Our Services: Bridging Finance

What is Bridging Finance?

Bridging Finance enables you to purchase a new property whilst you await the sale of your existing property.

With a bridging loan, your lender will loan you the money to cover the gap between settlement and purchase. Effectively, the lender agrees to take on both mortgages.
To qualify for bridging finance, borrowers must show that they can pay their existing mortgage as well as interest costs on the new loan. Lenders may also charge exit fees from existing loans, establishment charges for the new loan, valuation fees, legal fees and penalties if you exit a fixed loan.

Lenders generally apply strict criteria to bridging finance before giving approval. Conditions can include the unconditional sale of a borrower’s existing property and restrictions on proposed settlement terms. Other conditions may be imposed on a case-by-case basis.