Bridging Loans in Brisbane: What Sellers Need to Know Before Buying Next

What is a bridging loan?

A bridging loan is a short-term loan designed to "bridge" the financial gap between buying a new property and selling your existing one. If you find your next home before your current one sells, a bridging loan allows you to proceed with the purchase without waiting for your sale to settle.

Most bridging loans in Australia are structured to run for six to twelve months, with the expectation that the borrower's existing property will sell within that period. Once the sale settles, the proceeds are used to pay down the bridging loan, leaving you with the standard mortgage on your new property.