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Bridge the gap of selling and buying
Want to Buy Before You Sell?
Bridging finance lets you secure your next home before your current one sells — but the structure, timing, and cash flow all need to be right.
Here's How to Do It Without the Stress
We walk you through every option and help you decide if bridging is actually the right move for your situation.
Bridging Finance - what is it?
A bridging loan is short-term finance that allows you to purchase a new property before your current home sells.
In plain English, it covers the “in-between” period so you don’t have to sell first or move into temporary accommodation.
Common scenarios include:
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Your guide to moving home without the timing stress
Bridging finance makes it easier to buy a new home before selling your current one. This guide explains how bridging loans work, how repayments are calculated, what banks look for, and how to plan your cash flow during the transition. Whether you're upsizing or downsizing, we’ll help you navigate it all confidently.
If you’d like to brush up on the basics before looking at bridging loans, our home loan guides explain how lending, repayments, and loan structures work more generally.
Buy Before You Sell Options
Understand the options for buying your next home before selling your current one, including bridging loans, extended settlement periods, and alternative structures. We help you choose the option that fits your timing, equity, and risk tolerance.
How Bridging Loan Timelines Work
Learn how typical bridging loan timeframes operate, from purchase through to sale. This covers peak debt periods, standard loan terms, and what happens if your property sells sooner or later than expected.
Bridging Loan Repayments Explained
See how repayments are calculated during the bridging period, including interest-only options and capitalised interest. We explain what lenders expect and how repayments change once your existing property is sold.
Cash Flow Planning During the Transition
Buying and selling simultaneously puts pressure on cash flow. We help you model repayments, living costs, buffers, and sale proceeds so you’re not stretched during the bridging period.
Upsizing & Downsizing Support
Whether you’re upsizing for more space or downsizing to unlock equity, bridging finance needs to be structured carefully. We tailor the loan setup to suit lifestyle changes, income shifts, and future plans.
Timing Simultaneous Settlements
Where possible, we help align sale and purchase settlements to reduce costs and risk. This card explains when bridging is needed, when it can be avoided, and how lenders assess overlapping settlements.
How Does Bridging Finance Work?
Bridging finance is designed as a temporary solution, typically offered for 6 to 12 months.
Types of bridging loans:
- Closed bridging: You’ve already exchanged contracts on your current home (sale date is set).
- Open bridging: Your home isn’t under contract yet, so timing is less certain.
Repayment options:
- Capitalised interest: Interest accrues during the bridging period and is added to your loan balance when your home sells.
- Regular repayments: You continue making repayments throughout the bridging period.
Example:
- Buying new property: $850,000
- Selling current property: $700,000
- Bridging loan covers the $150,000 shortfall plus costs until the sale settles.
Pros & Cons of Bridging Loans
You don’t have to wait until your home loan is paid off. Many clients access their existing home equity to fund a deposit on their first or next investment property. It’s a smart way to start building your portfolio without selling your current home.
Advantages
Disadvantages
Buy First vs Sell First – Which is Better?
- Buying first: Gives you choice and time to find the right home, avoids missing out in competitive
- Selling first: Provides certainty and avoids bridging costs, but may leave you renting in the interim.
In Brisbane’s fast-moving suburbs, many buyers prefer bridging so they don’t miss opportunities.
How Much Can You Borrow with a Bridging Loan?
Most lenders allow bridging finance up to 80% of the combined value of both properties.
Key factors include:
- Your equity position
- Sale price of your existing property
- Lender policies (some major banks don’t offer bridging loans at all)
Costs & Risks of Bridging Finance
Bridging loans can be more expensive than standard mortgages.
Typical costs include:
- Higher interest rates
- Holding costs for two properties (rates, insurance, utilities)
- Potentially extended marketing time if the sale takes longer than expected
Tip: Always build a buffer into your planning to cover delays or a lower-than-expected sale price.
Real Client Examples
- Upsizers in Brisbane: A family upgrading from a townhouse to a larger home used bridging finance for four months until their old home sold.
- North Lakes downsizer: A retiree secured a unit before listing their house, using bridging to avoid renting.
- Investor case study: Bridging finance allowed seamless settlement between selling one investment and purchasing another.
Alternatives to Bridging Loans
If bridging isn’t the right fit, you might consider:
- Extended settlement agreements (align purchase with sale timelines)
- Rent-back arrangement (sell but continue living in the property short-term)
- Subject-to-sale contracts (offer conditional on selling your home)
Each comes with trade-offs in flexibility and negotiating power
Why Use a Mortgage Broker for Bridging Finance?
Not all lenders offer bridging loans, and policies vary widely. A broker ensures you:
- Find lenders who actually provide bridging options
- Compare terms, costs, and repayment structures
- Align your bridging loan with a long-term refinancing strategy
- Get advice tailored to the Brisbane property market
Take the Next Step
Buying before selling can feel daunting, but with the right finance strategy, it doesn’t have to be.
📞 Book a Free Strategy Call today to see if bridging finance suits your situation.
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Frequently asked questions
A bridging loan is short-term finance that lets you buy a new property before your current home sells.
Most bridging loans last 6–12 months, though some lenders may offer longer.
No, only selected banks and lenders provide bridging finance.
Higher interest costs, the risk of delays in selling, and potential for carrying two sets of expenses.
Yes, alternatives include subject-to-sale contracts, rent-back arrangements, or longer settlements.
Yes, bridging loans usually carry higher rates and fees than standard home loans.
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