Bridging Loan Calculator
Bridging Loan Calculator: Peak Debt and End Debt
Buying your next home in Australia before you sell? Enter your figures to estimate your peak debt during the bridge, the end debt you’d keep once your home sells, and the interest that could build up in between.
Your bridge
All figures are your own estimates. Leave the rate blank to see peak and end debt only.
Enter your sale price, what you owe and the price of your next home to see an estimate.
Results are estimates only, based on the figures you enter. Interest is estimated on the bridging part only (the part your sale is expected to repay), added monthly at a rate that stays the same. Interest on the rest of the loan during the bridge, any repayments you make and lender fees aren’t included. Results aren’t a quote, an approval or a loan offer, and they don’t consider your objectives, financial situation or needs. Lenders use their own valuations and work out peak and end debt their own way. Lending criteria apply.
How it works
Peak debt, less your sale.
Peak debt = what you owe now + the new home’s price + buying costs − cash you put in.
End debt = peak debt − the sale price after selling costs + any bridging interest added to the loan.
If you add a rate and the months until your sale settles, the calculator estimates interest on the bridging part only (the part your sale is expected to repay), added monthly. Interest on the rest of the loan during the bridge, and any repayments you make, aren’t included. Some lenders add bridging interest to the loan like this; others charge it monthly and you pay as you go. See our bridging loan guide for how lenders differ.
The share figure compares your peak debt with your sale price plus your next home’s price. It isn’t an LVR: lenders work that out from their own valuations.
An example
Illustration only, not a quote or a recommendation. Say your home could sell for $800,000 with $20,000 of selling costs, and you owe $300,000. Your next home costs $1,000,000 plus $40,000 of buying costs. Your peak debt is $1,340,000 and your end debt before interest is $560,000. At a sample rate of 7% for six months, interest added on the bridging part would be about $27,700, taking the end debt to about $587,700. The rate is a sample for illustration only, not an advertised rate or an offer.
Test a lower sale price
Your end debt rises about dollar for dollar if the sale price falls. The calculator shows a 5% lower sale as a check. Try your own lower figure too, and a longer time to sell.
Working out the costs of your next home? Try the stamp duty calculator, or read about simultaneous settlement as an alternative.
Questions
Common questions, straight answers.
What is peak debt?
Peak debt is the most you owe during the bridge: your current loan, plus the price of the new home and its costs, less any cash you put in. It’s the figure while you own both homes.
What is end debt?
End debt is what’s left once your current home sells and the sale price, after selling costs, comes off the peak debt. It becomes your ordinary home loan.
What if my home sells for less?
Your end debt rises dollar for dollar. The calculator shows a 5% lower sale as a check, and you can try your own lower figure too.
Why does the calculator ask for a rate?
Some lenders add the interest on the bridging loan to the balance until you sell. The rate and the months until your sale settles show how much that could add to your end debt. Any rate you enter is your own example, not an advertised rate; read a lender’s rate with its comparison rate. Leave both blank to see peak and end debt only.
How long can a bridge run?
Lenders set their own limits, so check with the lender. Our bridging loan guide covers how two major banks describe their terms.
Will a lender lend me my peak debt?
That depends on the lender, the value of both properties and your ability to repay. Lenders use their own valuations and set their own limits. This calculator doesn’t assess that.
Want to see how lenders would treat your bridge?
No obligation. No pressure. Just honest answers.
We don’t charge you for our service. Lenders pay us a commission if you go ahead with a loan.