1. Peak debt
The combined balance of your existing loan plus the new purchase loan — this is your "peak debt" position during the bridging period.
Bridging finance
When buying timing matters more than selling timing
You've found the next home. The auction is in three weeks. Your current home is sale-ready but not yet listed. Without bridging finance, you're forced to sell first, rent in the gap, and hope you find the right next property before the bridging period expires.
With proper bridging finance, you secure the new property now, your current home sells in its own time at the right price, and the loan is restructured at the end of the bridging period to reflect your final post-sale position. No rushed sale, no rent-in-the-middle, no double-loan stress.
Bridging lender selection is critical. Some lenders assess bridging "fully serviceable" — meaning you need to qualify on both loans simultaneously, which most borrowers can't do. Others assess on "peak debt" — only the end-position debt — which is the structure we usually target.
How it works
The mechanics of bridging
2. End debt
The expected balance after your existing property sells and proceeds are applied to the new loan. This is what the lender assesses you against for serviceability.
3. Bridging term
Typically 6–12 months. Lender may capitalise interest during the bridging period (rolling it into the loan balance) or require interest-only servicing.
4. Sale & reset
Existing property sells, net proceeds apply to the loan, peak debt reduces to end debt, and you continue with a normal home loan structure going forward.
When bridging fits
When bridging finance is the right move
The right property has appeared
You weren't actively looking, but the perfect next home has come up. Bridging lets you act without forcing a panic sale.
Auction timing doesn't match
Strong auction market means buying is competitive — you can't afford to sell first and then enter a buyer's race with cash in hand. Bridging removes that risk.
You want to renovate before moving
Buy the next home, renovate while still living in the existing one, move in after renovations complete. Bridging period covers the gap.
Sale price uncertainty
Avoid distressed-sale pricing on your existing home. Sell it at the right time in the market rather than rushing to match a settlement date.
Avoiding rental gap
Moving into a rental between sale and next purchase costs money, time and stress. Bridging eliminates the interim rental requirement entirely.
Estate or downsizing situations
Estate property sales and downsizing transitions often benefit from bridging — flexibility on timing of the larger asset sale.
Client stories
Real outcomes for real clients
★★★★★
"The team made what felt like a daunting process completely manageable. We secured a rate the bank wouldn't touch directly and were in our first home eight weeks later."
★★★★★
"After years of being told no by the majors for our self-employed structure, MortgageHQ found a solution. Approval came within a fortnight and on competitive terms."
★★★★★
"We refinanced our commercial property and unlocked equity for a second purchase — they structured the whole deal across two lenders. Saved us hundreds of basis points."
Answers
Bridging finance — frequently asked questions
How is interest charged during the bridging period?
Two main approaches: (1) capitalised — interest is added to the loan balance each month and paid down when the existing property sells; (2) interest-only — you pay interest each month during bridging and the principal reduces when the existing property sells. Capitalised is more flexible cashflow-wise but increases the end debt by the accrued interest.
How long can the bridging period last?
Most lenders offer up to 6 or 12 months. Extensions are possible but require evidence of genuine sale efforts and may attract higher rates. We structure timeframes generously to avoid the stress of a forced sale at the end of the bridging period.
What if my existing property doesn't sell during the bridging period?
The lender will work with you on extension if you're making genuine efforts to sell. Worst case, the loan converts to a standard structure with the existing property held as security alongside the new home — you'd need to qualify for full serviceability on the combined balance at that point, which is less than ideal but workable.
How much can I borrow on bridging finance?
Up to 80% of peak debt with most lenders — peak debt being the combined value of both properties. Some lenders cap at 75%. Your borrowing capacity is assessed against expected end debt (post-sale of existing property), not peak debt, which is what makes bridging accessible to most borrowers.
How quickly can bridging finance be arranged?
Faster than standard refinancing in most cases. Specialist bridging lenders can decision within 5–7 business days; some non-bank specialist bridging lenders deliver same-week decisions on clean files. Auction timeframes are routinely accommodated.
Is bridging more expensive than standard home loan finance?
Slightly — but the differential has narrowed. Bridging rates are usually 25–75bps above standard variable home loan rates. There are also establishment fees and potentially valuation costs for both properties. We model the total cost against the alternative (rented gap, rushed sale, lost purchase opportunity) so you can see the real economics.
Get in touch
Let's start the conversation
No obligation. Completely confidential. We'll respond within one business day to set up a no-pressure initial chat about your goals and the lending options available to you.
- Free initial consultation — no fees to talk
- Access to 60+ lender panel including major banks
- 25+ years of broker experience on every file
- We work with your accountant and advisers
Get in touch
Book a free consultation
Tell us a little about your situation and we'll be in touch within one business day. No obligation, completely confidential.
Ready for a smarter finance conversation?
Tell us about your situation — first home, refinance, commercial, SMSF or anything in between. We'll find the right structure across 60+ lenders. No obligation, completely confidential.