Lane 7 of 7
Bridging finance
Short-term borrowing that covers the gap when you buy before you sell, priced on the assumption the gap closes quickly.
You are in this lane if
- You have bought, or are about to buy, before your existing property settles
- You have meaningful equity in the property you are selling
- You have a realistic sale timeframe, not a hopeful one
You are not, if
- You have not listed the outgoing property and have no plan to — bridging without an exit is just an expensive loan
- Your two settlements are the same day and can be aligned by the conveyancers instead
What actually decides the outcome
In order. Getting these settled first is the difference between a useful conversation and three weeks of email.
- What is the peak debt, and can you service it? For a period you owe both amounts. Some lenders capitalise the interest instead of requiring payments, which raises the end debt.
- How long is the bridging term? Terms are typically six to twelve months. Running past the term is where the cost escalates.
- What sale price is the plan built on? If the outgoing property sells for less than assumed, the residual debt is yours to carry on the new loan.
- Is it closed or open bridging? Closed bridging has an unconditional contract on the outgoing property. Open bridging does not, and is priced for that risk.
Have this ready
Assembled before you start, not chased afterwards.
- Contract of sale for the incoming property
- Listing agreement, marketing plan or contract for the outgoing property
- Current loan statements and a payout figure
- Income evidence able to support the end debt, not just the bridging period
Where people get caught
- Assuming the interest is paid at the end for free. Capitalised interest compounds into the end debt.
- Treating an appraisal as a sale price.
- Forgetting that you still pay rates, insurance and strata on both properties during the bridge.
The official source
These set the rule. Anyone describing it to you — including this page — is a summary, and summaries go stale.
Structure of this page reviewed 17 August 2026. Follow the links for the current position.
How your income changes this lane
Not your lane after all?
General information. General information about how Australian lending is organised. Rules, thresholds and eligibility are set by government agencies and change; each lane links to the source so you can check the current position. It does not take your own circumstances into account.