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Loan for Short Term Rental Property

Loan for Short Term Rental Property: Helpful Guide

When applying for a loan for a short term rental property, you typically have to prepare heavily to show that you can pay the monthly dues. This is different from the bridging loan you can get from Bridgit, which is specifically intended for homeowners.

What sets us apart from other online lenders is our fast and simple application process, no monthly repayments, and helpful customer support. Let’s learn more about the short term lending services of Bridgit while going through the details of increasing your chances of obtaining a loan for short term rental property.

Rental property loans vs. bridging home loans

Bridgit’s bridging home loans are beneficial to homeowners who want to sell their homes to buy a new one. They can use the loan to make the purchase as they bid their time while considering what options they have for selling an old property.

Our process is what makes us stand out from traditional lenders; we focus on a ‘tech first’ approach. By eliminating manual processes from application to approval, we provide clients with decisions in real time.

This kind of loan has minimal requirements compared to bridge financing loans for rental properties. The latter typically ask for larger down payments and have higher interest rates. You will also need to provide different financial documents and proof that you are capable of paying your monthly dues for a year or so.

Disclaimer: Unless otherwise specified, the opinions expressed in this article 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.
Downsizing
Upsizing

Residential Bridging Loan

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

8.24

%
p.a.
Comparison rate^

8.33

%
p.a.

Bridge Rate from

7.99

%
p.a.
All rates are variable.
We offer an introductory rate for the introductory period of the loan term which includes a 1% discount.
i
Comparison Rate^ from
All rates are variable

8.08

%
p.a.
Apply now
Up to 12 month loan term
Up to 80% LVR
Owner-occupied, investment

Residential Bridging Loan

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.

Bridge Rate from

7.99

%
p.a.
The Bridge rate applies at the start of the loan term. All rates are variable.
We offer an introductory rate for the introductory period of the loan term which includes a 1% discount.
i

Stay Rate1 from

7.04

%
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
Comparison Rate^ from
All rates are variable

7.19

%
p.a.
Apply now
Up to 12 month loan term
Up to 80% LVR
Owner-occupied, investment

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 12 months.

Apply NowSchedule a call
Frequently Asked Questions (FAQ)

What is a short-term rental property loan?

A loan for short term rental property is a type of financing specifically used to purchase or refinance properties that will be rented out for short periods. They cater specifically to the needs of investors looking to capitalise on short-term rental opportunities, such as vacation homes and Airbnb properties.

This rental property loan is different from traditional short term mortgages. This short term loan is a quick loan that often considers the potential rental income from the property when determining how much money you can borrow.

What types of properties qualify for short-term rental property loans?

Many types of properties fit the bill when it comes to qualifying for short term property funding for a rental loan. This includes vacation homes, condominiums, and other dwellings intended for short-term leasing.

If you are considering applying for a loan for short term rental property, here are some situations when it might be a good idea to consider one:

Add more properties to your business. In this case, you will use the short term loan capital for property investment to expand your portfolio of properties for rent. You can use the income from your existing properties, plus the probable income from the ones you’re planning to add, to qualify for a bigger loan.

Different lenders have varying eligibility criteria for holiday home financing or a rental property acquisition loan. As a borrower, you must do your part in researching and understanding the requirements for rentals and other alternative home loan options.

Renovate a property you already own. If you have a property you think you could earn more from after some updates, a loan for short term rental property can cover these costs. Renovating will likely boost the rentals you earn from this property.

Use the property funding to buy a new vacation home for rent. You can use a short term loan as a vacation rental loan when you find a property with good potential to earn when used for short-term renting.

Meanwhile, if you’re searching for ‘short term home loans Australia’ you can use for single security bridging, such as a new property, retirement homes, or land lease, Bridgit offers a fast and hassle-free application.

How can I improve my chances of getting approved for a short-term rental property loan?

Your chance of getting approved for a loan for short term rental property depends on the criteria of the lender. Two of the most common financing options available for rental property funding are bank loans and agency loans.

Aside from studying the lender’s criteria, it will also help to do the following to increase the likelihood of securing a rental property financing loan:

Prove you can afford to pay. Prepare your financial documents – everything that can help you qualify for instant approval financing. These can include your tax returns and pay stubs for the last two years. Be ready to explain your capability to cover the monthly payments for the new property from any income gained from existing rental properties and your personal income.

Boost your credit score. A loan for short term rental property has different terms compared to a short term home loan, which typically has a lower standard of credit rating.

Prove you have enough cash on hand. It will increase your chances of getting approved for a short term mortgage for a rental property if you have enough cash savings to cover six to twelve months of expenses in addition to what you will use as a down payment.

On the other hand, Bridgit offers short term lending for home loans without the same hassles you will experience from other lenders when applying for a loan for short term rental property. Aside from flexible pricing, you can expect an approval offer in twenty-four hours.

Bridgit: reshaping the landscape of Australia’s home financing

At Bridgit, we follow a motivating force: ‘Made for Today.’ This shows our commitment to helping Aussie homeowners understand the values of their properties and enabling them to secure their dream homes without feeling the pressure of selling first.

Moreover, we employ the latest technological advancements to streamline the loan approval process, making it faster, more efficient, and less cumbersome for our customers. This technology-first mindset allows us to provide rapid solutions, but it’s about more than just speed.

It enables us to lighten the operational load, ensuring that our team can focus on what truly matters: efficient customer service and support. Bridgit is here to ensure that your journey to acquiring your next perfect property is smooth, swift, and stress-free.

If you are currently looking for ways to bridge your home finances, don’t hesitate to get in touch with us. Submit an application at Bridgit today!

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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.