How much does a $500,000 bridging loan cost?

At 1.2% per month over 6 months, interest is ~$36,000, plus ~$10,000 establishment fee and ~$3,000 in legals — a total cost of around $49,000. Use our calculator to model your exact scenario.

Are bridging loan interest rates higher than home loans?

Yes. Bridging finance is short-term and unsecured by your future sale, so monthly rates of 0.8–1.5% (≈10–18% p.a.) are common. The shorter term means total interest is usually manageable.

Can I capitalise the interest?

Often yes. Many bridging lenders let interest accrue into the loan balance so there are no monthly repayments — the full amount is repaid at exit from sale proceeds.

Are there hidden fees?

No. All fees — establishment, legals, valuation, discharge — are disclosed up front in your letter of offer. We never charge brokerage to the borrower.

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How Much Does a Bridging Loan Cost?

Most Australian bridging loans cost between 0.8%–1.5% per month in interest, plus a 1–2% establishment fee and standard legals. Here's the full breakdown and a worked example.

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Bridging Loan Fee Breakdown

Cost	Typical Range	Notes
Monthly interest rate	0.8% – 1.5% per month	Equivalent to ~10–18% p.a.
Establishment fee	1% – 2% of loan amount	One-off, paid at settlement
Legal & valuation	$1,500 – $3,500	Paid to third parties
Discharge fee	$300 – $800	Paid at exit

Worked Example: $500,000 over 6 Months

Loan amount$500,000
Monthly interest @ 1.2%$6,000
Total interest (6 months)$36,000
Establishment fee (2%)$10,000
Legals & valuation~$3,000
Total cost~$49,000

Illustrative only. Run your own scenario in the loan calculator.

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