Enjoy your new home sooner with our Bridging Loan

A Bridging Loan is a type of loan that helps you finance a new home purchase now, while you work to sell your old one within a ‘bridging’ period of up to 12 months, starting from when you settle your new property. 

A bridging loan allows you to purchase a new owner-occupied property before selling your existing property. Your existing property, whether it has a home loan that is refinanced into the Bridging Loan or is provided as additional security if it is mortgage-free, is used together with your newly purchased property to support the loan.  

During the bridging period of up to 12 months, monthly interest charges are capitalised to the loan balance. Once your existing property is sold, the sale proceeds are used to reduce your loan balance, and the remaining loan converts to a standard variable home loan secured by your new property 

Yes. You can apply for a pre-approval on your Bridging Loan.

Our Bridging Loan is available to customers who are selling their existing owner occupied or investment property, to purchase a new owner occupied property. The new purchase must be owner occupied.

Yes. Interest will be calculated and charged on your loan throughout the bridging period of up to 12 months. During this time, the monthly interest charges are capitalised to your loan balance, which means interest added to your loan limit owing rather than being paid separately via a monthly repayment. As a result, you won't need to make repayments during the bridging period, and the amount of interest charged will be included in your outstanding loan balance. 

Peak debt is the total you owe at the highest point: your existing home loan balance (if any), plus the purchase price of your new property, plus any costs you’ve added to the loan such as stamp duty and legal fees.  

End debt is what remains after your current home sells, and the proceeds are applied. This becomes your ongoing home loan. If you’re downsizing, your sale proceeds may cover the balance in full, in which case there is no end debt at all. 

If you sell your existing property before the end of the bridging period, the sale proceeds will be used to reduce your loan balance (the peak debt). Once the sale has settled and your peak debt is reduced with the proceeds, your Bridging Loan will convert to a standard variable home loan secured by your new property only. You'll then begin making repayments on the remaining loan balance in accordance with your loan contract. There are no fees for completing your bridging period prior to the maximum 12 months allowed.  

When your current home sells, the proceeds are applied to your balance. What’s left is your end debt, which becomes a standard variable home loan with us.  

From that point you’ll have access to your home loan through our Smart Money app where you'll make normal principal and interest repayments on the remaining balance.  

If your sale proceeds cover the balance in full, the loan is closed out and there’s nothing further owing.