A bridging loan is a short-term home loan that allows you to buy a new property before selling your current one.At Ingram Financial, we help clients across Australia structure bridging loans the right way—so you can move forward with confidence, avoid rushed sales, and secure the home you really want.With access to dozens of lenders, we’ll guide you through the process from start to finish.Find Out If a Bridging Loan Is Right for You – speak to a mortgage broker today.
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: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.
Ready to Buy Before You Sell?
Speak with Ingram Financial today and get expert guidance on your bridging loan options.