Bridging loan lenders in Australia compared, including CBA

A CBA bridging loan works on a “peak debt” model: the bank lends you the balance of your current mortgage plus the cost of the new property, treats the combined figure as peak debt during the bridging period, then reduces it to your end debt when your existing property sells. That same structure, with different limits, rates, and timeframes, is how most major banks handle bridging. The differences between lenders sit in the detail, and the detail is where a deal is won or lost.

This guide explains how the big banks structure bridging finance, what the key terms mean, and where bank bridging stops fitting a deal. Windsor Finance is a finance broker, not a lender. We hold no capital of our own and approve nothing. We compare bridging across a panel of Australian bank and non-bank lenders so you see more than one bank’s single product.

A note before the detail. We do not publish any individual lender’s current rates, policies, or product names beyond what those lenders state publicly, and we are not acting for or endorsed by any bank named here. Every figure on this page is indicative. The lender confirms its own terms on application.

How a bank bridging loan is structured. The bank bridging model rests on two numbers: peak debt and end debt. Peak debt is the total you owe at the high point. It combines the outstanding balance on your current home loan, the purchase price of the new property, plus the lender’s fees and any capitalised interest. While both properties are held, you carry this combined amount. End debt is what remains once your existing property sells and the sale proceeds pay down peak debt. End debt becomes your ongoing, longer-term mortgage on the new property. During the bridging period most banks let you make interest-only payments, and several capitalise the interest on the bridging portion so you pay nothing on it until the old property sells. The bridging window is usually capped, commonly around six months for an existing property and up to around twelve months for a property still being built. Miss the window and the rate or terms can change. The mechanics are consistent across the majors. What varies is the maximum LVR they will lend against peak debt, whether they require a signed sale contract before settlement, how they treat the valuation of your existing property, and how quickly they can move.

What CBA-style bank bridging does well, and where it stops. Bank bridging suits a clean, ordinary situation. You own a standard metropolitan home with solid equity, you are buying another standard home, your income services the end debt comfortably, and you can wait the few weeks a bank assessment takes. In that case a major bank bridging loan is often the cheapest route, with indicative rates on bank and near-bank bridging running roughly 6% to 12% per annum. The model strains in four common situations. Speed: auction purchases settle on a fixed date, often 30 to 42 days, unconditional on the fall of the hammer, and a bank bridging assessment measured in weeks does not always fit a settlement measured in days. Bank-style bridging typically takes 1 to 3 weeks to settle once approved, and approval itself takes time. Servicing the peak debt: some banks assess your ability to service the full peak debt at a buffered rate, not just the end debt, and self-employed income, recent income changes, or an investment-heavy position can fail that test even when the deal is sound. Non-standard security or purpose: regional, rural-zoned, specialised, or mixed-use property narrows what a bank will accept, as does a business or development purpose, because bank bridging is built for residential moves, not for funding a build, a subdivision, or a commercial purchase. No clean exit yet: if your existing property is not yet listed or under contract, a bank may decline until the exit is firmer, while a non-bank or private bridging lender often takes a clearer view of the same exit.

Bank versus non-bank and private bridging. Bridging is not a single product. It sits on a spectrum from cheapest-and-slowest to fastest-and-dearest, and the right point on that spectrum depends on your deal. Bank and near-bank bridging is the cheapest money, indicatively 6% to 12% per annum, and suits standard residential moves with time to spare. Non-bank lenders price a little higher but take a broader view of security, income, and purpose. Private and caveat-style bridging is the most expensive, commonly 9% to 16% per annum or priced monthly, and the fastest, settling in 3 to 10 business days where the security and exit are clean. The point is not that one is better. The point is that comparing only your own bank means seeing one option on a wide spectrum. If your deal fits the bank box, you save money. If it does not, you need to know which non-bank or private lender takes it before the deadline closes. Across the panel, bridging facilities run from roughly $100,000 to $25m, up to around 75% LVR on standard security, on terms of 6 to 12 months with some private facilities extending to 24 months. Indicative terms come back inside 24 to 48 hours.

What to compare when you weigh up bridging lenders. When you put two bridging options side by side, the headline rate is only one line. Compare the whole picture. Total cost over your actual term: bridging is short-term money, so a facility held three months costs roughly a quarter of its annual rate (a 12% per annum loan held for three months costs about 3% of the balance over that period, before fees), so compare the cost over the months you will really hold it, not the annual rate read in isolation. Establishment and exit fees: a lower rate with a heavy establishment fee can cost more on a short hold than a slightly higher rate with no upfront fee. Whether interest is capitalised: capitalised or prepaid interest means no monthly payment during the bridge, which matters if you are carrying two properties. The bridging window: how long you have before the terms change if your existing property has not sold. Speed to settlement: useless to win on rate and miss the settlement date. Servicing test: whether the lender assesses peak debt or only end debt. A broker lines these up across the panel in one comparison rather than leaving you to ring each bank in turn.

How Windsor compares bridging lenders for you. We work the deal, not a single lender’s rulebook. One enquiry reaches banks, near-banks, non-bank lenders, and private credit funds, so you see the cheapest structure that actually fits your timeline rather than the only one your bank happens to sell. We hold no balance sheet, so there is no product to push. The recommendation follows your deal. We package the file so the lender’s credit team sees a clean, complete case the first time, which protects both your rate and your settlement date. And we shortlist the right lender first time, so a tight deal is not lost to the costly loop of decline, re-shop, and a dinged credit record. Most bridging finance we arrange is for business or investment purposes, which sits outside the National Consumer Credit Protection Act 2009. Bridging against the home you live in can be consumer credit, regulated by the NCCP Act and overseen by ASIC, with responsible lending obligations attached. We confirm the purpose at enquiry and handle each correctly. Windsor Finance is a finance broker. The purpose of each deal is confirmed in writing before it proceeds. We do not provide tax, credit, or financial advice, and we are not affiliated with any bank named on this page. Every rate, fee, and LVR here is indicative; the lender confirms on application. For the full picture on the product, see bridging loans in Australia.