Why timing doesn't always line up when selling and buying
You've found your dream home. The price is right, the location is perfect, and you're ready to make an offer. There's just one problem: your current home hasn't sold yet. You can't complete the purchase without funds, and you can't get funds without selling. So you're stuck.
This is the timing gap that stops thousands of people from moving. Banks expect you to sell first, then buy — but the market doesn't work that way. The property you want won't wait. Your current home might take weeks or months to sell. You need money now, not later.
How a bridging loan solves the timing gap
A bridging loan is short-term finance that covers this exact gap. It works like this: you borrow money against the value of your current home, use that money to buy your new home, and repay the bridging loan as soon as your old home sells.
The lender doesn't care about selling timelines or bank approvals. They care about the value of your property. If you have equity — the difference between what your home is worth and what you owe on it — a lender will give you access to that equity immediately. This means you can buy when the right property comes along, not when the market forces you to.
Timing getting in the way?
Tell us your situation in a few words and we'll show you what's possible.
Check Your OptionsWhat a typical deal looks like
Illustrative example — not a real caseImagine a family who owns a home worth $900,000. They have a mortgage of $400,000, so they have $500,000 in equity. They find the perfect new home for $1.3 million, but their current house is still on the market — it has offers coming, but nothing has settled yet.
A bridging lender offers a loan of $500,000, secured against both properties. The family uses this to settle on the $1.3 million home. Their old home sells three months later for $920,000. They repay the bridging loan ($500,000) plus interest, and they're left with a new home and no stress about timing.
What lenders want to see
Bridging lenders keep it simple. They're not looking for perfect credit or years of payslips. They focus on three things:
- Current property value. A recent valuation or evidence of the market value. This is the security for part of the loan.
- New property purchase contract. Evidence that you've made an offer and it's been accepted. This shows the loan amount and your commitment to buying.
- Exit strategy. How will you repay the loan? The obvious answer is "when my old house sells" — and that's enough for most lenders, especially if the property is listed or in active marketing.
- Equity position. Combined with what you owe, is there enough equity in both properties? This determines how much a lender will advance.
When a bridging loan might not work
Bridging loans are flexible, but they're not right for every situation. A deal might not stack up if:
- Your current home has no equity — or you owe more than it's worth. Without equity, there's nothing for the lender to secure against.
- The new property you're buying is significantly more expensive than your current home, and the combined LVR becomes too high. Lenders have limits, usually up to 95% of combined property value.
- You have no realistic exit strategy — for example, your property has been on the market for over 12 months with no serious interest. Lenders need to believe the sale will happen.
- You have major legal issues on the property — like unregistered building work, planning breaches, or disputes with neighbors. These can prevent settlement.
Our panel includes specialist bridging lenders who focus on the selling-and-buying scenario. Across these lenders:
- Settlement in as fast as 1–5 business days — you can settle on your new home within days, not weeks
- Lo doc available — most bridging lenders don't require full financials or payslips
- Credit-impaired borrowers accepted — your credit file doesn't stop a bridging deal if the equity is there
- Coverage across all Australian states and territories — whether you're in a capital city or a regional area
- Loan sizes from $50K up to $80M — covering everything from small purchases to large property portfolios
The exact lender and terms depend on your specific deal. Describe your situation and our AI will match you with the most suitable bridging lenders.
How to get a bridging loan when selling and buying
The process is straightforward and fast:
- Step 1: Describe your situation. Tell us the value of your current home, how much you owe on it, the price of the new property you're buying, and roughly when you expect your current home to sell. You don't need exact figures — estimates are fine.
- Step 2: Get matched with lenders. Our AI checks your scenario against specialist bridging lenders on our panel and shows you which ones are likely to approve your deal, with explanations of the terms and interest rates.
- Step 3: Connect and move forward. Speak directly with the lender. They can give you an indication within 24–48 hours, and settlement can happen within 1–5 business days for straightforward deals.