Bridging finance
When the right property arrives before your current home sells, bridging finance may help connect the two transactions. It needs careful planning around cash flow, sale timing and your exit strategy.
Understand the two stages
A bridging structure may include a period when both properties contribute to your overall debt, followed by a smaller ongoing loan after the sale. The peak debt, expected sale proceeds and end debt all need to be considered together.
Build in a realistic sale plan
Your expected sale price and time to sell are important assumptions, not guarantees. We’ll discuss what happens if the sale takes longer or the proceeds are lower than expected, as well as the lender’s maximum bridging period.
Allow for the full cost
Interest treatment varies by lender and product. Some facilities may capitalise interest, which increases the balance. Purchase costs, sale costs, fees and any required ongoing repayments also need to be included in the assessment.
Compare the alternatives
Bridging is not suitable for every borrower. Selling first, negotiating settlement timing or considering other funding arrangements may be worth discussing. Get legal advice on contracts and settlement obligations before committing.
Talk early
Bring your estimated property values, existing loan balance and preferred purchase timeline to the first conversation. Blake can help you understand the lending questions before you make an offer. All options are subject to lender assessment and approval.
Let’s work out what fits.
Tell Blake a little about your plans. We’ll take it from there, one clear step at a time.