Bridging Loan Interest Rates in Australia

Bridging loan interest rates in Australia typically sit between 7% and 12% p.a. for owner-occupiers and 9–18% p.a. for commercial or higher-risk deals. Your actual rate depends on LVR, exit clarity and lender type.

What are typical bridging loan interest rates in Australia?

Most Australian bridging loans price between 7% and 12% p.a. for residential owner-occupier deals, and 9% to 18% p.a. for commercial, development or private-lender deals. Rates are quoted monthly (e.g. 0.7%–1.5% per month) and assessed per deal.

• Bank-funded closed bridging: 7.0% – 9.0% p.a.
• Non-bank residential bridging: 8.5% – 11.0% p.a.
• Open bridging (no contract of sale): 9.5% – 12.0% p.a.
• Commercial / development: 10% – 15% p.a.
• Private / second mortgage: 12% – 18%+ p.a.

1. LVR — lower LVR (more equity) = lower rate.
2. Exit clarity — signed contract of sale beats "we'll list it next month".
3. Property type & location — major-city residential is cheaper than rural commercial.
4. Loan size — very small loans (sub-$200k) often price higher per dollar.
5. Borrower profile — clean credit, PAYG income improves pricing.

Get a signed contract of sale on your existing property if you can, keep the LVR under 65%, and have a broker compare 5+ lenders rather than going to one bank. We routinely save Brisbane clients 1–2% p.a. just by comparing the right lender panel.