Everything a Brisbane buyer needs to understand before taking out short-term property finance — in plain English, no jargon.
A bridging loan is short-term finance secured against property that covers the gap between buying and selling. It lets you settle on a new property before your existing one sells, then is repaid from the sale proceeds or by refinancing to a mainstream lender.
Because the lender is pricing speed and a short horizon rather than a 30-year relationship, the assessment looks different: your security and your exit matter more than your payslips.
At a glance
A worked example: you own a $1.25M home with a $420K mortgage and you're buying at $1.6M before your sale settles.
The lender adds your existing mortgage, the new purchase price and costs. That total — around $2.05M here — is your peak debt.
You settle the purchase and own both homes for a period. Interest on the bridging portion is usually capitalised, so there's nothing extra to pay monthly.
Net sale proceeds are applied straight to the facility, clearing the bridging portion and the old mortgage.
What's left is your ongoing home loan on the new property — the end debt. That's the number your long-term repayments are based on.
Your existing property isn't under an unconditional contract yet. The lender carries more uncertainty about when the exit happens, so expect a tighter LVR and slightly higher pricing.
Best when: you've found the right property and can't wait for your sale to be under contract.Your sale is under an unconditional contract with a known settlement date. The exit is defined, which usually means sharper pricing and a faster approval.
Best when: settlement dates simply don't line up and you need to cover the overlap.Bridging finance is priced on risk, not on a rate card. Three things move your number: the quality of the security, the LVR, and how certain the exit is. Rates sit above standard home loans because the facility is short-term and funded fast.
Interest is often capitalised into the facility, so there are no monthly repayments while both properties are held. Every cost below is quoted in writing before you commit.
If you have real equity in Queensland property and a credible way out, you're likely eligible. Credit history matters far less than it does with a bank.
Check my eligibilityThe most important part
An exit strategy is simply how the loan gets repaid. Because the term is short, this is the single biggest factor in whether a deal is approved — and at what price.