A bridging loan is a short-term home loan that allows you to buy a new property before selling your current one.
Moving home is already a big deal — the last thing you want is to feel rushed into selling, or to miss out on the right property because your timing doesn’t line up. A bridging loan gives you the breathing room to buy when you’re ready, move on your own terms, and sell your existing home without the pressure of a ticking clock.
At Ingram Financial, we help clients across Australia structure bridging loans the right way. With access to dozens of lenders, we’ll find the right fit for your situation and guide you through the process from start to finish.
What Is a Bridging Loan?
A bridging loan is designed to “bridge the gap” between buying a new home and selling your existing one.
Instead of selling first, you can:
This can reduce stress and give you more flexibility in a competitive property market.
How Does a Bridging Loan Work?
Bridging loans are structured in two stages around the peak and end debt.
Peak debt is the maximum total debt owing during the bridging period before your existing property is sold, while end debt is the remaining loan balance after the sale proceeds have been applied.
1. Purchase your new property
Your lender provides funds to complete your purchase.
2. Temporary “peak debt” period
This is the combined value of your existing home loan and your new property purchase
3. Sell your existing property
Once your current home is sold, the proceeds reduce your loan.
4. Final loan (“end debt”)
Your loan settles into a standard home loan based on the remaining balance.
Key Features of Bridging Loans
- Short-term loan (typically 6–12 months however it can be as long as 24 months with some lenders)
- Interest may be capitalised (added to the loan temporarily)
- Based on the equity in your current property
- Available for owner-occupiers and some investors
- Flexible repayment options during the bridging period
Benefits of a Bridging Loan
- Buy your next home before selling
- Avoid temporary accommodation or renting
- Take your time to sell for the right price
- Move on your timeline – not the market’s
- Reduce pressure during the buying process
Things to Consider
Bridging loans can be powerful—but they need to be structured correctly.Things to keep in mind:
- Your existing property needs to sell within the loan term
- Interest costs and application fees may be higher than standard loans
- You may temporarily hold two properties
- Market conditions can affect your sale price
That’s why working with an experienced mortgage broker is critical.
Who Should Consider a Bridging Loan?
Bridging loans are ideal for:
- Homeowners upgrading to a larger property
- Downsizers buying before selling
- Families relocating for work or lifestyle
- Buyers in competitive markets who don’t want to miss out
How Much Can You Borrow?
Your borrowing capacity depends on:
- The value of your current property
- Your existing loan balance
- The purchase price of your new home
- Your income and financial position
Most lenders allow borrowing up to 75–80% of the combined property value, but this varies.
We’ll help you understand your borrowing power and structure your loan safely.
Example: How a Bridging Loan Works
Let’s say:
- You buy a new home for $1,000,000
- You still owe $400,000 on your current home
Your peak debt may be around $1,400,000After selling your existing property, the proceeds reduce your loan to your final loan amount.
Why Use Ingram Financial for a Bridging Loan?
- Access to dozens of lenders across Australia
- Expert structuring of peak and end debt
- Clear, straightforward advice
- Support from pre-approval through to settlement
- Australia-wide service
We make complex lending simple and ensure your bridging loan is set up correctly from day one.
Frequently asked questions about bridging loans
Most bridging loans run for 6 to 12 months, depending on the lender, with some going as high as 24 months.
In many cases, repayments can be reduced or deferred, with interest added to the loan.
Your lender may extend the loan or convert it, but this depends on your situation. Planning ahead is key.
Yes. We can help you secure pre-approval so you can buy with confidence.
It depends on your situation, but for many people it’s a great option – especially in a competitive market where waiting to sell first could mean missing out on the right home.
The key is making sure it’s structured correctly for your circumstances, with a realistic plan for selling your existing property within the loan term. We’ll help you work through whether it makes sense for you before you commit to anything.
Bridging loans typically carry a higher interest rate than a standard home loan, and interest is often capitalised during the bridging period – meaning it’s added to your loan balance rather than paid monthly.
There may also be application and valuation fees. The total cost depends on how long the bridging period runs and the size of your peak debt, so the sooner your existing property sells, the lower your overall cost.
We’ll give you a clear picture of the numbers before you proceed.
Yes, it’s possible – though the assessment process can be more involved than for a standard PAYG applicant.
Lenders will want to see evidence of your income, typically through tax returns and financial statements.
Some lenders on our panel are more flexible with self-employed borrowers than others, so having a broker find the right fit matters.
Get in touch and we can talk through your options.
Yes – and this is actually one of the most common reasons people use bridging finance.
Buying at auction means exchanging contracts on the spot with no cooling-off period, so having your finance sorted beforehand is essential.
We can help you get pre-approval for a bridging loan so you can bid with confidence knowing your finance is ready to go.
Your existing mortgage stays in place during the bridging period and forms part of your peak debt alongside the new loan.
Depending on the lender, you may be able to defer repayments on one or both loans during this time, with interest capitalised.
Once your existing property sells, the proceeds pay down the peak debt and your loan settles into a standard home loan on the remaining balance.
Timelines vary by lender, but in most cases we can get pre-approval in place within a few days once we have your documents together.
Formal approval and settlement typically follow a similar timeline to a standard home loan.
If you’re working to a tight deadline – such as an upcoming auction or settlement date – let us know early and we’ll prioritise getting things moving.
Ready to Buy Before You Sell?
Speak with Ingram Financial today and get expert guidance on your bridging loan options.
Need some help?
Not sure where to start? That’s exactly what we’re here for. Drop us a message and we will get back to you within one business day with clear, honest advice tailored to your situation.