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How Does A Bridging Loan Work

How Does a Bridging Loan Work? Find Out Here

Ever wondered, ‘How does a bridging loan work?’
Dealing with property transactions can feel like trying to find your way through a complicated maze. Every step matters, and every decision impacts what lies ahead. At Bridgit, we’re here to make things easier to understand and accessible to everyone.
You have come to the right place if you have questions like ‘What is bridging loan?’ or ‘How does a bridging loan work?’ Whether you’re a baby boomer looking to downsize or a growing family in need of more space, read on as we explore bridging loans and explain how they work and how they can help Australian homeowners

Bridgit: Leading the way in Bridging Loans

If you have been asking, ‘How does a bridging loan work?’ Bridging loans offer a convenient solution for those looking to purchase a new property before selling their current one. Think of it as a bridge connecting you to your new home, without the wait and hassle of selling first.
Simply put, Bridgit assists by covering the costs of the new property purchase. When your existing home gets sold, the proceeds of the sale will be used to pay off the bridging loan. If a balance remains post-sale, you can easily refinance with a conventional lender.


How to apply for a bridging loan?
Dipping your toe into bridging finance? Our digital application streamlines the experience. You just have to answer some questions about your eligibility – like your personal information, details about the property in question, and your financial standing.
Our intuitive broker portal lets you track the loan’s progress, and our efficient team ensures the results of your bridging loan approval process reach you within just twenty-four hours.

How to qualify for a bridging loan?

When it comes to the question, ‘How does a bridging loan work?’ The bridging loan eligibility criteria would depend on your specific situation, like whether you’re a PAYG income earner, a retiree, or self-employed.
We base requirements on distinct scenarios: PAYG earners need six months’ consistent employment, retirees might need pension reviews, and the self-employed either provide tax returns or an accountant declaration. Reach out to us and let our dedicated team guide you through the complete documentation requirements.

Benefits of bridging loans

Avoid the traditional frenzied process of selling before buying. Bridgit can help you avoid hasty property searches and costly interim living arrangements in the meantime. You can transition smoothly without having to crash at a friend’s or juggle two mortgages. Have peace of mind, focus on securing the best deal for your old property, and let us handle the rest.
With us, getting a bridging loan for property purchase becomes an effortless endeavor, turning potential housing challenges into a smooth sailing experience

Bridgit: Pioneering Today’s Bridging Loans for Aussies

Curious about bridge loan meaning or the different bridging loans Australia has to offer? Understanding the answer to questions like ‘How does a bridging loan work? is crucial in today’s fast-paced real estate market.

Bridgit is all about helping homeowners make the leaps they aspire to. We’ve seen how many homeowners find themselves encumbered with outdated processes.
With our tech-first approach, we’ve recalibrated what a bridging loan means for Australians. By leveraging cutting-edge technology, we’ve not only hastened the approval process but also ensured homeowners aren’t left in a lurch, waiting for slow, conventional financial protocols.

Our bridge loan calculator and insights on bridging loan interest rates make things more accessible and understandable. We’ve embedded every detail within our platform, ensuring our customers aren’t left with unresolved queries.

If you ever find yourself pondering, ‘What type of bridging loan Australia-wide to get?’ or ‘How do bridging loans work?’ Talk to our dedicated lending specialists, always available from 9 a.m. to 5:30 p.m. on weekdays.
We are ready to guide, assist, and empower. Apply today!

Disclaimer: Unless otherwise specified, the opinions expressed in this article about ‘How does a bridging loan work?’ are strictly for general informational purposes only and should not be taken as financial advice or recommendations. Any views are subject to change without notice at any time.
Owner-occupied
Investor

Bridgit Bridging Loans

Buy now, sell later

Set-up fee from 0.79%
Up to 24-month loan term
Min $300K, max $10M
Up to 80% LVR
No monthly repayments
24 hour approval

Bridge Rate from

7.74% p.a.

i

Stay Rate1 from

7.04% p.a.

i
After the existing properties are sold and there is the residual loan balance remaining, the Stay Rate1 is applied.
All rates are variable.
We offer an introductory rate for the introductory period of the loan term which includes a 1% discount.
Comparison Rate^ from
All rates are variable

7.17% p.a.

i
No monthly repayments
Set-up fee from 0.79%
Min $300K, max $8M

Variable Bridge Rate

We offer an introductory rate for the introductory period of the loan term which includes a 1% discount.
We offer an introductory rate for the introductory period of the loan term which includes a 1% discount.
i

8.24

%
p.a.
Comparison rate^

8.33

%
p.a.
Apply now
Learn more about the Bridgit Loan

Bridgit Bridging Loans

Buy now, sell later

No monthly repayments
Set-up fee from 0.79%
Min $300K, max $8M

Variable Bridge Rate

We offer an introductory rate for the introductory period of the loan term which includes a 1% discount.
We offer an introductory rate for the introductory period of the loan term which includes a 1% discount.
i

8.74

%
p.a.
Comparison rate^

8.84

%
p.a.
Set-up fee from 0.79%
Up to 24-month loan term
Min $300K, max $10M
Up to 80% LVR
No monthly repayments

Bridge Rate from

8.24% p.a.

i

Stay Rate1 from

7.54% p.a.

i
Comparison Rate^ from
All rates are variable

7.67% p.a.

After the existing properties are sold and there is the residual loan balance remaining, the Stay Rate1 is applied.
All rates are variable.
We offer an introductory rate for the introductory period of the loan term which includes a 1% discount.
i
Apply now
Learn more about our rates

Get 24 hour approval

Apply nowSchedule a call

Why buy before you sell with Bridgit?

No income verification

We assess loans based on property equity and asset position.

No monthly repayments

No monthly repayments or fees for the duration of the loan term

No double mortages

We’ll pay your existing mortgage, so you don’t have to worry about two mortgages at once.

Save on temporary living

Move into your home sooner and avoid short-term rental, storage and moving costs.

No missed opportunities

Don’t miss out because of slow processes, unlock your property equity in 24 hours.

Apply nowSchedule a call

Trusted by customers
who Bridgit

Customer Service at its best.

Everyone I dealt with at Bridgit was helpful and responsive. Candice (BDM) checked in with me regularly to make sure everything was going smoothly and Andrew kept me in the loop. I recommend Bridgit highly.
- Sue Farnham

Going above and beyond for results

The priority that was placed on this file and constant updates was truly appreciated. Thank you for using common sense and finding a solution for our client’s needs on an oddly zoned security.
- Nicole Fox

Great Team

During the stressful times of obtaining Finance, the BRIDGIT Team came to thefore. We are most grateful for their advice and support.
- MTW

The team at Bridgit were remarkably talented

The team at Bridgit were remarkably talented and understands the pressing issues the situation demands. I cannot thank them enough for stepping up to a life saving situation for customers.
- Jehan Fernando

We are so happy we chose Bridgit

We are so happy we chose Bridgit over a bank. Tom, George and Ken assisted us all the way. They explained everything and made the process easy and stress free. We cannot recommend Bridgit highly enough.
- Felicity F

Definitely worth a try

If you're thinking about getting a bridging loan I'd recommend giving Bridgit a try. I found Bridgit to be way more efficient than the big banks. The communication was great too.
- Michael
Trustpilot

Get 24 hour approval with Bridgit

01

Submit application

Apply online and receive 24 hour approval. Tell us some details about yourself and see how much you can borrow.

02

Accept the offer

Accept your loan offer by making a small upfront deposit and progress your application to the next stage.

03

Purchase your property

Once we’ve valued the property and completed final verifications, sign the documents and you are on your way to settlement in as little as 48hrs*.

*Subject to the loan scenario and outgoing lender processes onrefinance (if applicable).

04

Sell

Sell your existing property and pay down your Bridgit loan. No rush, you have up to 24 months.

Apply NowSchedule a call
Frequently Asked Questions (FAQ)
How does a bridging loan differ from a regular mortgage?

For those asking, ‘How does a bridging loan work?’ Bridging loans, sometimes dubbed bridge loans or property bridging finance, are designed to bridge the financial gap between buying a new house and selling your current one. They are different from a regular mortgage. Let’s unpack the differences further:'


• Purpose: Bridging loans ease the transition between two properties. Regular mortgages are solely used to purchase a property.
• Duration: Bridging loans are a type of short-term financing, lasting a few months to a year. Regular mortgages, on the other hand, can span years and even decades.
• Interest Dynamics and Payments: Regular mortgages demand a fixed monthly commitment, and they may have lower rates due to their long-term nature. However, with Bridgit’s bridging loans, you get more breathing room. You can repay once your old property is sold and even enjoy no monthly repayments.

Do I need a deposit for a bridging loan?
To accept our conditional approval offer, you’ll need to make an initial deposit. This gesture helps move the application journey forward with Bridgit. Don’t worry, this amount will be included in the total loan and will be returned to you after your property is sold successfully.
We also have a one-time set-up fee that’s added to your loan balance. When settling, this fee is automatically subtracted from your total loan proceeds.
This means that you can rest easy knowing you won’t have to deal with monthly fees, yearly fees, or any penalties for early repayment. In fact, there’s nothing to pay until you sell your house at the end of your loan term.

Is it possible to extend the term of a bridging loan?
We want you to enjoy flexibility and convenience when it comes to managing property transitions. That is why our loans at Bridgit typically come with a generous 24-month duration, giving you plenty of time to sell your current home without the pressure of having to accept offers too quickly.

Bridging essentials

What is Bridging Finance & How does it work?
Is a type of bridge finance?
Who owns bridging finance?
What is bridging finance Australia?
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Weekdays 9am – 5:30pm

1300 141 161
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Disclaimer
‍
Eligibility and approval is subject to standard credit assessment and not all amounts, term lengths or rates will be available to all applicants. Fees, terms and conditions apply.

1 The Stay Rate will only apply if a repayment is made from the sale of Outgoing Properties (or another repayment method approved by us, at our discretion) and the repayment reduces the Amount You Owe to an amount that is equal to or less than your Residual Loan Balance.
‍
^Comparison rate is calculated on a $150,000 secured loan over a 25-year term. For Upsizer loans, a Bridge Rate applies for the first 12 months, followed by a Stay Rate thereafter. For Downsizer loans, only the Bridge Rate applies. WARNING: This comparison rate is true only for the example provided and may not include all fees and charges. Different loan amounts, terms, or fee structures will result in different comparison rates. For interest-only periods, your loan balance does not reduce, meaning you may pay more interest over the life of the loan. Set-up fee from 0.79% and government charges apply.