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Bridging Home Loans

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Buy your next home before you sell your current one

For many families, the right moment to upgrade comes naturally — a growing family, more space needed, or simply being ready for a change. The challenge is timing. Selling and buying rarely line up perfectly, and that’s where a bridging home loan can help.

A bridging loan is a short-term lending solution that lets you purchase your new home first and sell your existing property afterwards. It gives you the flexibility to move forward confidently — without rushing your sale or missing the home you've been waiting for.

At My Finance Consultants, we explain your options, compare lenders, and structure the loan so it works for your budget and timeframe.

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How a bridging home loan works

A bridging loan temporarily covers the cost of both properties while you transition from your current home to your new one. Once your existing property sells, the sale proceeds are used to pay down the bridging loan, and you then move to a standard home loan on your new property.

Most bridging loans are available for 6 to 12 months, and may allow interest to be capitalised (added to the loan instead of being paid out-of-pocket during the bridging period).

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Advantages of a bridging home loan

  • Buy first, sell later — no need to rush your sale

  • Act quickly on the right home when it becomes available

  • Remain living in your current home while your new one is built or settles

  • Interest can be capitalised to help manage cash flow temporarily

  • Allows you to avoid short-term accommodation or renting in between moves

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Important considerations

A bridging loan can help reduce stress — but it needs to be structured carefully. Key factors to consider include:

  • Short-term higher interest rates compared to standard loans

  • You may be paying for two loans at once during the bridging period

  • You must sell your existing home within the bridging timeframe (usually 6–12 months)

  • Lenders often discount your property value when assessing available equity

  • Repayments may compound if interest is capitalised and no repayments are made

This is why bridging loans need careful planning. We help model your cash flow, end loan balance, and sale scenarios — so your upgrade remains stress-free.

Quick tool:
Estimate loan repayments → Mortgage Repayment Calculator (/mortgage-repayment-calculator)

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Do I have enough equity for a bridging loan?

To qualify for a bridging loan, lenders will look at:

  • The current value of your existing property

  • Your remaining home loan balance

  • The purchase price of your new property

  • Your income and ongoing expenses

  • Your ability to service the end debt after sale

Most lenders will reduce your property value by around 15% when calculating equity — as a safety buffer.

We’ll help you confirm your real equity position with upfront lender and valuation assessments.

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How much will upgrading cost?

There are costs involved in both selling and purchasing, such as:

  • Selling agent fees and marketing

  • Legal/conveyancing fees

  • Stamp duty

  • Moving costs

  • Potential renovation or presentation costs before sale

Use our calculators to estimate key costs:

  • Property Selling Cost Calculator (if applicable / add if available)

  • Stamp Duty Calculator (/stamp-duty-calculator)

  • Property Buying Power Calculator (/property-buying-power-calculator)

  • Borrowing Power Calculator (/borrowing-power-calculator)

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Bridging Loan Example (simple and easy for clients to understand)

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You own your current home with a loan of $400,000 and $200,000 equity. You find a new home for $900,000 but haven't sold yet.

A bridging loan allows you to buy the new property now. Your temporary total loan (“peak debt”) may include:

  • Your existing loan

  • Your new loan

  • The bridging portion to cover the deposit difference

When your current home sells, the existing loan and bridging amount are repaid, leaving you with one final home loan on your new property.

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Is a bridging loan right for me?

A bridging loan may be suitable if you:

  • Have sufficient equity in your current property

  • Have identified a new property you want to purchase

  • Need time to sell without pressure

  • Can comfortably service the end debt

  • Want to avoid renting or moving twice

If not, there are alternatives — including sell first, long settlement negotiation, or deposit bond strategies. We’ll help work out the best approach.

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Ready to explore your upgrade options?

We compare more than 40 banks and lenders — including those who specialise in bridging finance — and manage your application from start to settlement.

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  • Start Your Bridging Loan Assessment

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