Bridging Loans Guide
Fast settlement without waiting for bank approval. Learn how bridging finance works, typical costs and exit strategies.
What is a Bridging Loan?
A bridging loan (or bridge finance) is short-term lending that "bridges" the gap between purchasing a new property and selling an existing one, or between settlement and obtaining permanent financing.
Common Bridging Scenarios
- Buying new property before selling current home
- Fast settlement without waiting for bank approval
- Development project funding during construction
- Gap financing between property sales
- Refinancing delays or complex scenarios
- Circumventing bank delays or rejections
How Bridging Loans Work
1. Application
Submit property details and exit strategy (sale of existing property or refinance plan)
2. Quick Assessment
Lender values security and assesses exit plan. Approval within 24-48 hours
3. Settlement
Fast settlement (1-7 days typically). No lengthy documentation or employment verification
4. Interim Period
You own the new property. Bridge loan sits in first or second position
5. Exit
Sell old property or refinance into traditional mortgage to clear bridge debt
Bridging Loan Costs
Bridging loans cost more than traditional mortgages because lenders accept higher risk and faster settlement:
Bridging vs Traditional Mortgages
| Feature | Bridging | Traditional Mortgage |
|---|---|---|
| Settlement Time | 1-7 days | 2-4 weeks |
| Documentation | Minimal | Extensive |
| Interest Rate | 7.5-12% | 6-6.5% |
| Loan Term | 6-24 months typical | 20-30 years |
| Credit Check | Basic | Full verification |
| Exit Strategy | Critical requirement | Not required |
Explore Other Lending Options
Get a Bridging Loan Quote
Fast settlement. Flexible terms. Get an indicative quote within 24 hours.
Request Bridging Finance Quote