Can I Get a Bridging Loan With an Existing Mortgage?

Yes — and it's actually the most common scenario. Most homeowners using bridging finance still have a mortgage on their existing property. Here's exactly how lenders structure it.

Can I get a bridging loan if I already have a mortgage?

Yes. Australian lenders routinely fund bridging loans secured behind (or alongside) an existing mortgage. The combined LVR across all properties typically needs to stay below 70–80%, and your existing mortgage repayments continue as normal during the bridge.

1. Refinance + bridge: the new lender refinances your existing mortgage and funds the bridge as one combined facility. Cleanest structure, often the lowest rate.
2. Second mortgage: your existing mortgage stays in place; the bridging lender takes a second-ranking mortgage. Faster but higher rate.
3. New property only: the bridge is secured against just the new purchase, leaving your existing mortgage untouched. Used when there's enough equity in the new property alone.

Lenders look at the combined LVR — total debt across all properties divided by their combined value. Most cap this at 70–80%. Example: existing home worth $800k with a $300k mortgage (37.5% LVR) + new home $900k = $1.7M total value. Maximum total debt at 80% LVR is $1.36M, so you could borrow up to roughly $1.06M on top of the existing $300k mortgage.

When your existing property sells, the proceeds typically pay out both the existing mortgage and the bridging loan in one transaction at settlement. What's left becomes your end debt — the long-term mortgage on the new property.