Bridging loans, placed across a panel of lenders
Short-term, property-secured finance to settle the next property before the current one sells, with indicative terms in 24 to 48 hours.
A bridging loan is short-term finance secured against property. You use one to buy a new property before you sell your home, settle on time, release equity ahead of a sale, or bridge a gap until a longer-term exit lands. Lenders price it on the security and your exit, not just your credit file, which is why it can settle in days when a standard home loan takes weeks.
Windsor Finance is a broker, not a lender. We hold no own capital and approve nothing. We take your deal to a panel of Australian bank and non-bank bridging lenders and place it with the one that fits your timeline, your LVR and your exit. The right lender is rarely the first one you would call, and every fee is disclosed in writing before you commit. This is the main hub for bridging in Australia: compare the best and cheapest options, check current rates, and see how a broker works on the pages linked lower down.
Key facts
- Indicative cost ~6-12% p.a. on bank and near-bank bridging; private and caveat bridging ~9-16% p.a.
- LVR up to around 75% of value on standard security
- Indicative terms in 24 to 48 hours; private and caveat bridging settles in 3 to 10 business days
| Scenario | Indicative rate | LVR |
|---|---|---|
| Bank / near-bank bridging | ~6–12% p.a.* | ~75% |
| Private / caveat bridging | ~9–16% p.a.* | ~65–75% |
| Auction / fast settlement | ~7–13% p.a.* | ~75% |
Cost calculator
How a bridging loan works
A bridging loan lets you buy a new home before you sell your current one, instead of selling first and renting in between. Most lenders structure it around peak debt: your existing mortgage plus the new purchase price, less your deposit. During the bridge you usually pay interest only on that peak debt, or the interest is capitalised until your current property sells. Lenders cap peak debt against an LVR, so your equity sets how much you can borrow. Once your old property settles, the sale proceeds clear the peak debt and you keep an ordinary mortgage on the new home. It runs 6 to 12 months on standard bridging, up to 24 on some private facilities, and is repaid by your exit, which lenders want to see is credible before they fund.
Type of bridging loan: open vs closed
There are two broad types, split by how certain your exit is. A closed bridge is for borrowers who have already exchanged on the sale of their current property, so the repayment date is fixed, which makes it cheaper. An open bridge is for borrowers who have not yet sold; lenders price it higher and look harder at the realistic sale value and likely time to sell. The market also splits by lender: bank and near-bank bridging is cheapest when you have time and standard security; private and caveat bridging is the fastest and dearest, for deals measured in days; specialist and non-conforming bridging sits between, for files the banks decline. The cleaner your exit and lower your LVR, the cheaper the money.
Bridging loan interest rates and what a bridge costs
Bridging rates sit above a standard mortgage, because it is short-term money carrying short-term risk. Indicatively, bank and near-bank bridging runs around 6% to 12% per annum; private and caveat bridging runs higher, often 9% to 16% per annum or priced monthly, plus establishment fees. The headline rate matters less than it looks, because you hold it briefly: three months costs roughly a quarter of the annual rate, set against losing the deal, the deposit, or a fire-sale price. Expect an establishment fee, a valuation fee, and the lender legal costs on top; confirm any discharge or exit fee in writing.
Requirements to qualify for a bridging loan
The requirements are simpler than a full mortgage, because the lender underwrites the security and the exit more than your serviceability. You need property to secure it against, enough equity to bring the LVR within range (typically up to around 75% on standard security), and a credible exit: a signed sale, a confirmed refinance, or another asset maturing. We package the file to avoid the costly loop of decline and re-shop. Bridging suits more borrowers than people expect: self-employed income, a prior default, or non-standard security need not rule you out, because most short-term lenders price on the security and the exit, not the credit score.
Bridging loan vs a standard home loan
A bridging loan and an ordinary mortgage solve different problems. One is short-term money to close a timing gap; the other is the long-term facility you repay over decades. Most borrowers use both.
Bridging loan
- Short-term, typically 6 to 12 months
- Lets you buy a new home before you sell your current one
- Interest-only or capitalised while the bridge runs
- Higher rate, paid only for the months you hold it
- Priced on the security and a clear exit, not just serviceability
Standard home loan
- Long-term, typically 25 to 30 years
- Assumes you have already sold, or are not buying and selling at once
- Principal and interest repayments over the full term
- Lower rate, paid for decades
- Underwritten heavily on long-term income and serviceability
Where bridging loans in Australia fit
Settle the next purchase while your current property is still on the market.
Unconditional contract on a short settlement, with no time for a slow bank.
Probate, deceased estates, divorce settlements, or a tax debt on property.
The pros and cons of bridging
Is bridging too expensive? +
What if I cannot sell my current property in time? +
The bank already said no to a bridge. Is that the end? +
Do I have to make repayments while the bridge runs? +
Common questions
How fast can bridging settle? +
Do I need an exit strategy? +
How much would a $100,000 bridge cost? +
Can I use bridging to buy an investment property? +
Explore the bridging loans hub
Best bridging loan for your deal
How rate, LVR, speed and exit decide the right lender for you.
Read more →Cheapest bridging loan
How a clean exit and a low LVR buy the cheapest money on the panel.
Read more →Bridging rates
Indicative bridging pricing across bank, near-bank and private lenders.
Read more →Bridging finance broker
What a broker does on a bridge, and why one enquiry beats your own bank.
Read more →Read the guides
Plain-English guides that sit under this hub. The wider finance guides hub links to every guide we publish.
Get indicative bridging terms in 24 to 48 hours
Tell us the property, the loan size and your exit. A broker comes back with indicative structures inside 24 to 48 hours. Structuring and shortlisting cost nothing until you give the go-ahead.