Know the equity
We review your current property's estimated value, mortgage balance and expected sale costs.
BRIDGING FINANCE / MOVING HOME
Buy before you sell your current home.
Found your next place but haven't sold the current one? Bridging finance may help you manage the timing—without rushing a sale just to meet settlement.
THE PROCESS
How a bridging loan typically works.
Work out the peak debt
For a period, your total lending may include both properties. Interest may be capitalised during an approved bridging term.
Sell the existing home
Sale proceeds generally reduce the temporary bridging debt and leave the agreed end loan.
EXAMPLE / ILLUSTRATIVE ONLY
See the numbers before you commit.
Imagine an existing home worth $900,000 with $350,000 owing. You are purchasing another home for $1.1 million.
There may be a period where two properties are held and interest accrues on the combined debt. Your actual borrowing, repayments, fees and end debt depend on sale proceeds, purchase costs and the lender's calculations.
Existing property$900,000
Current loan$350,000
Next property$1,100,000
These are example property values, not a lending quote. Your peak debt cannot be determined from these figures alone.WHAT TO WATCH
Useful flexibility. Real considerations.
Sale timing
Bridging periods are limited by lender policy. You need a realistic plan if your old home takes longer to sell.
Interest and fees
Capitalised interest adds to the amount owed. Rates, repayments, valuation fees and other costs vary.
Lower sale proceeds
A lower-than-expected selling price could increase your remaining home loan or leave a shortfall.
Eligibility
Not all lenders offer bridging finance, and some require an end-debt servicing assessment.
BEFORE YOU SIGN
Let's map out the two properties together.
We can compare bridging finance with alternatives such as selling first, negotiating settlement dates or using available equity.
General information only. Bridging loans are subject to lender approval, credit assessment, security and policy. Interest capitalisation can increase the total debt and cost of borrowing. Obtain independent financial, tax and legal advice where appropriate.