Bridging Finance Knowledge Hub | Brisbane Guide
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Bridging finance, explained properly

Everything a Brisbane buyer, investor or business owner needs to understand short-term property finance: how a bridging loan works, what it costs, who qualifies, how peak debt becomes end debt, and how to pick an exit strategy that holds up.

Last reviewed: 9 August 2026 Written by the Bridging Loans Brisbane lending team Reading time: about 12 minutes

The short version

A bridging loan is short-term finance secured against property that lets you buy before you sell. In Brisbane, facilities typically run $100K–$5M at up to 75–80% LVR, over 1–24 months, with a decision in 24–48 hours. Interest is usually capitalised, so you make no monthly repayments; the facility is cleared when your existing property settles.

On this page

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Quick answers

Straight answers to the eight questions we're asked most

Each answer is complete on its own — read only the ones you need, then follow the link for the detail.

Bridging loans at a glance

The parameters below reflect facilities we arrange across Greater Brisbane and South East Queensland. They are indicative ranges, not a quote — your own numbers depend on the security, the LVR and how certain your exit is.

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Four reading paths

Start where your question sits. Every path ends with a calculator or a call — those are the only two ways to get a real number.

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How does a bridging loan actually work?

Short answer: the lender takes security over both properties, funds your new purchase in full, and rolls your existing mortgage into one facility. You hold both homes for a period, then your sale proceeds pay the facility down to a normal home loan.

Mechanically it happens in four moves, and the language lenders use maps onto each one.

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Worked example

You own a Bulimba home worth $1.25M with $420K owing, and buy in Hawthorne for $1.6M. Peak debt lands near $2.05M including fees. Over six months at an indicative 9.5%, capitalised interest is roughly $97K. Your sale nets about $1.22M after selling costs, leaving an end debt near $925K — the loan you refinance to a standard home loan.

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What does bridging finance cost in Australia?

Short answer: expect a rate above a standard home loan, an establishment fee of roughly 1–2% of the facility, plus valuation and legal costs — and no upfront application fee. Interest is usually capitalised, so the real question is total cost over the months you need, not the headline rate.

Three variables move your pricing: how good the security is, how high the LVR sits, and how certain the exit is. A closed bridge with a signed unconditional contract prices sharper than an open bridge on an unlisted property, every time.

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One comparison worth running: the cost of bridging for four months versus selling first and renting. Rent, two moves, storage and re-entering a rising Brisbane market often exceeds the interest bill — which is the honest reason most of our clients bridge.

Bridging loan vs the alternatives

Four ways to solve a timing problem, and what each one really costs you.

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Who qualifies for a bridging loan?

Short answer: if you hold real equity in Queensland property and can evidence how the loan gets repaid, you are likely eligible — as an individual, trust or company. Serviceability and credit history matter far less than they do at a bank.

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The one thing that will stop an application is an exit that doesn't stand up — an optimistic price, no listing plan, or a refinance no lender would write. We test that first, on the phone, before anyone pays for a valuation.

Five mistakes that cost Brisbane buyers money

Every one of these has walked through our door in the last twelve months.

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Local context

Why bridging behaves differently in Brisbane

Queensland runs a heavy auction calendar in the inner east and north, and contracts here commonly carry short, firm settlement dates. That combination — an unconditional purchase before your own place is listed — is exactly the gap bridging finance was built for.

Local valuation knowledge matters too. An approval based on an optimistic appraisal falls over at valuation; one priced against genuine comparable sales in the same street holds up to settlement.

See auction finance →
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Glossary: the words lenders use

Fourteen terms that appear in every bridging conversation, in plain English.

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More questions, answered

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How this guide is written and maintained

Every figure here is an indicative range drawn from facilities we have arranged for Brisbane and South East Queensland clients — not a rate card, and not a credit quote. Ranges are reviewed quarterly and whenever funding conditions shift materially.

Where a number depends on your circumstances, we say so rather than publishing an average that misleads. Bridging finance is priced per deal; anyone quoting a single rate online is guessing.

Queensland practice is assumed throughout: the standard REIQ contract, a five-business-day statutory cooling-off period on residential contracts other than at auction, no cooling-off or finance condition on auction contracts, mortgages registered under the Land Title Act 1994 (Qld), and transfer duty administered by the Queensland Revenue Office.

Written by: the Bridging Loans Brisbane lending team, 4/144 Edward St, Brisbane City Last reviewed: 9 August 2026 · Next review: November 2026 General information only. It does not account for your objectives, financial situation or needs, and is not credit advice.
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