The Brokers Brief – Bridging Finance

Ever had a client miss out on their next home because they hadn’t sold yet? Let’s break down how bridging loans can solve that problem — and when they actually work.

A bridging loan allows your client to purchase a new property before selling their existing one. It gives them flexibility, removes pressure to sell quickly, and is especially useful for those clients with restricted borrowing capacities.

It’s not as risky or confusing as many people think — when structured properly, it can be a game changer.

Here’s how brief overview on how Bridging Finance works:

1. Buy First, Sell Later

• Your client gains preapproval for the Bridging Finance
• Client than secures their new home now
• Then has 6–12 months to sell their existing property
• Ideal for upgraders, downsizers, relocators

2. During the Bridging Period

• Some lenders offer interest-only repayments during the bridging term
• Some lenders will only charge repayments based on the ‘end debt’
• Provides lower repayments while the client manages both properties

3. “End Debt” Calculated Up Front

• The loan is assessed based on the final loan amount after the sale
• Clients must show they can service the ongoing debt post-sale

4. Strong Equity Is Key

·         Bridging works best when there’s solid equity in the existing home

·         We’ll do the maths and structure the deal to protect cashflow and reduce risk

✅ Success Story – Bridging Saves the Deal

A real estate agent referred a couple who had found their dream acreage property — but hadn’t yet listed their home. They had over $400K in equity, so we arranged a bridging loan with interest-only repayments, giving them time to sell without stress. They listed two weeks later, sold in eight — and walked into their new home without needing to rent in between or take a rushed offer.

Click below to watch the video and learn more;