Bridging the Gap

Get into your dream home sooner

Bridging the Gap

Get into your dream home sooner

Bridge the Gap

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What is Bridging Finance?

Found your dream home, but haven’t sold your current property yet? Rather than miss the opportunity, consider a Bridging Loan.

What is a Bridging Loan?

Just as it sounds, a Bridging Loan can assist you bridge the gap between the finance of your current property and your next property purchase. Designed as a short-term finance solution, a Bridging Loan can be an ideal solution to secure your property purchase while still selling or settling the sale of your existing property. Generally, a Bridging Loan will give you up to 6 months to sell your existing home, or up to 12 months to complete construction of a new home.

How does it work?

In simple terms, Lenders take over the mortgage of your current property and finance the purchase of your new property. The debts are combined and if required, can also include any additional purchase costs that may be associated with your new home like stamp duty and legal fees. Repayments of the combined debt are often calculated at interest only. When the first home is sold, the net proceeds will be used to reduce what had become the combined debt value. The outstanding debt amount, then becomes your new mortgage from then on.