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Bridging Finance Explained

15 March 2023

You might have heard of bridging finance if you’ve applied for finance in the past. Bridging loans can be used to service all kinds of cash-flow needs, but they’re usually used to purchase a new home while waiting on an existing property to sell.

Just like the name suggests, a bridging loan is a short-term loan that helps you ‘bridge’ the gap from one transaction to the next.

We give you the rundown on all things bridging finance so you can determine if this type of finance is right for you.

How does it work?

Secured against an existing asset, like your property, bridging loans simply bridge the gap between two financial commitments. So, if you were using a bridging loan to purchase a new property but you hadn’t yet sold your current one, you would be utilising the equity or ‘locked up value’ in your current home to finance the next. Once you sell your existing property, you simply repay your bridging loan.

What can a bridging loan be used for?

Bridging loans can be used to streamline all kinds of cashflow barriers. Often, buyers require the profits from the sale of their home to put down a deposit on their next purchase. Bridging loans cover that in-between period, providing you funds (and some much needed breathing space!) while you sell.  

Other bridging loan uses:

Property Advertising

Advertising costs can come as a surprise to sellers. Take the stress out of paying for advertising before you sell your property with an advertise now, pay later funding solution.

Pre-sale Improvements

Maximise the value of your property before you sell with renovations or pre-sale improvements (think repairs, styling and staging and those special final touches).

GST Funding

Property Credit’s quick, simple, and short-term GST finance solution funds 100% of the GST on your commercial property purchase meaning you can complete your next purchase without the roadblocks!


Of course, these are just some examples of how bridging finance can streamline financial roadblocks. Whether you’re selling to upsize, downsize, retire, or simply pay off debt, Property Credit can help you access the equity in your home for any number of cash-flow requirements.

What are the requirements for a Property Credit bridging loan?

You must be actively selling your property and have a signed exclusive sales agreement with a licensed agency.

What do they cost?

While many banks and lenders charge interest rates or fees along the way, Property Credit offers a straightforward monthly admin fee that we disclose upfront when you apply for our service. You simply repay the principal amount borrowed plus the monthly admin fee at the settlement of your property.

Visit property.credit for more information on our services or you can contact us on 1300 829 536 (au) or 03 668 2144 (nz).

This article is for general information purposes only and is not intended as financial product advice. Consider seeking independent financial advice that relates to your individual circumstances.

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