What is a bridging loan?
A bridging loan is a helping hand for when you want to secure your next home before your current one has sold. It lets you unlock the equity in your existing property, providing you the flexibility to move forward with confidence.
How does it work?
A bridging loan uses both your current and new properties as security, making it possible for you to buy your next place even before your old home has sold. Once your sale goes through, the loan is paid off or reduced from the sale proceeds.
It may be a great solution if you’re:
- Planning to move into a home that suits your next chapter, whether that’s upsizing or downsizing
- Dealing with delayed settlement on your current home but don’t want to miss out on a fantastic new property
- Looking to use equity from your investment portfolio for a new purchase
- Wanting funds for a few value-adding touch-ups to maximise your sale price
Bridging loans are designed to make moving a whole lot smoother, no matter what life stage you’re in.
Practical Tips for Bridging
- Be realistic about your existing property’s sale price and timeline
- Thoroughly assess your repayment capacity if there’s a sale delay
- Factor in costs such as valuation, setup, and potential legal fees—budgeting can smooth unexpected bumps
- Engage The Finance Brokers early to discuss your funding options
Talk to the Right Experts
The smart approach is to work with professionals who can tailor finance to fit your circumstances—not the other way around. The team at The Finance Brokers offers deep expertise in bridging loans, combined with candid advice and reliable support through the full transaction journey.
*For practical answers and bespoke finance solutions, contact The Finance Brokers:
1300 001 397