Upgraders
Moving to a bigger home while your current home is on the market.
Bridging loans: buy before you sell.
Found the right home but haven't sold yet? A bridging loan lets you buy first and sell afterwards, without a rushed sale. We work out the numbers and the risks before you commit.
Who it suits
Downsizers
Securing your next place before selling the family home.
Relocating
Buying in a new area before your current home sells.
How it works
- We estimate what your current home will sell for and what you'll owe.
- We calculate the peak debt (both properties) and the end debt (after the sale).
- We find a lender whose bridging terms and sale period suit you.
- You buy the new home; the bridging period starts.
- When your home sells, the proceeds reduce the loan to the end debt.
What lenders look at
- A realistic sale price for your current home, often with a valuation
- The end debt you'll keep after selling, which you must be able to repay
- How long you'll need to sell (often 6 to 12 months)
- Whether interest is paid monthly or added to the loan
Good to know
Be conservative on price
If your home sells for less than expected, the end debt is higher. We test a lower sale price too.
Interest adds up
Interest is usually charged on the full peak debt until your sale settles.
Alternatives
A longer settlement, a deposit bond or selling first may be cheaper. We compare the options.
Common questions
How long can a bridging loan run?
Usually 6 months for an established home and up to 12 months if you're building, depending on the lender.
Do I make repayments during bridging?
It varies. Some lenders add the interest to the loan; others require monthly payments. We explain the cost of each.
What if my home doesn't sell in time?
The lender may extend the period, require a price reduction or ask you to refinance. We discuss this risk before you start.
Related
General information only, not credit, tax or financial advice. Every lender has its own criteria and approval is never guaranteed.
Talk to us about bridging loans.
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