--- title: "Bridging Loan Glossary | Key Terms & Definitions | Melbourne" description: "Glossary of bridging loan terms including LVR, capitalised interest, exit strategies, and Australian property finance terminology." lang: en json-ld: | [ { "@context": "https://schema.org", "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://bridgingloanmelbourne.com.au" }, { "@type": "ListItem", "position": 2, "name": "Glossary", "item": "https://bridgingloanmelbourne.com.au/glossary" } ] }, { "@context": "https://schema.org", "@type": "DefinedTermSet", "name": "Bridging Loan Glossary", "description": "Comprehensive glossary of bridging loan terminology, including LVR, capitalised interest, settlement gaps, auction finance, and property financing terms.", "url": "https://bridgingloanmelbourne.com.au/glossary", "inDefinedTermSet": [ { "@type": "DefinedTerm", "name": "Bridging Loan", "description": "A short-term loan used to 'bridge' the gap between buying a new property and selling an existing one, or to provide quick finance when traditional lenders can't meet tight timelines." }, { "@type": "DefinedTerm", "name": "LVR (Loan-to-Value Ratio)", "description": "The loan amount expressed as a percentage of the property's value. Bridging loans typically offer LVRs from 65% to 80% depending on the property type and borrower situation." }, { "@type": "DefinedTerm", "name": "Capitalised Interest", "description": "Interest that is added to the loan balance rather than paid monthly. Common in bridging loans where the borrower repays everything (principal + interest) at the end of the loan term." }, { "@type": "DefinedTerm", "name": "Exit Strategy", "description": "The planned method for repaying the bridging loan. Typically through sale of existing property, refinance to a traditional mortgage, or settlement of a property purchase." }, { "@type": "DefinedTerm", "name": "Establishment Fee", "description": "A one-time fee charged by the lender when setting up the loan. Usually 1-3% of the loan amount, covering valuations, legal costs, and administration." }, { "@type": "DefinedTerm", "name": "Caveat Loan", "description": "A type of bridging finance where the lender places a caveat (legal notice) on the property title instead of a registered mortgage. Faster to arrange but typically higher rates." }, { "@type": "DefinedTerm", "name": "First Mortgage", "description": "A loan secured by the property where the lender has first priority if the property is sold. First mortgage bridging loans typically have lower rates than second mortgages." }, { "@type": "DefinedTerm", "name": "Second Mortgage", "description": "A loan secured against a property that already has an existing first mortgage. Higher risk for the lender means higher interest rates for the borrower." }, { "@type": "DefinedTerm", "name": "Settlement Gap", "description": "The period between when you need to settle on a new property purchase and when you receive funds from selling your existing property. Bridging loans cover this gap." }, { "@type": "DefinedTerm", "name": "Residual Debt", "description": "The amount still owing on a property after it's sold and settlement costs are paid. Important for calculating how much bridging finance you actually need." }, { "@type": "DefinedTerm", "name": "Auction Finance", "description": "Pre-approved funding specifically for property auctions where you need certainty of funds on auction day. Bridging lenders can provide approval within 24-48 hours." }, { "@type": "DefinedTerm", "name": "Deposit Bond", "description": "A guarantee from an insurer that replaces the need for a cash deposit at auction or exchange. Useful when your funds are tied up in your existing property." }, { "@type": "DefinedTerm", "name": "Unconditional Approval", "description": "Loan approval with no outstanding conditions. Required for auction purchases where contracts are immediately binding with no cooling-off period." }, { "@type": "DefinedTerm", "name": "Equity Release", "description": "Accessing the value (equity) in a property you own through a loan. Commonly used to fund deposits, renovations, or business opportunities." }, { "@type": "DefinedTerm", "name": "Peak Debt", "description": "The maximum total debt during a bridging period - typically when you own two properties before selling the first. Lenders assess your ability to service peak debt." }, { "@type": "DefinedTerm", "name": "Simultaneous Settlement", "description": "When the sale of one property and purchase of another settle on the same day, eliminating the need for bridging finance. Difficult to coordinate in practice." }, { "@type": "DefinedTerm", "name": "Monthly Interest Rate", "description": "The interest rate charged per month on a bridging loan, typically ranging from 0.8% to 1.5%. Multiply by 12 for an approximate annual comparison rate." }, { "@type": "DefinedTerm", "name": "Comparison Rate", "description": "A rate that includes both the interest rate and most fees, designed to help compare different loan products. Required by law to be displayed alongside advertised rates." }, { "@type": "DefinedTerm", "name": "Valuation Fee", "description": "The cost of having a property professionally valued to determine its market worth. Required by lenders to confirm the security value before approving a loan." }, { "@type": "DefinedTerm", "name": "Exit Fee", "description": "A fee charged when you repay and close the loan. Some lenders charge early exit fees if you repay before the minimum term. Look for lenders with no exit fees." }, { "@type": "DefinedTerm", "name": "Line Fee", "description": "An ongoing fee charged for having a facility available, even if not fully drawn. More common in business and development finance than residential bridging." }, { "@type": "DefinedTerm", "name": "Default Interest", "description": "A higher interest rate that applies if loan repayments are missed or the loan isn't repaid by the agreed end date. Can significantly increase total costs." } ] }, { "@context": "https://schema.org", "@type": "WebPage", "name": "Bridging Loan Glossary | Key Terms & Definitions", "description": "Complete glossary of bridging loan terms. Learn about LVR, capitalised interest, exit strategies, auction finance, and property financing terminology.", "url": "https://bridgingloanmelbourne.com.au/glossary", "isPartOf": { "@type": "WebSite", "name": "Bridging Loan Melbourne", "url": "https://bridgingloanmelbourne.com.au" }, "mainEntity": { "@type": "DefinedTermSet", "@id": "https://bridgingloanmelbourne.com.au/glossary#terms" } }, { "@context": "https://schema.org", "@type": "WebPage", "url": "https://bridgingloanmelbourne.com.au/glossary", "speakable": { "@type": "SpeakableSpecification", "cssSelector": [ ".glossary-term", ".glossary-definition", "[data-speakable]" ], "xpath": [ "//*[@data-speakable]" ] }, "mainEntity": [ { "@type": "DefinedTerm", "@id": "https://bridgingloanmelbourne.com.au/glossary#term-bridging-loan", "name": "Bridging Loan", "description": "A short-term loan used to 'bridge' the gap between buying a new property and selling an existing one, or to provide quick finance when traditional lenders can't meet tight timelines.", "url": "https://bridgingloanmelbourne.com.au/glossary#term-bridging-loan" }, { "@type": "DefinedTerm", "@id": "https://bridgingloanmelbourne.com.au/glossary#term-lvr-loan-to-value-ratio", "name": "LVR (Loan-to-Value Ratio)", "description": "The loan amount expressed as a percentage of the property's value. Bridging loans typically offer LVRs from 65% to 80% depending on the property type and borrower situation.", "url": "https://bridgingloanmelbourne.com.au/glossary#term-lvr-loan-to-value-ratio" }, { "@type": "DefinedTerm", "@id": "https://bridgingloanmelbourne.com.au/glossary#term-capitalised-interest", "name": "Capitalised Interest", "description": "Interest that is added to the loan balance rather than paid monthly. Common in bridging loans where the borrower repays everything (principal + interest) at the end of the loan term.", "url": "https://bridgingloanmelbourne.com.au/glossary#term-capitalised-interest" }, { "@type": "DefinedTerm", "@id": "https://bridgingloanmelbourne.com.au/glossary#term-exit-strategy", "name": "Exit Strategy", "description": "The planned method for repaying the bridging loan. Typically through sale of existing property, refinance to a traditional mortgage, or settlement of a property purchase.", "url": "https://bridgingloanmelbourne.com.au/glossary#term-exit-strategy" }, { "@type": "DefinedTerm", "@id": "https://bridgingloanmelbourne.com.au/glossary#term-establishment-fee", "name": "Establishment Fee", "description": "A one-time fee charged by the lender when setting up the loan. Usually 1-3% of the loan amount, covering valuations, legal costs, and administration.", "url": "https://bridgingloanmelbourne.com.au/glossary#term-establishment-fee" }, { "@type": "DefinedTerm", "@id": "https://bridgingloanmelbourne.com.au/glossary#term-caveat-loan", "name": "Caveat Loan", "description": "A type of bridging finance where the lender places a caveat (legal notice) on the property title instead of a registered mortgage. Faster to arrange but typically higher rates.", "url": "https://bridgingloanmelbourne.com.au/glossary#term-caveat-loan" }, { "@type": "DefinedTerm", "@id": "https://bridgingloanmelbourne.com.au/glossary#term-first-mortgage", "name": "First Mortgage", "description": "A loan secured by the property where the lender has first priority if the property is sold. First mortgage bridging loans typically have lower rates than second mortgages.", "url": "https://bridgingloanmelbourne.com.au/glossary#term-first-mortgage" }, { "@type": "DefinedTerm", "@id": "https://bridgingloanmelbourne.com.au/glossary#term-second-mortgage", "name": "Second Mortgage", "description": "A loan secured against a property that already has an existing first mortgage. Higher risk for the lender means higher interest rates for the borrower.", "url": "https://bridgingloanmelbourne.com.au/glossary#term-second-mortgage" }, { "@type": "DefinedTerm", "@id": "https://bridgingloanmelbourne.com.au/glossary#term-settlement-gap", "name": "Settlement Gap", "description": "The period between when you need to settle on a new property purchase and when you receive funds from selling your existing property. Bridging loans cover this gap.", "url": "https://bridgingloanmelbourne.com.au/glossary#term-settlement-gap" }, { "@type": "DefinedTerm", "@id": "https://bridgingloanmelbourne.com.au/glossary#term-residual-debt", "name": "Residual Debt", "description": "The amount still owing on a property after it's sold and settlement costs are paid. Important for calculating how much bridging finance you actually need.", "url": "https://bridgingloanmelbourne.com.au/glossary#term-residual-debt" }, { "@type": "DefinedTerm", "@id": "https://bridgingloanmelbourne.com.au/glossary#term-auction-finance", "name": "Auction Finance", "description": "Pre-approved funding specifically for property auctions where you need certainty of funds on auction day. Bridging lenders can provide approval within 24-48 hours.", "url": "https://bridgingloanmelbourne.com.au/glossary#term-auction-finance" }, { "@type": "DefinedTerm", "@id": "https://bridgingloanmelbourne.com.au/glossary#term-deposit-bond", "name": "Deposit Bond", "description": "A guarantee from an insurer that replaces the need for a cash deposit at auction or exchange. Useful when your funds are tied up in your existing property.", "url": "https://bridgingloanmelbourne.com.au/glossary#term-deposit-bond" }, { "@type": "DefinedTerm", "@id": "https://bridgingloanmelbourne.com.au/glossary#term-unconditional-approval", "name": "Unconditional Approval", "description": "Loan approval with no outstanding conditions. Required for auction purchases where contracts are immediately binding with no cooling-off period.", "url": "https://bridgingloanmelbourne.com.au/glossary#term-unconditional-approval" }, { "@type": "DefinedTerm", "@id": "https://bridgingloanmelbourne.com.au/glossary#term-equity-release", "name": "Equity Release", "description": "Accessing the value (equity) in a property you own through a loan. Commonly used to fund deposits, renovations, or business opportunities.", "url": "https://bridgingloanmelbourne.com.au/glossary#term-equity-release" }, { "@type": "DefinedTerm", "@id": "https://bridgingloanmelbourne.com.au/glossary#term-peak-debt", "name": "Peak Debt", "description": "The maximum total debt during a bridging period - typically when you own two properties before selling the first. Lenders assess your ability to service peak debt.", "url": "https://bridgingloanmelbourne.com.au/glossary#term-peak-debt" }, { "@type": "DefinedTerm", "@id": "https://bridgingloanmelbourne.com.au/glossary#term-simultaneous-settlement", "name": "Simultaneous Settlement", "description": "When the sale of one property and purchase of another settle on the same day, eliminating the need for bridging finance. Difficult to coordinate in practice.", "url": "https://bridgingloanmelbourne.com.au/glossary#term-simultaneous-settlement" }, { "@type": "DefinedTerm", "@id": "https://bridgingloanmelbourne.com.au/glossary#term-monthly-interest-rate", "name": "Monthly Interest Rate", "description": "The interest rate charged per month on a bridging loan, typically ranging from 0.8% to 1.5%. Multiply by 12 for an approximate annual comparison rate.", "url": "https://bridgingloanmelbourne.com.au/glossary#term-monthly-interest-rate" }, { "@type": "DefinedTerm", "@id": "https://bridgingloanmelbourne.com.au/glossary#term-comparison-rate", "name": "Comparison Rate", "description": "A rate that includes both the interest rate and most fees, designed to help compare different loan products. Required by law to be displayed alongside advertised rates.", "url": "https://bridgingloanmelbourne.com.au/glossary#term-comparison-rate" }, { "@type": "DefinedTerm", "@id": "https://bridgingloanmelbourne.com.au/glossary#term-valuation-fee", "name": "Valuation Fee", "description": "The cost of having a property professionally valued to determine its market worth. Required by lenders to confirm the security value before approving a loan.", "url": "https://bridgingloanmelbourne.com.au/glossary#term-valuation-fee" }, { "@type": "DefinedTerm", "@id": "https://bridgingloanmelbourne.com.au/glossary#term-exit-fee", "name": "Exit Fee", "description": "A fee charged when you repay and close the loan. Some lenders charge early exit fees if you repay before the minimum term. Look for lenders with no exit fees.", "url": "https://bridgingloanmelbourne.com.au/glossary#term-exit-fee" }, { "@type": "DefinedTerm", "@id": "https://bridgingloanmelbourne.com.au/glossary#term-line-fee", "name": "Line Fee", "description": "An ongoing fee charged for having a facility available, even if not fully drawn. More common in business and development finance than residential bridging.", "url": "https://bridgingloanmelbourne.com.au/glossary#term-line-fee" }, { "@type": "DefinedTerm", "@id": "https://bridgingloanmelbourne.com.au/glossary#term-default-interest", "name": "Default Interest", "description": "A higher interest rate that applies if loan repayments are missed or the loan isn't repaid by the agreed end date. Can significantly increase total costs.", "url": "https://bridgingloanmelbourne.com.au/glossary#term-default-interest" } ] }, { "@context": "https://schema.org", "@type": "DefinedTermSet", "name": "Bridging Finance Fundamentals", "hasDefinedTerm": [ { "@type": "DefinedTerm", "name": "Bridging Loan", "description": "A short-term loan used to 'bridge' the gap between buying a new property and selling an existing one, or to provide quick finance when traditional lenders can't meet tight timelines.", "sameAs": [ "Short-term Finance", "Settlement Gap", "Caveat Loan" ] }, { "@type": "DefinedTerm", "name": "LVR (Loan-to-Value Ratio)", "description": "The loan amount expressed as a percentage of the property's value. 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Usually 1-3% of the loan amount, covering valuations, legal costs, and administration.", "sameAs": [ "Application Fee", "Valuation Fee", "Legal Costs" ] }, { "@type": "DefinedTerm", "name": "Caveat Loan", "description": "A type of bridging finance where the lender places a caveat (legal notice) on the property title instead of a registered mortgage. Faster to arrange but typically higher rates.", "sameAs": [ "Second Mortgage", "Unregistered Security", "Fast Finance" ] }, { "@type": "DefinedTerm", "name": "First Mortgage", "description": "A loan secured by the property where the lender has first priority if the property is sold. First mortgage bridging loans typically have lower rates than second mortgages.", "sameAs": [ "Security", "Priority", "Registered Mortgage" ] }, { "@type": "DefinedTerm", "name": "Second Mortgage", "description": "A loan secured against a property that already has an existing first mortgage. Higher risk for the lender means higher interest rates for the borrower.", "sameAs": [ "First Mortgage", "Equity", "Subordinate Debt" ] }, { "@type": "DefinedTerm", "name": "Settlement Gap", "description": "The period between when you need to settle on a new property purchase and when you receive funds from selling your existing property. Bridging loans cover this gap.", "sameAs": [ "Bridging Loan", "Simultaneous Settlement", "Property Chain" ] }, { "@type": "DefinedTerm", "name": "Residual Debt", "description": "The amount still owing on a property after it's sold and settlement costs are paid. Important for calculating how much bridging finance you actually need.", "sameAs": [ "Net Proceeds", "Equity", "Settlement Statement" ] } ] }, { "@context": "https://schema.org", "@type": "DefinedTermSet", "name": "Property Finance Terms", "hasDefinedTerm": [ { "@type": "DefinedTerm", "name": "Auction Finance", "description": "Pre-approved funding specifically for property auctions where you need certainty of funds on auction day. Bridging lenders can provide approval within 24-48 hours.", "sameAs": [ "Unconditional Approval", "Deposit Bond", "Settlement Period" ] }, { "@type": "DefinedTerm", "name": "Deposit Bond", "description": "A guarantee from an insurer that replaces the need for a cash deposit at auction or exchange. Useful when your funds are tied up in your existing property.", "sameAs": [ "Auction Finance", "Cash Deposit", "Exchange of Contracts" ] }, { "@type": "DefinedTerm", "name": "Unconditional Approval", "description": "Loan approval with no outstanding conditions. Required for auction purchases where contracts are immediately binding with no cooling-off period.", "sameAs": [ "Pre-approval", "Conditional Approval", "Finance Clause" ] }, { "@type": "DefinedTerm", "name": "Equity Release", "description": "Accessing the value (equity) in a property you own through a loan. Commonly used to fund deposits, renovations, or business opportunities.", "sameAs": [ "LVR", "Refinance", "Home Equity" ] }, { "@type": "DefinedTerm", "name": "Peak Debt", "description": "The maximum total debt during a bridging period - typically when you own two properties before selling the first. Lenders assess your ability to service peak debt.", "sameAs": [ "Serviceability", "Dual Property Ownership", "Debt Servicing" ] }, { "@type": "DefinedTerm", "name": "Simultaneous Settlement", "description": "When the sale of one property and purchase of another settle on the same day, eliminating the need for bridging finance. Difficult to coordinate in practice.", "sameAs": [ "Settlement Gap", "Property Chain", "Conveyancing" ] } ] }, { "@context": "https://schema.org", "@type": "DefinedTermSet", "name": "Loan Costs & Fees", "hasDefinedTerm": [ { "@type": "DefinedTerm", "name": "Monthly Interest Rate", "description": "The interest rate charged per month on a bridging loan, typically ranging from 0.8% to 1.5%. Multiply by 12 for an approximate annual comparison rate.", "sameAs": [ "Capitalised Interest", "Annual Rate", "Comparison Rate" ] }, { "@type": "DefinedTerm", "name": "Comparison Rate", "description": "A rate that includes both the interest rate and most fees, designed to help compare different loan products. Required by law to be displayed alongside advertised rates.", "sameAs": [ "Annual Percentage Rate", "True Cost", "Hidden Fees" ] }, { "@type": "DefinedTerm", "name": "Valuation Fee", "description": "The cost of having a property professionally valued to determine its market worth. Required by lenders to confirm the security value before approving a loan.", "sameAs": [ "Establishment Fee", "Security Value", "LVR" ] }, { "@type": "DefinedTerm", "name": "Exit Fee", "description": "A fee charged when you repay and close the loan. Some lenders charge early exit fees if you repay before the minimum term. Look for lenders with no exit fees.", "sameAs": [ "Early Repayment", "Discharge Fee", "Break Costs" ] }, { "@type": "DefinedTerm", "name": "Line Fee", "description": "An ongoing fee charged for having a facility available, even if not fully drawn. More common in business and development finance than residential bridging.", "sameAs": [ "Facility Fee", "Commitment Fee", "Unused Limit Fee" ] }, { "@type": "DefinedTerm", "name": "Default Interest", "description": "A higher interest rate that applies if loan repayments are missed or the loan isn't repaid by the agreed end date. Can significantly increase total costs.", "sameAs": [ "Penalty Rate", "Late Payment", "Loan Extension" ] } ] } ] --- [](tel:+61422026728) [Call Now ](tel:+61422026728)Contact Us [![Bridging Loan Melbourne — fast short-term property finance experts](/assets/bridging-loans-logo-whBM4xTF.png "Bridging Loan Melbourne — Home")](/) [Services](/services)[Insights](/insights)[About](/about)[0422 026 728](tel:+61422026728)[Apply now](/contact)[Calculator](/calculator) Open menu 1. [Home ](/) - [Home](/) - Glossary Bridging Finance Terminology # Bridging Loan Glossary A comprehensive reference of bridging loan terms, property finance concepts, and cost-related terminology. Understanding these concepts helps you navigate bridging finance with confidence. **10** Core Terms **6** Property Terms **6** Cost Terms ## Core Bridging Loan Terms Essential terminology you'll encounter when applying for bridging finance. ## Bridging Finance Fundamentals Bridging Loan A short-term loan used to 'bridge' the gap between buying a new property and selling an existing one, or to provide quick finance when traditional lenders can't meet tight timelines. Related: Short-term Finance, Settlement Gap, Caveat Loan LVR (Loan-to-Value Ratio) The loan amount expressed as a percentage of the property's value. Bridging loans typically offer LVRs from 65% to 80% depending on the property type and borrower situation. Related: Security, Property Value, First Mortgage Capitalised Interest Interest that is added to the loan balance rather than paid monthly. Common in bridging loans where the borrower repays everything (principal + interest) at the end of the loan term. Related: Interest Rate, Total Cost, Exit Strategy Exit Strategy The planned method for repaying the bridging loan. Typically through sale of existing property, refinance to a traditional mortgage, or settlement of a property purchase. Related: Refinance, Settlement, Loan Term Establishment Fee A one-time fee charged by the lender when setting up the loan. Usually 1-3% of the loan amount, covering valuations, legal costs, and administration. Related: Application Fee, Valuation Fee, Legal Costs Caveat Loan A type of bridging finance where the lender places a caveat (legal notice) on the property title instead of a registered mortgage. Faster to arrange but typically higher rates. Related: Second Mortgage, Unregistered Security, Fast Finance First Mortgage A loan secured by the property where the lender has first priority if the property is sold. First mortgage bridging loans typically have lower rates than second mortgages. Related: Security, Priority, Registered Mortgage Second Mortgage A loan secured against a property that already has an existing first mortgage. Higher risk for the lender means higher interest rates for the borrower. Related: First Mortgage, Equity, Subordinate Debt Settlement Gap The period between when you need to settle on a new property purchase and when you receive funds from selling your existing property. Bridging loans cover this gap. Related: Bridging Loan, Simultaneous Settlement, Property Chain Residual Debt The amount still owing on a property after it's sold and settlement costs are paid. Important for calculating how much bridging finance you actually need. Related: Net Proceeds, Equity, Settlement Statement ## Property & Auction Terms Terminology related to property purchases, auctions, and real estate transactions. ## Property Finance Terms Auction Finance Pre-approved funding specifically for property auctions where you need certainty of funds on auction day. Bridging lenders can provide approval within 24-48 hours. Related: Unconditional Approval, Deposit Bond, Settlement Period Deposit Bond A guarantee from an insurer that replaces the need for a cash deposit at auction or exchange. Useful when your funds are tied up in your existing property. Related: Auction Finance, Cash Deposit, Exchange of Contracts Unconditional Approval Loan approval with no outstanding conditions. Required for auction purchases where contracts are immediately binding with no cooling-off period. Related: Pre-approval, Conditional Approval, Finance Clause Equity Release Accessing the value (equity) in a property you own through a loan. Commonly used to fund deposits, renovations, or business opportunities. Related: LVR, Refinance, Home Equity Peak Debt The maximum total debt during a bridging period - typically when you own two properties before selling the first. Lenders assess your ability to service peak debt. Related: Serviceability, Dual Property Ownership, Debt Servicing Simultaneous Settlement When the sale of one property and purchase of another settle on the same day, eliminating the need for bridging finance. Difficult to coordinate in practice. Related: Settlement Gap, Property Chain, Conveyancing ## Costs & Fees Understanding the various costs, rates, and fees associated with bridging loans. ## Loan Costs & Fees Monthly Interest Rate The interest rate charged per month on a bridging loan, typically ranging from 0.8% to 1.5%. Multiply by 12 for an approximate annual comparison rate. Related: Capitalised Interest, Annual Rate, Comparison Rate Comparison Rate A rate that includes both the interest rate and most fees, designed to help compare different loan products. Required by law to be displayed alongside advertised rates. Related: Annual Percentage Rate, True Cost, Hidden Fees Valuation Fee The cost of having a property professionally valued to determine its market worth. Required by lenders to confirm the security value before approving a loan. Related: Establishment Fee, Security Value, LVR Exit Fee A fee charged when you repay and close the loan. Some lenders charge early exit fees if you repay before the minimum term. Look for lenders with no exit fees. Related: Early Repayment, Discharge Fee, Break Costs Line Fee An ongoing fee charged for having a facility available, even if not fully drawn. More common in business and development finance than residential bridging. Related: Facility Fee, Commitment Fee, Unused Limit Fee Default Interest A higher interest rate that applies if loan repayments are missed or the loan isn't repaid by the agreed end date. Can significantly increase total costs. Related: Penalty Rate, Late Payment, Loan Extension Get Started Today ## Need Fast Finance? We Can Help. Get a free, no-obligation quote in minutes. Our team is ready to help you secure the bridging finance you need. 24hr Approvals No Upfront Fees Flexible Terms Expert Guidance [Get Your Free Quote](/contact)[0422 026 728](/contact) ![Bridging Loan Melbourne logo — Melbourne bridging finance specialists](/assets/bridging-loans-logo-whBM4xTF.png "Bridging Loan Melbourne") ### Services [Property Purchase](/services/property-purchase)[Auction Finance](/services/auction-finance)[Settlement Bridging](/services/settlement-bridging)[Renovation Finance](/services/renovation-finance)[Business Bridging](/services/business-bridging)[Development Finance](/services/development-finance) ### Suburbs [Toorak](/suburbs/toorak)[Brighton](/suburbs/brighton)[South Yarra](/suburbs/south-yarra)[Hawthorn](/suburbs/hawthorn)[St Kilda](/suburbs/st-kilda)[Malvern](/suburbs/malvern) ### Resources [Insights](/insights)[FAQs](/faq)[Glossary](/glossary)[Loan Calculator](/calculator)[Contact Us](/contact) ### Company [About Us](/about)[Our Services](/services)[Sitemap](/sitemap) ### Legal [Privacy Policy](/privacy-policy)[Terms of Service](/terms-of-service) © 2015 - 2026 Bridging Loan Melbourne Level 27, 101 Collins Street, Melbourne VIC 3000, Australia