Can You Get a Bridging Loan for a Property Renovation?

Why banks won't fund this

Banks won't lend for purchase + renovation together. They insist on traditional mortgage for the purchase, then separate renovatio construction loan later. This is slower and more complicated than bridging.

How specialist lenders look at this differently

Specialist lenders assess deals using a different framework:

One facility covers purchase and renovation. No need to arrange purchase and renovation financing separately.
Drawdowns align with renovation progress. Funds release as work is done, protecting both parties.
Settlement is fast; renovation can begin immediately. No waiting for refinancing to complete before starting work.

Ready to explore your options?

Tell us about your situation and we'll show you what lenders can offer.

Describe Your Situation

What a typical deal looks like

Illustrative example — not a real case

A renovator buys a distressed house for $400K needing $150K in renovation work. A bank will only lend on the current (damaged) value, not the future renovated value.

Bridging lender approves a $550K facility: $400K for purchase + $150K for renovation, at 8.5% p.a. for 12 months. Property settles, renovation begins. As work completes (framework, plumbing, fitout), drawdowns are released. After 10 months, renovation is complete, property is valued at $650K, and a traditional lender refinances for $520K (80% LVR). Bridging is repaid and the renovator owns the property with $130K+ equity.

Typical deal structure

Typical loan sizes

$50K–$80M

Interest rates

4.99–30% p.a.

Loan term

6–18 months typical

Settlement speed

3–10 days

Drawdown structure

Milestone-based (progress through renovation)

Credit impaired

Accepted

LVR (based on future value)

Up to 85%–95% on completed value

Early refinance available

Yes — once substantial progress complete

Ranges shown are across our full panel of specialist lenders. Your deal may fall within a narrower range depending on your specific circumstances.

What lenders want to see

For this scenario, lenders focus on:

Purchase contract — showing property purchase price.
Valuation — current property value and estimated post-renovation value.
Renovation plan — scope of work, timeline, builder quotes.
Builder details — contractor name, experience, references.
Your renovation experience — track record with previous renovations.
Exit strategy — plan to refinance or sell once complete.

When this might not work

Specialist lending has limits:

Renovation scope is vague — lenders want detailed plans and budgets.
Builder is unvetted or inexperienced — lender will assess builder credibility.
Renovation timeline is 18+ months — bridging is too expensive for long renovations.
Property is in a declining market — if value is falling, future refinancing may be difficult.
You've failed previous renovations — track record matters to lenders.

What our panel can offer

Our panel includes specialist lenders who actively fund this scenario.

$50K–$80M
4.99–30% p.a.
6–18 months typical
3–10 days
Milestone-based (progress through renovation)
Accepted
Up to 85%–95% on completed value
Yes — once substantial progress complete

Describe your situation and we'll match you with the best options.

How to get funding — Step by step

The process is straightforward:

Step 1: Describe your deal. Tell us the property type, location, value, and what you need the funds for.
Step 2: Get matched. Our AI matches your situation against specialist lenders on our panel.
Step 3: Move forward. Contact your matched lenders directly. Settlement can happen within days.

Common questions

Can bridging cover renovation costs?

Yes. Bridging can fund both purchase and renovation. Lenders will advance funds for purchase at settlement and provide renovation drawdown as work progresses.

How does renovation drawdown work?

You provide invoices and progress photos of completed work. The lender inspects and approves, then releases the next tranche of renovation funds. This protects both you and the lender.

What if renovation costs exceed the budget?

You need to cover the overrun yourself or negotiate additional bridging. Lenders won't automatically top up—the facility is fixed.

Can I refinance before renovation is complete?

Difficult. Traditional lenders want the renovation complete before refinancing (for valuation certainty). You might refinance partway if the property appreciates substantially.

How long can I hold a renovation bridging loan?

Typical terms are 6–18 months, depending on renovation timeline. If renovation runs longer, you can negotiate an extension.