Question 1

What is a bridging loan?

Accepted Answer

A bridging loan is short-term property finance that 'bridges' the gap when you need funds quickly. It's commonly used when buying a new property before selling your existing one, purchasing at auction, funding renovations, or covering settlement timing gaps. Unlike traditional mortgages that take weeks to arrange, bridging loans can be approved in 24-48 hours.

Question 2

How quickly can I get approved for a bridging loan?

Accepted Answer

Most straightforward applications receive approval in principle within 24 hours, with full approval in 2-3 business days. Once approved, settlement can occur within 5-14 days depending on complexity. For urgent matters like auctions, we can often move even faster. The key is having your documents ready and a clear exit strategy.

Question 3

What can I use a bridging loan for?

Accepted Answer

Bridging loans are versatile and can be used for: buying a new home before selling your current one, auction purchases requiring fast settlement, covering settlement gaps when sale and purchase don't align, property renovations and developments, business acquisitions, commercial property purchases, and any situation where traditional lenders can't move fast enough.

Question 4

What interest rates do bridging loans have?

Accepted Answer

Bridging loan rates typically range from 0.8% to 1.5% per month, depending on the loan amount, term, security value (LVR), and your circumstances. While higher than traditional mortgages, bridging loans are designed for short-term use (typically 1-12 months), so total interest costs are often manageable. We provide transparent quotes with all costs upfront.

Question 5

How much can I borrow with a bridging loan?

Accepted Answer

We offer bridging loans from $100,000 to $10 million or more. The amount depends on your property security value (we typically lend up to 70-80% LVR), your exit strategy strength, and overall financial position. First and second mortgage positions are available depending on your situation.

Question 6

What security is required for a bridging loan?

Accepted Answer

Bridging loans are secured against property—either the property you're buying, your existing property, or both (cross-collateralisation). We accept residential, commercial, and rural properties as security. The key requirement is sufficient equity in the property to cover the loan amount plus costs.

Question 7

What is an exit strategy and why does it matter?

Accepted Answer

An exit strategy is your plan for repaying the bridging loan. Common exit strategies include: selling your existing property, refinancing to a traditional mortgage after purchase/renovation, or selling the property you've purchased. A clear, realistic exit strategy is the most important factor in bridging loan approval—it shows how and when you'll repay the loan.

Question 8

Can I get a bridging loan with bad credit?

Accepted Answer

Yes, bridging lenders focus primarily on your property security and exit strategy rather than credit history alone. While a clear credit file helps, we regularly help clients with impaired credit, defaults, or complex income situations. Each application is assessed on its individual merits—your security and exit plan matter most.

Question 9

What documents do I need to apply?

Accepted Answer

For a bridging loan application you'll typically need: proof of identity (driver's licence, passport), property details and valuations, evidence of your exit strategy (sale contract, refinance pre-approval), basic financial statements or tax returns, and details of any existing mortgages. We'll guide you through exactly what's needed for your situation.

Question 10

Are there upfront fees for bridging loans?

Accepted Answer

We don't charge upfront application fees—you only pay when your loan settles. Typical costs include establishment fees (1-2% of loan amount), valuation fees, legal fees, and monthly interest. All fees are clearly disclosed in your loan offer before you commit. We believe in transparent, honest pricing with no hidden surprises.

Question 11

How long can I have a bridging loan for?

Accepted Answer

Bridging loans typically run from 1 to 24 months, with 6-12 months being most common. The term depends on your exit strategy timeline—for example, how long you expect it to take to sell your property or complete renovations. We'll work with you to structure a term that matches your realistic timeline.

Question 12

What happens if I can't repay on time?

Accepted Answer

If your exit strategy is delayed (e.g., your property takes longer to sell), contact us early. We can often extend the loan term to give you more time. The key is communication—we work with borrowers to find solutions. However, having a realistic exit strategy from the start is crucial to avoid stress and additional costs.

Question 13

Is a bridging loan right for me?

Accepted Answer

A bridging loan may be right if you: need funds faster than banks can provide, are buying before selling, have strong property security, have a clear exit strategy within 12 months, and understand the higher cost of short-term finance. If you're unsure, we offer free consultations to discuss whether bridging is the best option for your situation.

Bridging Loan,
Melbourne

Flexible bridging loans

24 hour approval

Simple online process

Local customer service

Buy now, sell later

What is a Bridging Loan?

Bridging Finance For Every Need

Property Purchase Bridging

Auction Finance

Settlement Gap Finance

Renovation Loans

Business Bridging

Development Finance

Trusted by Melbourne Property Buyers

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Bridging Loan,Melbourne