Bridging Finance

Buy Your Next Property Before Selling Your Current One

One of the biggest challenges homeowners face when upgrading, downsizing or relocating is timing.

Do you sell your existing property first and risk not finding a suitable replacement? Or do you buy first and worry about how you'll fund both properties at the same time?

Bridging Finance is designed to help solve this problem.

A bridging loan provides temporary funding that allows you to purchase a new property before selling your existing property. It can help remove the pressure of trying to coordinate settlement dates and give you greater flexibility when making property decisions.

At LaiKin Finance, we assist homeowners, investors and business owners across Melbourne, Sydney, Brisbane and regional Australia navigate bridging finance solutions and identify suitable lenders based on their circumstances.

Whether you're upgrading to a larger family home, downsizing for retirement or relocating for work, bridging finance may provide a practical solution.

What is Bridging Finance?

Bridging Finance is a short term lending solution that "bridges" the gap between purchasing a new property and selling an existing one.

Instead of waiting for your current property to sell before buying your next home, a lender may provide temporary funding to facilitate the purchase.

Once your existing property is sold, the sale proceeds are generally used to reduce or repay the bridging facility.

How Does Bridging Finance Work?

Every lender has different policies, however a typical bridging transaction involves:

Step 1

Purchase a new property before selling your existing home.

Step 2

The lender assesses the combined debt position during the bridging period.

Step 3

You continue marketing and selling your existing property.

Step 4

Settlement of your existing property occurs.

Step 5

Sale proceeds are applied to reduce or repay the bridging facility.

Step 6

The remaining debt converts to a standard home loan.

Who is Bridging Finance Suitable For?

Homeowners Upgrading

Families purchasing a larger home before selling their current residence.

Downsizers

Homeowners transitioning into a smaller property or retirement living.

Relocating Professionals

Borrowers moving interstate or changing employment locations.

Property Investors

Investors acquiring a new property while waiting for an existing property sale.

Time Sensitive Purchases

Situations where waiting for a property sale may result in a missed opportunity.

Benefits of Bridging Finance

Buy Before You Sell

Avoid the pressure of selling first and finding temporary accommodation.

Greater Flexibility

Secure your next property without relying on perfectly aligned settlement dates.

Reduced Stress

Focus on obtaining the right sale outcome rather than accepting a rushed offer.

More Time to Sell

Potentially avoid discounting your existing property to achieve a quick sale.

Common Challenges

Managing Two Properties

During the bridging period, borrowers may temporarily hold two properties.

Property Valuations

Lenders assess both the existing property and the new purchase.

Exit Strategy

A clear plan for selling the existing property is generally required.

Lender Policy Differences

Not all lenders assess bridging finance applications in the same way.

Example Scenario

A family from Melbourne had found their ideal forever home but had not yet sold their existing property.

Rather than risk losing the opportunity, they approached LaiKin Finance to explore bridging finance options.

After reviewing their equity position and expected sale proceeds, we secured a bridging facility that allowed them to purchase the new property immediately.

Their existing home was subsequently sold, and the loan converted to a standard residential mortgage.

This allowed the family to avoid temporary accommodation and move directly into their new home.

How LaiKin Finance Helps

Bridging finance requires careful planning and lender selection.

We help clients:

  • Understand how bridging finance works

  • Assess available equity

  • Compare lender policies

  • Structure the application appropriately

  • Manage the transition from bridging to long term finance

  • Coordinate with solicitors and conveyancers

Our goal is to help clients make informed decisions while minimising unnecessary stress.

LaiKin Finance provides finance solutions Australia wide. Learn more about the areas we service.

Useful Calculators

Before applying, we recommend using the following tools:

Borrowing Capacity Calculator

Estimate how much you may be able to borrow based on your income and commitments.

Home Loan Repayment Calculator

Understand how different loan amounts and interest rates may impact your repayments.

Stamp Duty Calculator

Calculate government charges and upfront costs associated with your purchase.

Current Market Rates

Compare indicative market rates and see where your current or proposed rate sits within the market.

Frequently Asked Questions

  • Bridging finance is a temporary loan designed to help borrowers purchase a new property before selling an existing property.

  • The maximum term varies between lenders.

    Many bridging facilities are designed as short term solutions until the existing property is sold.

  • No.

    The purpose of bridging finance is to allow eligible borrowers to purchase before selling.

  • Lenders generally assess:

    • Existing property value

    • New property purchase price

    • Available equity

    • Income

    • Existing liabilities

    • Proposed exit strategy

  • Potentially.

    Some lenders offer bridging solutions for investment property transactions.

  • An exit strategy explains how the bridging facility will ultimately be repaid.

    In most cases, this involves the sale of the existing property.

  • This depends on the lender and loan structure.

    Some facilities allow interest to be capitalised during the bridging period.

  • Yes.

    Many lenders assess self employed applicants, subject to standard lending requirements.

  • The amount of equity required depends on:

    • Property values

    • Loan balances

    • Purchase price

    • Lender policy

    A detailed assessment is generally required.

  • Costs vary depending on the lender, loan amount and structure.

    However, many borrowers consider the flexibility and convenience worthwhile when purchasing a new property before selling their existing home.