How Bridging Loans Work: Moving Without the Stress
Christian Stevens, Mortgage Broker
Published November 28, 2025, 3:50 P.M
Learn how bridging loans work in Australia, the risks, benefits, and the best strategies to move without stress. FlintGroup.au helps buyers structure smart, low-risk bridging finance.
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🔑 Key Facts
- A bridging loan helps you buy a new property before you sell your existing one.
- It provides short-term finance to “bridge” the gap between buying and selling.
- Careful planning is essential to avoid financial pressure during the bridging period.
- Not all lenders offer bridging loans, and terms can vary widely.
- Flint helps borrowers structure bridging finance for smoother transitions.
What is a Bridging Loan?
A bridging loan is a short-term loan designed to cover the purchase of a new property while you are still finalising the sale of your current home.
It “bridges” the financial gap, giving you flexibility to move forward without having to synchronise two settlements perfectly.
How Bridging Loans Work
Typical process:
- Peak Debt Calculation: The lender calculates your total “peak debt” — the sum of your existing mortgage plus the new purchase price.
- Serviceability Check: They assess your ability to service this debt (interest-only repayments are often allowed).
- Debt Reduction: Once you sell your old home, the proceeds pay down the peak debt, leaving a residual home loan for the new property.
Bridging periods usually range from 6–12 months.
Key Advantages of Bridging Loans
Why consider bridging finance?
- Buy your ideal next home sooner without selling under pressure.
- Avoid temporary accommodation or multiple moves.
- Flexibility if you’re upgrading, downsizing, or relocating for work.
Risks and Considerations
While bridging loans can be helpful, they carry some risks if not planned carefully.
Things to watch for:
- Potential “double debt” pressure if your existing home doesn’t sell quickly
- Higher interest costs during the bridging period
- Stricter timelines for sale and repayment
Tips:
- Get a realistic market appraisal for your existing home
- Structure repayments carefully to manage cash flow
- Work with brokers who can negotiate flexible terms
Specialist Bridging Loan Lenders vs Standard Lenders
Feature | Specialist Bridging Lenders | Standard Banks |
Bridging Loan Expertise | High | Varies |
Max Bridging Term | 12 months | 6–12 months |
Flexibility on Repayments | More options | Limited |
Processing Speed | Faster | Slower |
Tip: Flint brokers have access to lenders who specialise in seamless bridging finance.
📞 Ready to Bridge the Gap Without Stress?
Bridging finance can make moving far easier — with the right strategy.
Flint’s mortgage brokers:
- Assess your full financial position
- Recommend smart bridging solutions
- Help time your move with minimal disruption
Chat with Australia’s leading mortgage brokers today.
Let’s make your next move smooth and stress-free — backed by FlintGroup.au.
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