FAQs about Bridging Loans

Bridgit Loans

I’ve completed my online application, what’s next?

Sit tight! Our technology works around the clock to ensure a fast turnaround, meaning you could be approved for a Bridgit loan in just 24hrs.
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After submitting your application, you will also gain access to our customer portal, where you can see live updates and check the status of your loan application at any time.

I have sold my home, how do I repay my loan?

Repaying your loan with Bridgit is simple. After you have sold your existing property, please complete our discharge form which can be found in your portal. To complete the process, you may need to share some documents to support the sale of your home. It’s important to submit the discharge request as soon as possible as we may need up to 5 business days to process the discharge request.
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If you downsized (there won’t be a loan balance remaining after the sale of your property), Bridgit will immediately release security over all properties.
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If you upsized (there may still be a remaining loan balance after the sale of your property), we will partially discharge your Bridgit Loan. This means we release security of the property you have sold, and you will need to refinance the outstanding balance with an alternate lender who can provide you with a longer term mortgage.

Does Bridgit offer second mortgages?

No. Bridgit loans can only be used for first mortgages. If you have an existing mortgage, your Bridgit Loan will cover your existing mortgage so we can refinance it.

Do I need to sell my house to get a Bridgit loan?

A Bridgit Loan lets you buy a new property before selling your existing, creating a ‘bridge’ between financial situations and giving you plenty of time to find your next dream home without rushing the process. To pay out or ‘settle’ your Bridgit Loan, you will need sell your existing property within the 12 month loan period. In certain cases, if you have additional funds to pay off the loan, you can still qualify for a loan.

What are the income requirements for a Bridgit loan?

Whether you are self-employed, retired, or a standard income earner, as an inclusive lender, we lend to everyone. The requirements will look different depending on your unique loan scenario:

PAYG income:
- 6 months continuous employment
- Evidence of 2 months’ pay

Retiree with income:
- Pension and super income may be reviewed if upsizing

Retiree with no income (downsizing only):
- No income verification required
- Pension and super income may be reviewed

Self employed:
Full doc -Tax returns for 2 years
Alt doc - Accountant declaration
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Note: Income is only assessed and verified for end debt loans. Get accredited today to view our full list of supporting documents.

I have received conditional approval. Under what circumstances could my loan no longer qualify for unconditional approval?

We always do our best to help and support you throughout the application process and are extremely thorough with loan assessments at the early stages to ensure this does not happen. However, in the rare circumstance that your loan may no longer qualify for unconditional approval, this can be due to the following circumstances:
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- The supporting documents supplied do not support the information you have provided in the application.
- The valuation completed on your existing property is not acceptable for lending purposes (property noted as poor condition/damage to the property etc), or the value noted to the valuation does not meet the estimate you have provided.

What happens if I sell my property before the 12 month life of the loan?

The first month of your Bridgit Loan is entirely interest free! Meaning, after the set-up fee is deducted from the total loan amount, no interest needs to be paid during this time. We calculate your interest in advance and include it in the total loan amount. This means you don’t have to worry about making monthly repayments during your loan term. If you repay your loan early, your interest will be recalculated and your repayment amount reduced to reflect your actual term. There are no exit fees applicable for ending your bridging loan prior to the end of the 12-month term.

How do I sign the documents?

Your documents will be sent to you via email and will need to be signed electronically. In some cases, you will need to sign by ink depending on what state your property is located. We make sure to be clear if there's a particular document that requires a handwritten signature.

What determines my valuation fee?

Your valuation fee can be determined by a number of things including:
- Size of the property- Location
- Number and types of rooms
- Fixtures and fittings
- Building structure and condition
- Ease of access, such as easy vehicle access and a garage
- Local council zoning- Recent sales in the area and market conditions

What is a bridging loan in Australia?

A Bridging loan in Australia is a solution that allows homeowners to buy a new home before they have sold their existing property. The loan is secured against the property being purchased and the one being sold, when you have sold your home you repay the bridging loan

Bridgit is a specialist bridging loan lender in Australia, we simplify the bridging process by providing a 5 minute application, 24 hour approvals, a 1 month interest-free period and a customer service team to support you the entire way.

How is a bridging loan calculated?

A Bridging loan is calculated by taking the amount you need to purchase, excluding the deposit, and any existing mortgage on the property you are selling. You simply add the mortgage to the property sale price to calculate the bridging loan amount.

Use our bridging loan calculator to calculate your loan amount, or contact our team who can provide you guidance regarding your specific scenario.

What is the difference between the introductory rate and bridging rate?

Bridgit offers an introductory interest rate for the first 6 months of the loan term. At the end of month 6, the interest rate increases to the bridging rate for the remainder of the loan term. However, if a minimum repayment of 40% of the total loan amount is made (e.g. through sale of property) prior to the end of month 6, the introductory rate will remain effective until the end of the loan term.

Partners

What documentation do my clients need?

After confirming conditional approval offer, clients or brokers provide supporting documents to Bridgit to verify the client’s identity and any information provided in the initial application. Supporting documents may vary depending on the scenario but in general we require:
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- Income and expense statements
- Assets and liabilities documents
- Incoming and outgoing property details

Note: We use Illion for electronic bank statements to verify income and expenses. If your client has no end debt, they may still need to complete this step for Bridgit to verify loan repayment history on the outgoing property. Get accredited today to view our full list of supporting documents.

What does the application process look like?

Our application process is fast, simple, and completely digital. We start with your client’s eligibility, asking a few questions about the property they are selling, the property they are buying, assess their financial position, and digitally verify their identity. You can log into our broker portal at any time to check on the status of the loan. Our process moves pretty quick so if you and your client are available to move quickly with us, we can have their approval ready in as fast as 24hrs.

How long does it take for my client to receive funds?

Funding can be available as fast as 48hrs of executing all loan and mortgage documents.

How am I paid?

Your fee will be paid into your nominated account on the 15th of the month following loan settlement. For example, if the loan settles in April, you will be paid on the 15th of May. We pride ourselves on fair lending and therefore all loan scenarios have no clawbacks.

How do I become a Bridgit partner?

We work with a range of partners including Brokers, Real Estate Agents, Solicitors, and Accountants. View our partners page to get accredited and help your clients buy their next dream home.

What is the repayment process?

The repayment process with Bridgit is simple. Your client has up to 12 month to sell their existing property and repay the loan with Bridgit, there are no monthly repayments required. The set-up fee is automatically deducted from the total loan proceeds meaning no additional payments will be required in this time (no out of pocket expenses). After your clients’ have sold their existing property, complete our discharge form found in your broker portal. Any unused interest will be recalculated and the repayment amount reduced to reflect the actual term.

If your client is downsizing (there is no debt remaining after the sale of their property), Bridgit will immediately release security over all properties.

If your client is upsizing, we will partially discharge the Bridgit loan. This means we release security of one property and your client will refinance the other with an alternate lender who can provide a longer-term mortgage.

What are the key benefits for my client?

At Bridgit we provide the fastest and simplest bridging loan option for your client, we are the bridging experts. This will help your client:

1. Secure their dream property when they find it, without having to sell first
2. Removing the time constraints of lining up exact settlement dates (and potentially losing a deposit)
3. Save on costs of temporary living situations (renting, storage, multiple moves).
4. No repayments until maturity and no double mortgages

What is the purpose of bridging loan?

The purpose of a bridging loan is to allow homeowners to buy a new home before they have sold their existing one. It is a critical financial solution that has helped many Australians buy their dream home, without the hassle of selling first. We are a specialist bridging loan lender that provides a quick and easy solution for what used to be a complex process.

To find out more about the Bridgit bridging loan, check out the Bridgit Loan page.

Common Questions

What is my Bridgit loan set up fee?

Unlike other lenders, we do not charge monthly fees, annual fees, bill extra for paying off your loan early or charge interest on the first month of the loan period. Instead, we charge a set-up fee. The set-up fee covers the cost of providing you with credit assistance and the loan. It is a one-time, non-refundable fee that is added to the loan balance and on settlement, it is automatically deducted from your total loan proceeds. In simpler terms, the amount of money you receive is the total loan amount minus the setup fee, meaning you don’t have to worry about paying anything until the end of your loan term once you have sold your property. Our set up fee is from 0.99%.

What determines my interest rate?

Unlike traditional banks, Bridgit adjusts pricing and loan size for risk. Borrowers will receive better rates for low LVR’s, high quality assets and strong credit history. Our Residential Bridging Loan product features an interest free period for the first month.

What approvals do Bridgit offer?

At Bridgit we offer a conditional approval offer when you have a contract of sale or you have found a property you plan to go to Auction for. The conditional approval offer is valid for 14 days, you accept this offer by paying your loan deposit. Once accepted you then move into the next stage to receive an unconditional approval.

Unconditional approval is sent once we have completed the final assessments of your loan documents, you are then provided a Bridgit loan offer.

If you don’t have a property in mind you can schedule a call with one of our Bridging Specialists who will tell you a little more about Bridgit and what your next steps may be.

What does LVR mean?

Loan to Value Ratio (LVR) is the amount of money you are borrowing from a lender, shown as a percentage of the value of the property you are borrowing against.

Are there postcode restrictions?

Because we're still new, we can't lend in some areas outside the major population areas of Australia. Enquire by emailing us at hello@bridgit.com.au and we'll quickly let you know if your postcode meets our lending criteria.

How fast will I get the funds?

After you apply, we review your application for assessment and start working towards your approval right away. The process moves quickly here and if you're available to respond to our lending specialists right away, you can reach settlement within 48hrs.

Is my information secure?

Yes! We ensure your information is secure by using bank level security and encryption across our digital platform. This means you get all the online benefits without jeopardising your trust in us.

Do you hold a credit license?

Yes! We hold an Australian Credit Licensee (ACL) 532542, which means we are fully authorised to engage in credit activities.

How much can I borrow with a Bridgit loan?

The amount you can borrow varies according to property type. We offer loans from $300,000 – $4,000,000 with an LVR (Loan to Value Ratio):
- 80% for Residential Properties
- 50% for Vacant Land

Note: We can go above or below these loan amounts if the exception is approved.

Confused about which loan is right for you? Email us at hello@bridgit.com.au to speak with one of our loan specialists.
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What is the interest rate for bridging loans?

The interest rate for a bridging loan is generally a variable interest rate. The interest rate varies by different lenders. At Bridgit, our bridging loan is structured differently, providing an interest free period with a set up fee, interest is then charged after the interest free period.

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