How Bridging Loans Work in Australia

Australian bridging loans are short-term property loans regulated under the National Consumer Credit Protection Act for owner-occupiers, or as commercial loans for investors and developers. Here's exactly how the Australian process runs.

How does a bridging loan work in Australia?

An Australian bridging loan is secured against your existing and/or new property, funded by a bank or non-bank lender in 3–10 business days, and repaid in full within 1–24 months from the sale of your existing property or via refinance. Most lenders cap the LVR at 70–80%.

1. Enquiry & assessment — broker reviews your situation, properties and timeframes.
2. Indicative offer — issued within 24 hours showing rate, fees and LVR.
3. Valuation — short-form valuation on each property (1–3 business days).
4. Formal approval — credit committee signs off, usually 24–48 hours after valuation.
5. Documentation — loan and security documents issued and signed.
6. Settlement — funds available at settlement, typically 3–10 business days from start.
7. Repayment — full repayment from sale or refinance within the agreed term.

• Major banks — limited bridging products, slow turnaround, often require pre-sale.
• Non-bank lenders — fast, flexible, regulated; ideal for most homeowners.
• Private lenders — fastest of all; used for complex or commercial deals.

• Maximum LVR: 70–80% (combined across both properties).
• Loan size: $100,000 to $5,000,000+.
• Term: 1 to 24 months.
• Security: 1st or 2nd mortgage over property.