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Equity Release vs Bridging Finance — What’s the Difference?

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When it comes to accessing funds tied up in property, ‘bridging finance’ is a term you’ve probably heard of. It’s an industry term for a short-term loan used to ‘bridge’ the gap between the purchase of a new property and the sale of an existing one. We use the term because it’s easily recognisable for our sellers and agents, but we also use the term ‘equity release’ or ‘equity release funding’ so what exactly is the difference?

We offer more than just bridging finance

Sometimes our clients come to us for a simple bridging loan, which we can absolutely assist with. But what our clients are often surprised to learn, is that what we offer is actually a step up from traditional bridging finance.

Rather than simply offer you a one-time bridging loan, Property Credit evaluates your home’s equity and offers you access to that equity in the form of a flexible funding facility that you can redraw from time and time again as it’s needed over the course of your sale period. This can cover everything from pre-sale improvements that can increase your home’s market value, to advertising fees. You can also use this facility as a deposit for your next property.

The term ‘equity release’ better describes the Property Credit difference. We offer our clients an equity-based facility that can cover a whole host of cash-flow requirements over the property sale period, as opposed to a simple one-time bridging loan.

All roads lead to Rome

While pre-sale improvements are a popular stage for sellers to start their journey with Property Credit, you can access your home’s equity (and therefore funding facility) at any stage of the property sale.

Whether you’re about to list or awaiting settlement, there is an opportunity to unlock the financial power of your current home to help get you closer to your future plans. We help turn the equity in your home into an active participant in your transition — it’s not just about moving houses, but moving forward in your life with ease.

The Property Credit difference

Your journey with Property Credit comes to an end when your property settles, and the loan total is paid out of settlement. It’s that simple. Plus, unlike traditional banks that generally require lengthy applications and a lot of ‘jumping through hoops’ our process is simple, easy and fast, meaning less stress, and a more streamlined sale.

Visit 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.

Buy and sell property on your terms

There's so much to consider when buying or selling. Below are just some of the opportunities equity release can offer over the course of a property sale. 

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Furniture & Home Staging

Cover the costs of furniture and home decor staging for your property for sale.
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Bridging Loans

Selling your property? Access up to 80% of its value with a Bridging loan.
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Buyer Deposit Facility

Fund your auction deposit using equity from the property you’re selling.
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Equity Release

Selling your property? Access up to 80% of its value.
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Property Advertising

Fund up-front advertising costs when selling your property.
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Pre-sale Improvements

Increase saleability with pre-sale improvements and staging.
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Investment Property Expenses

Cover costs related to your investment property and repay with rental income.
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GST Loan

Need to fund the GST on your commercial property purchase? We've got you covered.

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