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Find a BrokerBridging Loans: Buy Your Next Home Before You Sell
Don’t let timing cost you the right home. A bridging loan lets you buy first and sell on your terms, with bridging finance from 50+ lenders compared by a YBR broker.
- \Buy now, sell later
- \Peak & end debt worked out for you
- \50+ lenders compared
Bridging Loans
Found your next home? Talk to a bridging finance expert today!
TYPICAL TERM
Up to 6 months, 12 if building
REPAYMENTS
Usually interest-only during the bridge
BASED ON
Your peak debt and end debt
BEST FOR
Buying before you sell
THE BASICS
What is a bridging loan?
QUICK ANSWER
A bridging loan is short-term home finance that covers the gap between buying your next property and selling your current one. You settle on your new home first, then the proceeds from your sale pay the bridging loan down to a normal, ongoing home loan.
You can usually choose how the interest is handled while you hold both properties. You can keep making your normal repayments and pay the bridging interest as you go, or have the interest added to the loan and settled when your old home sells. Interest compounds monthly, so the longer your sale takes, the more it costs.
How does bridging finance work in Australia?
Bridging finance in Australia usually rolls your existing mortgage and the new purchase into one combined loan, called your peak debt. Once your old home sells, the sale proceeds reduce it to your end debt, which becomes your ongoing home loan.
Here’s how it typically plays out:
1
Your broker works out your peak debt and end debt
2
The lender approves the loan against both properties
3
You settle on your new home.
4
You sell your current home within the bridging period.
5
The sale proceeds pay down the peak debt.
6
What’s left becomes your ongoing home loan.
TRY IT
Bridging loan calculator: estimate your peak and end debt
- Peak debt: your existing loan, plus the new home’s price, plus costs like stamp duty and legal fees.
- End debt: what’s left once your old home sells. This becomes your ongoing home loan.
LOAN TYPES
Open vs closed bridging loans
EASIER TO APPROVE
Closed bridging loan
You’ve already exchanged contracts on the sale of your current home and have a settlement date. Lenders see less risk.
MORE FLEXIBLE
Open bridging loan
You haven’t sold yet and there’s no fixed sale date. Harder to get across the line, so a strong equity position helps.
How much can I borrow with a bridging home loan?
It depends on the value of both properties, the equity you hold and whether you can comfortably afford the end debt. Lenders assess your peak debt against the combined value of both homes, then check your income, expenses and other commitments.
- NThe equity in your current home
- NYour credit history
- NYour borrowing power and serviceability
Is a bridge loan your only option?
- NSelling first and renting for a short time
- NNegotiating a longer settlement on your new home
- NUsing your equity for the deposit
- NA deposit bond instead of a cash deposit
A YBR broker can compare these side by side.
BEFORE YOU COMMIT
What to weigh up
A lower sale price
If your home sells for less than expected, your end debt will be higher than planned
A longer sale
The longer your sales takes, the more interest you pay before settlement.
Missing the deadline
Some lenders adjust your rate or terms if your home hasn’t sold in the agreed period.
Self-employed and need bridging finance?
We specialise in low doc and alt doc lending too. If your income doesn’t look like a standard payslip, we can still help you bridge the gap.
WHY GO WITH US
Why use a YBR broker for bridging finance
Not every lender offers bridging loans in Australia, and the ones that do assess them differently. Our local brokers compare options from 50+ lenders, work out your peak and end debt, and structure the loan around your sale timeline. We’re not backed by a major bank, so our job is to find the loan that fits you. See how brokers work.
01
We search, compare & negotiate
We research the market and compare rates from 50+ lenders to find a bridging loan that suits your needs.
02
We do the heavy lifting
We keep the application simple, managing the paperwork from application right through to settlement on both properties.
03
You choose the right loan
We present the options and the facts, so you can pick the bridging finance that fits your timing and goals.
CLIENT STORIES
What our clients have to say
Excellent service and attention to detail. We would highly recommend YBR and are extremely grateful for the support we receive from Struan and Jess.
Dale Wylie
Self-Employed
I’ve dealt with Andrew and his team at Yellow Brick Road Rosanna on many occasions and he is excellent to work with. Very professional. A top result for our home loan.
Matt Hodgson
Self-Employed
Andrew has given us great service every time we have used Yellow Brick Road at Northlakes to refinance our home loans. Andrew is very approachable, honest and knowledgable.
Melissa Luhrman
Self-employed
FAQS
Bridging Loan FAQs
Is a bridge loan right for me if I'm buying before selling?
A bridge loan suits buyers who’ve found their next home but haven’t sold yet. It’s short-term by design, so it works best when you’re confident your current home will sell within the bridging period. Talk to a Yellow Brick Road broker to see if it fits your situation.
How long does a bridging loan last?
Most bridging loans run for up to six months if you are selling an established home, or up to 12 months if you’re building your next one.
Do I make repayments during the bridging period?
It depends on the lender. Many let you add the bridging interest to the loan and pay it when your old home sells, while you keep paying your normal home loan. Others ask you to pay interest as you go.
What's the difference between peak debt and end debt?
Peak debt is the total you owe while you hold both properties. End debt is what’s left, and becomes your ongoing loan, once your old home sells and the proceeds are applied.
What happens if my home doesn 't sell in time?
Talk to your broker and lender as early as possible. Depending on the loan terms, you may be able to extend the arrangement, though this can come with a higher rate or added conditions.
Do I need a signed contract of sale to qualify?
Not always, but a closed bridging loan, where your sale contract is exchanged, is generally easier to get approved than an open one.
Can self-employed borrowers get a bridging loan?
Yes. Lenders still need to see evidence of your income and serviceability, and a broker who understands self-employed and low doc lending can help you put the right application together.
Are bridging loans available across Australia?
Yes. Bridging loans are available in every state from a range of banks and non-bank lenders, though criteria vary. Your local YBR broker can tell you which lenders suit your situation.
How much does a bridging loan cost?
You’ll pay interest on your peak debt for the bridging period, often added to the loan and paid when your old home sells, plus standard loan fees and valuations on both properties. Your broker can estimate the total before you commit.
Buying & selling at the same time is stressful.
You don’t have to work it out alone.
We’re here to help
Bridging Loans
Found your next home? Talk to a bridging finance expert today!
