Buy before your sell | Bridging Loans | Ankush Gupta Mortgage Broker

Bridging
Loans

Bridging Loans Australia -wide with Raise The Bar Finance Team at your side.

Helping you buy before you sell, with a clearer plan and the right structure.

A bridging loan can help when the timing between selling your current property and buying your next one does not line up. At Raise The Bar Finance, we help you understand whether bridging finance is the right fit, how it works, and what the numbers look like before you commit.

This type of loan can give you more flexibility when buying your next home, allowing you to move forward without having to wait until your existing property is sold. We guide you through the key moving parts, including your borrowing capacity, loan structure, lender requirements and the costs involved, so you can make a more informed decision.

We also help simplify the process from start to finish. That includes working through concepts such as peak debt and end debt, comparing lender options, and helping you understand how the bridging loan fits alongside your longer-term finance plan. Depending on the lender and scenario, bridging finance may also allow interest to be capitalised during the loan term, which can reduce the pressure of making repayments while both properties are held.

With access to a wide range of lenders across Australia, Raise The Bar Finance helps compare bridging loan options based on more than just rate. We look at structure, timing, flexibility and overall suitability, while also helping you plan for what comes next once your existing property is sold.

faqs

Frequently Asked Questions

What is a bridging loan?

A bridging loan is a short-term loan that can help you buy a new property before your current one is sold. It is designed to bridge the gap between the purchase of your next property and the sale of your existing one.
Bridging loans are usually set up for a limited period, often around 6 to 12 months, depending on the lender and the scenario.

Should I buy or sell first?

That depends on your financial position, the property market and how much flexibility you need. A bridging loan can help remove some of the pressure by allowing you to buy before you sell, rather than having to time both transactions perfectly.
At Raise The Bar Finance, we help you assess whether this approach makes sense for your situation and how it may affect your overall finance strategy.

How does a bridging loan work?

A bridging loan allows you to move ahead with your next purchase while still holding your current property for a period of time. During that window, the loan is structured around both properties, with the expectation that your existing home will be sold within the agreed timeframe.At Raise The Bar Finance, we help you understand how the structure works, what the lender is looking for, and whether bridging finance is likely to suit your situation.

How much can I borrow with a bridging loan?

The amount you may be able to borrow will depend on your borrowing capacity, the price of the new property, the expected sale price of your current property, and the lender’s policy.
Bridging finance also involves concepts like peak debt, which is the highest amount owed while both properties are held, and end debt, which is the loan balance expected to remain after your current property is sold. We help you work through these numbers clearly before you commit.

How do repayments work on a bridging loan?

Many bridging loans allow interest to be capitalised during the loan term. This means you may not need to make regular repayments while both properties are being held, with the interest instead added to the loan balance.
The exact structure will depend on the lender and your scenario. We help you understand how repayments or capitalised interest may work before you move ahead.

What interest rates do bridging loans usually have?

Bridging loan interest rates will vary depending on the lender, your financial position and the market at the time. They may be available as variable or fixed rates, and are often higher than standard home loan rates due to the specialised and short-term nature of the loan.
At Raise The Bar Finance, we help compare lender options and explain how the rate and loan structure may affect the overall cost.

What is involved in the bridging loan application process?

The application process will usually involve assessing your financial position, reviewing your income and documents, considering the value of both properties, and checking that the overall loan structure fits within lender policy.
We help guide you through the process from start to finish, including document preparation, lender selection and working through any pre-approval or ongoing finance needs tied to the next property.