Buying
Property Purchase Bridging Buy your new home before your current one settles. Auction Finance Pre-approved funds so you can bid with confidence.Timing & value
Settlement Gap Finance Cover the overlap when settlements don't align. Renovation Loans Fund improvements before refinancing to a bank.Commercial
Business Bridging Short-term capital for cash flow and stock. Development Finance Subdivisions and small developments, funded fast.Not sure which fits?
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Get a quote →The basics
What is a bridging loan? How bridging finance works Open vs closed bridging Bridging vs home loan Buy before you sellCosts & criteria
Interest rates & fees Eligibility & LVR Peak debt vs end debt Exit strategies explained Glossary of termsStart here
The complete bridging finance Knowledge Hub
Quick answers, costs, eligibility, peak debt vs end debt and a full glossary — in one place.
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Bridging loan interest rates in Australia
What actually sets your rate, what the fees really are, and what capitalised interest costs over three, six and twelve months.
Last reviewed 9 August 2026 · Bridging Loans Brisbane lending teamShort answer
Bridging loans are priced per deal, not from a rate card. Expect a rate above a standard home loan, an establishment fee around 1–2% of the facility, plus valuation and legal costs — and no upfront application fee. Because interest is usually capitalised, the number that matters is total cost to exit, not the headline rate.
What drives your bridging rate?
Five factors move the price. Change any one of them and the quote changes — which is why two borrowers with the same loan amount can be priced quite differently.
Quality of the security
A standard house in an established Brisbane suburb prices better than vacant land, a unit in a large complex, or specialised commercial property. Marketability at valuation is what the lender is really assessing.
Combined LVR
The lower your loan against the combined value of both properties, the sharper the pricing. Moving from 78% to 65% by adding a cash contribution or a second security can change the quote materially.
Certainty of the exit
A signed unconditional sale contract with a settlement date is the cheapest exit there is. An unlisted property with an appraisal instead of a contract is the most expensive.
Term you actually need
Short is not automatically cheaper. Setting a three-month term on a property that needs a six-week campaign plus a thirty-day settlement invites extension fees that cost more than the longer term would have.
Complexity of the structure
Company or trust borrowers, multiple securities, cross-collateralisation, construction draws and second mortgages all add assessment work, and that shows up in the price.
The full cost list
Every line below appears in your written quote before you commit. If a lender won't itemise these, that is your answer.
Capitalised vs serviced interest
Short answer: capitalised interest is added to your balance and cleared at settlement, so you make no monthly repayments. Serviced interest is paid monthly like a normal loan. Capitalising protects cash flow; servicing keeps the balance flat.
Most buy-before-you-sell clients capitalise, because paying two mortgages for six months is exactly the problem they came to solve. The trade-off is that the balance compounds gently over the term, so the length of your bridge matters as much as the rate.
How to compare two bridging quotes
Six checks. Run them on both quotes and the cheaper option is usually obvious — and it is often not the one with the lower rate.
Rate questions, answered
Why are bridging loan rates higher than home loan rates?▼
Bridging lenders price for speed and a short horizon. They fund in days rather than weeks, hold security over two properties, and are repaid from a sale rather than decades of income — so the margin covers that concentrated risk and the cost of fast capital.
What is capitalised interest on a bridging loan?▼
Capitalised interest is added to the loan balance instead of being paid monthly, then cleared when your property sells. It means no monthly repayments during the bridge, but the balance grows each month, so a longer term costs more even at the same rate.
Are there upfront fees on a bridging loan?▼
There is no upfront application fee. Establishment fees of roughly 1 to 2 per cent of the facility, valuation costs per property and legal fees are disclosed in writing before you commit and are usually deducted at settlement.
How do I compare two bridging loan quotes?▼
Compare total cost to exit rather than the headline rate: interest for the realistic number of months, plus establishment, valuation, legal, extension and discharge costs. The lower rate frequently loses once the fees are added.
Does the rate change if my sale takes longer?▼
The rate itself normally stays fixed for the agreed term. What changes is the total interest, because it accrues for longer — and an extension may carry a fee. Tell us early and it is usually arranged without drama.
The rest of the bridging finance cluster
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The complete bridging finance guide
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