Bridging Loan Eligibility in Australia

Bridging loans are easier to qualify for than a standard mortgage because lenders focus on your property security and exit strategy — not just your income. Here's exactly what you need.

Who is eligible for a bridging loan in Australia?

You're typically eligible if you own (or are buying) property in Australia, have at least 20–30% equity available across the properties involved, and have a credible exit strategy — usually the sale of an existing property or a refinance to a long-term loan.

1. Australian property security — residential or commercial, in any state.
2. Sufficient equity — combined LVR of 70–80% or less.
3. Credible exit — property sale, refinance, or development sell-down.
4. Acceptable credit history — past defaults aren't automatic deal-breakers.
5. Ability to service end debt — if you're rolling to a long-term loan.

During the bridge itself, many lenders capitalise interest — so you don't need to service the bridging loan from income. However, lenders still assess your ability to service the end debt (the long-term mortgage on the new property after the bridge ends), using standard affordability tests.

Bridging lenders are more flexible than banks. Defaults, judgements or previous arrears don't automatically disqualify you — the lender weighs them against the strength of the property security and the clarity of your exit.