridging Finance

Approval times can vary, but Bridging Finance are often known for their quick processing. Some lenders may provide approvals within a few days.

Properties with sufficient equity are typically eligible. This can include residential, commercial, or industrial properties. The amount you can borrow may depend on the property's value and your ability to repay the loan.

Interest rates on bridging loans are generally higher than standard mortgages due to the short-term nature and higher risk. Rates can vary widely based on the lender, the borrower’s credit profile, and the specifics of the loan.

Bridging loans can be arranged quickly, often within a few days to a few weeks, depending on the lender and the complexity of the application.

An exit strategy is a plan for how you will repay the bridging loan. Common exit strategies include selling a property, securing long-term financing, or using other financial resources to pay off the loan.

Yes, there are typically several fees associated with bridging loans, including arrangement fees, valuation fees, legal fees, brokerage and exit fees. These can add to the overall cost of the loan.

If you cannot repay the loan on time, the lender may charge additional interest and fees, and ultimately, they may repossess and sell the property used as collateral to recover the loan amount.

It may be possible to get a bridging loan with bad credit, as lenders often focus more on the value of the collateral and the exit strategy. However, having bad credit may result in higher interest rates and fees.

Bridging loans are typically repaid in one lump sum at the end of the term, which may include the principal amount plus any accrued interest and fees. The repayment is often made through the sale of an asset or securing long-term financing.

Yes, bridging loans can be used for business purposes, such as covering short-term cash flow needs, financing business expansion, or purchasing commercial property.

Same-day settlement is not typically possible due to valuation and legal requirements, but same-day pre-approval is achievable in urgent situations where all documents are ready. Full unconditional approval and settlement generally takes 5-10 business days. The earlier you contact a specialist, the more lender options remain available. For genuinely time-critical situations, advise the full timeline at the point of first contact.

Yes. Bridging finance is well-suited to auction purchases because it can be arranged quickly and does not require the documentation of a standard mortgage. Auction settlement periods of 28-42 days align with bridging finance processing timelines. The exit strategy is typically refinancing into a standard mortgage once the property settles. Obtaining pre-approval before the auction date gives you clarity on your borrowing capacity before you bid.

Yes. This is one of the most common uses for bridging finance. Equity in your existing property is used as security, giving you the funds to complete a new purchase without requiring the prior sale. The exit strategy is the subsequent sale of the existing property. Most lenders lend up to 80% LVR against the security property. Your available equity and maximum bridging limit can be calculated from the current property value and existing mortgage balance.

Contact your lender immediately if it becomes clear the sale will not complete within the loan term. Most lenders will consider a short extension of 1-3 months where there is a genuine reason for the delay. Extensions typically incur additional fees. If an extension is not granted and the loan cannot be repaid, the lender has the right to take possession of the security property. A clear, realistic exit strategy before drawing the loan is the most effective protection against this outcome.

Yes. Bridging finance is not limited to property transactions. It is commonly used by businesses to bridge short-term cash flow gaps while awaiting a large client payment, property sale proceeds, or the settlement of a commercial transaction. The loan is secured against property, but the purpose can be any legitimate business need. The exit strategy in this context is typically the incoming payment or a refinance into a longer-term commercial facility once cash flow stabilises.

Yes. Second mortgage bridging loans are available. A second mortgage sits behind the existing first mortgage, which carries higher risk for the lender and typically attracts a higher interest rate, starting from 14.99% pa. The combined debt across both mortgages must remain within the lender's maximum LVR. Provide details of your first mortgage balance and current property value at the point of inquiry so available equity and maximum second mortgage amount can be confirmed.

Yes. Bridging finance is available for residential, commercial, and industrial property purchases. Commercial bridging loans are assessed on the same core criteria: the equity position of the security, a clear and viable exit strategy, and the borrower's ability to service interest during the term. LVR limits for commercial property are typically slightly lower than for residential. Provide the property type, purchase price, and proposed exit strategy for an indicative assessment.