ACL 390611 | MFAA Member | Established 2005
Bridging Loans.Buy the Next One First.
A bridging loan covers the gap between buying your next home and selling your current one, so you are not forced to sell first and rent in between. It is priced on the debt you carry while you hold both, and it is settled by what the old place actually sells for. Both of those need working out before you bid.
15 minutes, ideally before you go to an auction. Bring what you owe and what you think your place is worth. No credit check, no paperwork, no obligation. If selling first is the safer answer for your situation, we will tell you that. Lenders pay us a commission on settlement and we disclose it in writing before any work begins.
Intellect Finance – Bridging Loan Specialists
Independent since 2005 | ACL 390611What Is a Bridging Loan and How Does It Work?
A bridging loan is short-term finance covering the period between buying a new property and selling your existing one. ASIC defines bridging finance in exactly those terms. It lets you settle on the new place before the old one has sold, then reduces to a normal home loan once the sale proceeds arrive.
During the bridging period you owe what lenders call peak debt: your existing loan, plus the new purchase, plus the costs of both. Interest is usually capitalised rather than paid monthly, which means it is added to the balance while you hold two properties. Nothing is repaid until the first one sells.
When the sale settles, the net proceeds come off the peak debt and what remains becomes your end debt, on a standard home loan. That end debt is the number that actually matters, and it is decided by what the old property sells for rather than what you hoped it would sell for.
Common Situations
When a Bridging Loan Is the Right Tool
Six situations account for most bridging enquiries. In two of them the answer is usually to sell first, and we will say which.
You found the right place before you listed
The classic case, and the one bridging exists for. The alternative is losing a property you want because your own is not on the market yet, which in a moving market is an expensive kind of caution.
Downsizing with plenty of equity
Usually the most comfortable bridging position, because the end debt after the sale is small or nil. The risk sits in the timing rather than in the numbers, and lenders assess it accordingly.
There is an auction and no cooling off
Auction contracts are usually unconditional, so the finance has to be sorted before you bid. Bridging approval in place beforehand is what makes bidding possible at all. See mortgage pre-approval.
Building while you live in the current home
A different structure again, because the new property does not exist yet and funds release in stages. See construction and renovation loans, which sometimes replaces bridging entirely.
Your place is unusual or slow to move
Acreage, a unique home, a soft local market. This is where bridging gets dangerous, because the bridge is priced on an assumed sale that may take much longer than you expect. Often the answer is sell first.
The settlement dates simply do not line up
Sometimes it is weeks rather than months, and a shorter, cheaper solution exists. Worth checking whether a simultaneous settlement or a delayed settlement clause solves it before taking a bridging facility at all.
Social Proof
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Upgraders, downsizers, first home buyers and investors. Pulled live from Google, not curated by us.
Joseph Sukkar
Principal Broker · ACL 390611
Who You’re Dealing With
Built on 25 Years in Australian Finance
Joseph Sukkar started in finance in 2000 and founded Intellect Finance in Penrith in 2005. Since then the team has arranged more than 6,500 loans for clients across Australia, from first homes to complex commercial and asset finance.
Bridging sits with Moufid, our Head of Residential Lending, who has run bridges through two slow markets and one very fast one. It is the kind of file where the useful work happens before anything is submitted, because the rate is rarely what decides a bridge. The term, what happens when it expires, and whether the end debt still works on a disappointing sale are what decide it.
100+ Lenders Including
Accreditation with a lender is not an endorsement by it. Which lender suits you is decided by your file, not by who is on this list.
Found Something Before You Listed?
Fifteen minutes tells you whether bridging works. No credit check.What Actually Decides It
A Bridging Loan Is Priced on Peak Debt and Settled by the Sale
Bridging finance is not really a loan against the new property. It is a short-term facility against both properties, sized on what you owe at the peak and resolved by what the old one sells for. Six things decide whether it is comfortable or expensive.
Peak debt is the real exposure
Peak debt is your existing loan, plus the price of the new property, plus stamp duty and the costs of both transactions. For a few months you owe all of it against two properties. That figure, not the purchase price, is what a lender is actually assessing.
Capitalised interest means the debt grows
On most bridging facilities you make no repayments during the bridge. The interest is added to the balance instead. That is a genuine cash flow relief while you are running two properties, and it also means every extra week on the market costs you more than the week before.
The sale sets your end debt
When the old property settles, the net proceeds reduce the peak debt and what is left becomes your ongoing loan. Sell for less than you assumed and the end debt is larger, permanently. The whole facility should be structured so that you can still service the end debt if the sale disappoints.
Closed and open bridging are different animals
Closed bridging means your existing property is already under an exchanged contract with a settlement date. Open bridging means it is not sold yet. Far more lenders will write the first, on better terms, because the exit is known rather than assumed.
Owner-occupier bridging sits outside the debt-to-income limit
Since February 2026 banks may write no more than 20 per cent of new mortgage lending at a debt-to-income ratio of six or higher. APRA excluded bridging loans for owner-occupiers from that limit. Given peak debt would otherwise look extreme on any ratio, this exclusion is the reason bridging remains practical at all.
Stamp duty falls due before the old place settles
In New South Wales, transfer duty is paid by the purchaser at the earliest of settlement or within three months of signing the contract for sale, and Revenue NSW charges daily interest on anything overdue. Buying first means that bill arrives while your money is still in the other house.
Checked 31 August 2026. Bridging finance is defined by ASIC Moneysmart. The debt-to-income limit and the exclusion of owner-occupier bridging loans are described by APRA. Transfer duty timing is published by Revenue NSW and is a New South Wales position. Best Interests Duty is set out in ASIC Regulatory Guide 273. Everything else on this page is described in the important information at the foot of the page.
The number worth modelling is not the bridging rate. It is the end debt if your property sells for less than you expect, and how long you can carry the peak if it does not sell on schedule. Ask us to run both.
The Honest Comparison
Buy First or Sell First?
This is the whole decision, and it is a question about your risk tolerance and your local market rather than about finance. Here are both sides properly.
Sell then buy
- You know exactly what you have to spend, because the sale price is a fact rather than an estimate
- No peak debt, no capitalised interest, no second set of holding costs
- You are a cash-ready buyer, which is worth something in a negotiation
- You may need to rent, move twice, and store furniture in between
- In a rising market the money you banked buys less each month you look
Buy first with a bridging loan
- You can act on the right property when it appears, including at auction
- One move instead of two, with no rental gap and no storage
- You sell without a deadline, which usually means selling better
- Peak debt, capitalised interest, and a balance that grows every week it takes
- If the sale disappoints, the end debt is larger and it is permanent
If your property is unusual, or your local market is slow, sell first. Bridging is priced on an assumption about how quickly your place will sell, and that assumption is doing all the work. On an ordinary house in a suburb with regular turnover, it is a reasonable assumption and a bridge is a sensible piece of engineering. On acreage, on something architecturally unusual, on a soft market or in a segment with very few buyers, it is a guess, and a bridge that runs six months longer than planned is expensive in a way that compounds. Selling first and renting for three months is cheaper than most people assume, and far cheaper than carrying peak debt on two properties into a market that has stopped moving. We would rather arrange your finance twice, once for the sale and once for the purchase, than write a bridge that turns into a problem. Ask us to model the end debt on a sale price ten per cent below your expectation. If that number still works, bridge. If it does not, sell first.
Ask Us to Model the Version You Do Not Want
End debt on a sale ten per cent under expectation, and the cost of carrying the peak two months longer. Fifteen minutes. No credit check.The Difference
Bridging Is a Timing Product and Timing Is What Goes Wrong
The rate matters less here than almost anywhere else in lending. What matters is the bridging term, what happens when it expires, and whether the end debt still works if the sale comes in under.
We Model the Bad Version First
End debt on a sale price below your expectation, and the peak carried for longer than planned. If the facility only works on the optimistic numbers it is not a facility, it is a bet, and you should know which one you are being offered.
Few Lenders Do This Well
Bridging policy varies more than almost any residential product. Maximum term, whether interest capitalises, how peak debt is calculated, and appetite for open bridging where nothing is under contract yet. The lender that suits your purchase may be nowhere near the top of a rate table.
No Fee. Not Even Clawback.
We do not charge you for the comparison, the structuring or the application, on any loan type. If you discharge the loan early we wear the clawback ourselves rather than invoicing you for it, which plenty of brokers do. Lenders pay a commission on settlement, disclosed to you in writing before any work begins.
Legally On Your Side
Bridging finance on the home you live in is regulated consumer credit, so Best Interests Duty applies. We must act in your best interests and give priority to your interests where they conflict with ours. Those obligations have applied to mortgage brokers since 1 January 2021.
The Process
How a Bridging Loan Comes Together
Four steps, and the first one should happen before you bid rather than after.
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15 minutes
Both properties and an honest sale estimate
What you owe, what your place is realistically worth, what you are looking to buy and how quickly properties like yours are selling locally. No documents and no credit check. You finish the call knowing your peak debt, your likely end debt, and whether bridging suits at all.
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We model
The pessimistic case
End debt if the sale lands below expectation, and the cost of carrying the peak beyond the planned bridging term. This is the number that decides whether to proceed, and it is the one nobody volunteers.
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You gather
Documents
Both properties are assessed, so there is more here than on an ordinary purchase. We confirm exactly what your chosen lender wants before you chase any of it.
- Photo identification
- Two recent payslips
- Latest tax return or group certificate
- Six months of statements on your existing loan
- Rates notice for the property you are selling
- Agent appraisal or listing evidence
- Contract of sale on the new purchase
- Exchanged contract on the sale, if you have one
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We manage
Two valuations then two settlements
Both properties are valued, the facility settles on the new purchase, and we stay with it until the old property settles and the loan reduces to the end debt. That second settlement is the one that closes the file, and it is the part most brokers are no longer around for.
Track Record
Independent Since 2005
Joe Sukkar started in finance in 2000 and founded the practice five years later. Residential lending sits with Moufid, who has run bridges through two slow markets and one very fast one.
Related Options
Other Ways to Handle the Gap
Bridging is one solution to a timing problem. These are the others worth pricing against it.
Cash-out refinance
Releasing equity for the deposit and settling normally, where the timing allows it.
Mortgage pre-approval
Essential before an auction, with or without a bridging facility behind it.
Construction and renovation loans
Where the next home is being built rather than bought, and funds release in stages.
Refinance home loan
Once the sale has settled and the end debt should be sitting somewhere better.
Investment loans
If keeping the old place as a rental beats selling it, which is worth checking first.
Every home loan we arrange
Back up to the full residential range if none of these is quite it.
Model the End Debt Before You Bid.
Fifteen minutes, and you will know whether to bridge or sell first.Questions Answered
Bridging Loan FAQs
The questions upgraders and downsizers ask us most often before getting in touch.
What is a bridging loan?
ASIC defines bridging finance as short-term finance covering the period between buying a new property and selling your existing one. It lets you settle on the new place before the old one has sold. Once the sale proceeds arrive they reduce the debt, and what remains converts to a standard home loan.
How does peak debt work on a bridging loan?
Peak debt is what you owe while you hold both properties: your existing loan, plus the price of the new property, plus stamp duty and the costs of both transactions. It is the figure the lender assesses. When the old property sells, the net proceeds reduce it and the remainder becomes your end debt.
Do I make repayments during the bridging period?
On most bridging facilities, no. Interest is capitalised, meaning it is added to the balance rather than paid monthly. That helps cash flow while you are carrying two properties, and it also means the debt grows for every extra week the sale takes. Terms differ between lenders.
What happens if my property does not sell in time?
Additional interest accrues and the lender’s terms on expiry of the bridging period apply, which differ between lenders and can include a higher rate. This is the main risk in bridging, and it is why the facility should be structured on a realistic selling time rather than an optimistic one.
What is the difference between closed and open bridging?
Closed bridging means your existing property is already under an exchanged contract with a known settlement date, so the exit is certain. Open bridging means it has not sold yet. Far more lenders will write closed bridging, generally on better terms, because they are lending against a known outcome rather than an assumption.
Does a bridging loan count toward the debt-to-income limit?
Not for owner-occupiers. Since 1 February 2026 banks may write no more than 20 per cent of new mortgage lending at a debt-to-income ratio of six or higher, and APRA excluded bridging loans for owner-occupiers from that limit. Given peak debt would look extreme on any ratio, that exclusion is what keeps bridging workable.
When is stamp duty due if I buy before I sell?
In New South Wales, transfer duty is paid by the purchaser at the earliest of settlement or within three months of signing the contract for sale, and Revenue NSW charges daily interest on overdue amounts. Buying first means that bill arrives while your money is still tied up in the property you are selling.
Does Best Interests Duty apply, and what does Intellect Finance charge?
Yes it applies. Bridging finance on a home you will live in is regulated consumer credit, so brokers must act in your best interests and give priority to your interests where they conflict with ours. We charge you nothing on any loan type, and no clawback fee if you discharge early. Lenders pay a commission on settlement.
Visit Us
Penrith Based.Clients Australia-Wide.
Penrith is our head office and the one you can walk into without an appointment. We also meet clients at Parramatta and in the Sydney CBD by arrangement. Most of the process runs by phone, email and video, so we arrange bridging finance in every state.
Parramatta
Suite 23, Level 1, 181 Church St, Parramatta NSW 2150
Mortgage broker Parramatta →Ready When You Are
Know the Numbers Before You Bid.
Fifteen minutes with a residential specialist. Tell us what you owe and what your place is realistically worth, and we’ll give you your peak debt, your likely end debt, and the version where the sale comes in ten per cent under. If that number does not work, we’ll tell you to sell first. No credit check, no paperwork, no obligation. Penrith based, clients Australia-wide. Intellect Finance Pty Ltd, ACL 390611.
A home loan for a property you will live in is regulated consumer credit, so Intellect Finance is legally required to act in your best interests under the Best Interests Duty in the National Consumer Credit Protection Act. Bridging finance carries the risk that your existing property sells for less, or takes longer, than expected. Transfer duty timing described on this page is a New South Wales position and differs in other states. Nothing on this page is credit assistance, legal advice or an offer of credit, and no outcome is guaranteed.
Intellect Finance Pty Ltd | Australian Credit Licence 390611 | MFAA Member | AFCA Member
Important information General information only. Not credit assistance, legal advice or an offer of credit. We charge you no fee. Every caveat and source on this page is collected here. Tap to read.
General information only. The content on this page is general in nature and does not take into account your objectives, financial situation or needs. It is not credit assistance, financial advice, legal advice or tax advice, and it is not an offer of credit. You should consider whether it is appropriate for you and seek your own advice before acting on it.
Bridging carries sale risk, and it sits with you. A bridging facility is sized on an assumption about what your existing property will sell for and how long it will take. If it sells for less, your end debt is permanently larger. If it takes longer than the bridging term, additional interest accrues and the lender’s terms on expiry apply. Property values, selling times and agent appraisals are estimates and are not guarantees. Model the outcome you do not want before you commit to the one you do.
Capitalised interest increases the balance. Where interest is capitalised during a bridging period rather than repaid, the amount you owe grows for the whole time you hold both properties. Whether interest capitalises, for how long, maximum bridging periods, how peak debt is calculated and what happens at the end of the bridging term are set by individual lenders and differ significantly between them.
State duties. Transfer duty timing described on this page is the New South Wales position published by Revenue NSW. Every state and territory sets its own duty rules, rates and deadlines. We are not solicitors or tax agents. Duty is a matter for your conveyancer or solicitor, not for us.
Financial difficulty. If you are having trouble making repayments, you can ask your lender for hardship assistance. Free and confidential financial counselling is available through the National Debt Helpline on 1800 007 007.
Nothing here is a guarantee of approval. Loan approval, borrowing capacity, interest rates, loan to value ratios, valuations, bridging terms and eligibility are determined by individual lenders and by independent valuers, not by us. They differ between lenders and change over time. Any figure or timeframe on this page is indicative and is not a quote, an offer, or a prediction of your outcome. Timeframes vary with the lenders, the valuers and the market, and are not guaranteed.
Best Interests Duty. A home loan for a property you will live in is regulated consumer credit under the National Consumer Credit Protection Act 2009. When providing credit assistance in relation to these products, Intellect Finance is required to act in your best interests and, where there is a conflict of interest, to give priority to your interests. These obligations have applied to mortgage brokers since 1 January 2021.
How we are paid. Intellect Finance does not charge borrowers a fee for arranging finance, and does not charge a clawback fee where a loan is discharged early. Lenders pay us a commission on settlement. The basis of that commission is disclosed to you in writing in our Credit Guide before any credit assistance is provided.
Third-party information. Where this page refers to regulatory settings, consumer guidance or lender policy, that information is sourced from the relevant authority and was correct to the best of our knowledge at the date shown on this page. Those rules change, sometimes without notice. Always confirm the current position with the issuing authority or with us before relying on it.
Found something wrong? If you believe anything on this page is inaccurate or out of date, tell us at joe@intellectfinance.com.au and we will review and correct it.
Intellect Finance Pty Ltd | Australian Credit Licence 390611 | MFAA Member | AFCA Member