Bridging Loans

Typically 6-12 months, though some lenders will extend to 18 months for open bridging if your sale is taking longer than expected. The loan term is set at approval—if you need to extend beyond that, you’ll need lender approval (and possibly a revaluation of the unsold property). Most clients we work with settle their bridging loan within 8-12 weeks because they had a realistic sale timeline before they started.

Yes—that’s open bridging. The lender will typically require you to list the property within 30 days of the bridging loan settling, and they’ll want evidence of a competitive asking price (usually supported by a recent valuation or agent appraisal). Approval is tighter than closed bridging because there’s no buyer committed yet, but it’s definitely doable if you have strong equity and serviceability.

If your sale drags beyond the bridging loan term, you’ll need to extend the facility (lender’s discretion) or refinance the full amount into a standard loan across both properties—which means carrying two mortgages until the sale completes. That’s expensive and stressful, which is why Andy only recommends bridging finance when your sale strategy is solid and the equity buffer can absorb a few months’ delay. We model the worst-case scenario before you commit.

Most bridging loans are interest-only, and many lenders let you capitalise the interest (add it to the loan balance each month rather than paying it out of pocket). That reduces your immediate cash flow pressure while you’re holding two properties. Once your old home sells and the bridging portion is repaid, the remaining loan on your new property reverts to standard principal-and-interest repayments (or interest-only if you’ve structured it that way).

Lenders typically want you to retain at least 20% equity in your existing property after the bridging funds are drawn. So if your current home is worth $600,000 with a $300,000 loan, you’ve got $300,000 equity—the lender will let you access around $180,000-$210,000 for bridging (depending on their LVR cap), leaving you with $90,000-$120,000 equity still sitting in the property. If you don’t have that cushion, bridging finance becomes riskier and harder to approve.

You can use bridging finance for just the deposit and stamp duty if that’s all you need—then roll the rest into a standard home loan on the new property. Or you can bridge the full purchase price if your equity and borrowing capacity allow it. The structure depends on how much you’re borrowing overall and what your income can service. Andy models both scenarios so you can see which one keeps repayments manageable.

Yes—rates are 1.5-3% higher, and the interest is charged on the full bridging amount for the entire bridge period. But the cost is temporary (usually 6-12 weeks of actual interest once your sale settles), and when you compare it to the opportunity cost of missing the property you want or selling in a rush for $30,000 less, the bridging interest often pays for itself. Andy breaks down the real dollar cost so you can make the call with numbers, not guesswork.

Yes, but lenders will assess your income and equity the same way they do for any home loan—so you’ll need recent financials (usually two years’ tax returns or business activity statements) and enough equity to cover the bridge. Self-employed borrowers often find bridging finance easier to approve than a second full home loan because the bridge is short-term and secured against existing property equity. Andy arranges these regularly for Mandurah and Perth business owners who need to move quickly between properties.

Bridging finance is for buying an existing property while you’re still selling another one. Construction loans release funds in stages as your build progresses (slab, frame, lock-up, completion). You can combine the two—use bridging finance to cover the land purchase or deposit, then roll into a construction loan once your old property sells—but they’re separate structures with different approval criteria. Andy can map out the sequencing if you’re building rather than buying established.

Not for open bridging—you can get approved while your property is listed but not yet sold. For closed bridging, yes, you’ll need a signed contract with a settlement date so the lender knows exactly when they’re getting repaid. Closed bridging is cheaper and easier to approve, but open bridging gives you more flexibility to act before a buyer commits.

Yes—you can bridge from your owner-occupied home to buy an investment property, or from one investment property to another. The structure and approval criteria are the same (equity, serviceability, exit plan), but the tax treatment differs because investment loan interest is deductible. Andy walks through the numbers with your accountant’s tax position in mind so the structure works financially and at tax time.

For straightforward cases—good equity, clean credit, employment income—approval typically takes 5-10 business days once the application is lodged. Settlement can happen as fast as 7-14 days if all the valuations and paperwork line up. Speed depends on lender workload, valuer availability, and how quickly your solicitor can turn around the contracts, but bridging loans are designed for time-sensitive situations so lenders prioritise them. Andy keeps the process moving so you don’t miss your settlement date.