Loan types
Bridging finance — buy before you sell
Found your next home but haven't sold the current one yet? Bridging finance covers the gap. It's a short-term loan that lets you move forward without waiting for your sale to settle.
How it works (the short version)
You borrow enough to settle on the new property while still owning the old one. The bridging loan is typically interest-only (sometimes with capitalised interest, meaning you don't pay anything until it's repaid). Once your current home sells and settles, the bridging portion is paid off.
The rate is higher than a standard home loan — you're paying for convenience and timing flexibility. Most bridging finance runs for 3 to 12 months.
Who it suits
- —Homeowners upgrading who've found the right property but haven't sold yet
- —People in a hot market where good houses go fast and they can't afford to wait
- —Families who need to settle into the new place before putting the old one on the market
Key things to know
What's good
- You don't miss out on the right property
- Removes the pressure to sell at a discount just to align timing
- Short-term — you only pay the higher rate briefly
What to watch
- Higher rate than a standard mortgage
- If your current home takes longer to sell than expected, it gets expensive
- Banks need to be confident your existing property will sell
Full guide
This page covers the basics of bridging as a loan structure. For our full deep-dive — including how we assess whether bridging is right for your situation, what banks look for, and how to minimise the cost — see our dedicated bridging finance page.
Timing not lining up?
We've helped dozens of families bridge the gap. Let's see if it works for your situation — and if the numbers stack up.
