Bridging Loans

A bridging loan exists to solve a specific problem - you've found the next property you want to buy, but your current home hasn't sold yet.

Rather than losing the property while you wait, or rushing to sell your current home under pressure, a bridging loan lets you settle on the new purchase first, using the equity in your current home as security, and gives you time to sell on a more realistic timeline.

Here's how it actually works:

• You buy the new property and once it settles, you own both your current home and your new one, with a loan covering both, until the sale of your existing property goes through.
• Peak debt is calculated upfront. This is the total amount owed while you're holding both properties, your remaining loan on your current home, plus the amount needed for the new purchase. Lenders will assess your ability to service this combined figure, even though it's temporary.
• Repayments during the bridging period are usually interest-only. Some lenders 'capitalise' this interest, meaning it gets added onto the loan balance rather than requiring repayments during the bridging period.
• The loan reduces once your current property sells as the proceeds from the sale go toward paying down the peak debt, and what's left becomes your standard, ongoing home loan on the new property.

This is exactly where having the right advice matters. We calculate your realistic peak debt and repayments before you commit. We also walk through what happens if the sale takes longer than expected, so there are no surprises partway through, and manage the transition down to your standard home loan once your existing property sells, so the whole process feels coordinated rather than something you're managing alone.