LCA - FAQ - Do I pay interest?

Depending on the bridging period you choose, interest may be charged. The interest charged during a bridging period is structured as follows: Months 1 to 3: No interest charged and no repayment required. Months 4 to 6: Interest charged monthly, interest will be capitalised (added) to principal loan amount, no repayment required. Months 7 to 12: (if 12 month bridging period selected) Monthly interest only repayments required.

Bridging Loan

Q: LCA - FAQ - What is the bridging period?

The bridging period refers to a maximum 6 or 12 month term , selected by you, between when you settle your new home (now) and when you sell your old one (later).

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Top reasons to choose this loan

3 months
interest free

Pay absolutely no interest during the first 3 months

6 months
no repayment

Make no repayments during the first 6 months

Flexible bridging
period

Choose between 6 or 12 month bridging loan period

Buy now,
sell later

Buy your new home now, sell your old one later

Sell at the
right time

Sell your current property at any time within the bridging period

Don’t rent between
homes

Live in your old property until your new home settles

Why Aussies Choose Us

Apply anytime, and from anywhere.

Fast tracked pre-approval in minutes.

Smarter lending to get you moving sooner.

Online convenience, local support.

Owner Occupier Rates

Repayment Type

Interest Only

Maximum LVR of 80%

Product	Interest rate from	Comparison rate
Bridging Loan	7.75% p.a.*^	6.08% p.a.*

Key Features

20% deposit minimum	Yes
6 or 12 months Bridging period	Yes
Fixed rate during the bridging period	Yes
No repayment required for the first 6 months	Yes
No monthly, ongoing, or settlement fees	Yes
Offset account available after bridging period	Yes
Free redraw on any additional repayments after bridging period	Yes

Fees

Application fee	$0
Ongoing fees	$0
Security assessment fee	$230^##
Government fees	At cost
Settlement fee	$0
Bridging Loan setup fee	2% of loan amount

Frequently asked questions

What is a Bridging Loan?

A Bridging Loan gives you the funds to buy a new home now while you work to sell your old one within a ‘bridging’ period of either 6 or 12 months, starting from when you settle your new property.

How does a Bridging Loan work?

The loan on your current home is refinanced and bundled with the loan amount of your new home to make the Bridging Loan. The bridging period of the loan exists until you sell your old home, at which point the sale funds are applied to reduce your loan, which then converts to a standard variable home loan against just your new property.

Can Bridging Loan be pre-approved?

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

How much deposit do I need?

You will need at least 20% deposit to be eligible.

How long do I have to sell my old home?

You can take 6 or 12 months to sell your home, depending on the bridging period you choose.

Who is eligible for a 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.

What amount can I borrow?

You can borrow between $50,000 and $3,000,000.

What is the bridging period?

The bridging period refers to a maximum 6 or 12 month term, selected by you, between when you settle your new home (now) and when you sell your old one (later).

Do I pay interest during the bridging period?

Depending on the bridging period you choose, interest may be charged. The interest charged during a bridging period is structured as follows:

Months 1 to 3: No interest charged and no repayment required.
Months 4 to 6: Interest charged monthly, interest will be capitalised (added) to principal loan amount, no repayment required.
Months 7 to 12: (if 12 month bridging period selected) Monthly interest only repayments required.

Our home loan application process

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Simply fill out your application online by entering some of your details, or chat to one of our friendly lending specialists over the phone and they can complete your application for you.

Goodbye paperwork

After your application is complete, use our system we call onTrack on your desktop or device to add your documentation such as payslips and bank statements, and track the progress of your application.

Settle

Your loan will settle, and you’ll enjoy your new loan rate.

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Mary-Anne

Meet Mary-Anne, an amazing customer who needed a loan to buy her new home before the sale of her old one.

My husband and I decided to relocate. We wanted to be near our children, particularly our grandchildren, who lived interstate.
To make it work, we were selling two properties, our family home and an investment property, while also buying a new family home. The experience was challenging. It was a matter of being asset rich but cash poor, so we needed a simple loan, quickly, to help with the upfront costs of buying the new place while settling the sale of two others.

Read story View all

Bridging Loan

Find Out More

Get started

Top reasons to choose this loan

3 months interest free

6 months no repayment

Flexible bridging period

Buy now, sell later

Sell at the right time

Don’t rent between homes

Why Aussies Choose Us

Apply anytime, and from anywhere.

Fast tracked pre-approval in minutes.

Smarter lending to get you moving sooner.

Online convenience, local support.

Need to know more? Here's the whole offer

Owner Occupier Rates

Repayment Type

Key Features

Fees

Work out your loan repayments

Your loan details

Bridging Loan

Frequently asked questions

What is a Bridging Loan?

How does a Bridging Loan work?

Can Bridging Loan be pre-approved?

How much deposit do I need?

How long do I have to sell my old home?

Who is eligible for a Bridging Loan?

What amount can I borrow?

What is the bridging period?

Do I pay interest during the bridging period?

Our home loan application process

onTrack

Customer reviews

Our Google Rating

Refer your friends or family to loans.com.au and earn big rewards!

Real-life customer stories

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Welcome to loans.com.au _

3 months
interest free

6 months
no repayment

Flexible bridging
period

Buy now,
sell later

Sell at the
right time

Don’t rent between
homes