How Bridging Finance Works

What is a bridging loan?

A bridging loan is short-term finance secured against property that covers the gap between buying and selling. It lets you settle on a new property before your existing one sells, then is repaid from the sale proceeds or by refinancing to a mainstream lender.

Because the lender is pricing speed and a short horizon rather than a 30-year relationship, the assessment looks different: your security and your exit matter more than your payslips.

At a glance

How the money actually moves

A worked example: you own a $1.25M home with a $420K mortgage and you're buying at $1.6M before your sale settles.

Interest rates & fees

Bridging finance is priced on risk, not on a rate card. Three things move your number: the quality of the security, the LVR, and how certain the exit is. Rates sit above standard home loans because the facility is short-term and funded fast.

Interest is often capitalised into the facility, so there are no monthly repayments while both properties are held. Every cost below is quoted in writing before you commit.

Eligibility & LVR

If you have real equity in Queensland property and a credible way out, you're likely eligible. Credit history matters far less than it does with a bank.

The most important part

Your exit strategy

An exit strategy is simply how the loan gets repaid. Because the term is short, this is the single biggest factor in whether a deal is approved — and at what price.