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Consumer Bridging Loans
Buy Your Next Home Before You Sell with a Consumer Bridging Loan
Timing the sale of one home and the purchase of another can be tricky especially in today’s fast-moving property market.
A consumer bridging loan from Innovate Funding lets you secure your next home before your current one sells, removing stress and giving you breathing space to sell properly, not under pressure.
Whether you’re upsizing, downsizing or relocating, our bridging loans offer the flexibility, speed and confidence you need to manage multiple property transactions smoothly.
What Is a Consumer Bridging Loan?
A consumer bridging loan is short-term finance that helps you “bridge the gap” between buying a new property and selling your existing one. It provides access to funds secured by your current property, so you can settle the purchase of your next home while waiting for sale proceeds to come through.
The facility is typically interest-only and can run for a few months up to a year giving you time to finalise your sale or refinance into a standard home loan.
Feature | Description |
|---|---|
Purpose | Purchase a new home before your existing one sells. Alternatively looking to renovate prior to selling. |
Loan Term | 3–12 months (short-term) |
Security | Current property, new property, or both |
Repayment Type | Interest-only or capitalised interest |
Exit Strategy | Sale of current home or refinance to long-term loan |
Why Borrowers Use Bridging Loans
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Avoid rushed sales: Sell your home on your terms and timeline.
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Secure dream properties fast: Buy before it’s gone.
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Smooth settlements: No need for temporary rentals or double moves.
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Flexible repayment options: Choose interest-only or capitalised interest.
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Confidence and control: Manage timing stress-free with predictable costs.
How the Process Works
Step 1. Apply for a Bridging Loan
Provide your details, target purchase price, and estimated sale price of your existing home.
Step 2. Receive Indicative Terms
We’ll assess your equity position and issue an indicative offer within 24 hours.
Step 3. Property Valuation
A fast valuation confirms your property’s market value and LVR (Loan-to-Value Ratio).
Step 4. Formal Approval & Settlement
Once approved, your bridging loan settles, letting you complete your purchase.
Step 5. Sell Your Property & Exit
When your current property sells, the sale proceeds pay down or clear the bridging loan.
Key Considerations Before Taking a Bridging Loan
Bridging loans can be powerful tools, but it’s important to plan carefully.
1. Valuation Basis: Lenders assess the current value of your property, not your estimated sale price.
2. Interest Costs: Even interest-only loans accumulate over time, so always build in a cost buffer.
3. Market Timing: If your home takes longer to sell, you may need to extend the loan term discuss this early.
4. Exit Strategy: Have a clear exit plan, whether it’s sale proceeds or refinance.
5. Tax & Legal Advice: Bridging loans can have implications for capital gains and deductibility. Seek professional advice.
Example Scenario
Case Study – The Lewis Family (Sydney, NSW)
The Lewis family found their dream home listed at $1.35 million, but their current home hadn’t sold yet.
Innovate Funding provided a consumer bridging facility secured against both properties, covering the shortfall and purchase costs. They settled their new home within a week, listed their existing one the following weekend, and sold it a month later for $950,000 repaying the loan comfortably and avoiding costly interim accommodation.
How Much Can You Borrow?
The amount you can borrow depends on your available equity and the combined value of your current and new properties. Innovate Funding can usually lend up to 75% of the combined property value, subject to valuation and credit assessment (3-12 months).
How Interest Is Charged
Interest can be structured in two ways:
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Interest-Only Payments – you make monthly repayments during the bridging period.
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Capitalised Interest – interest accrues and is repaid when your property sells.
The right option depends on your income flow and timeline.
Common Use Cases
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Upgrading to a larger home without selling first
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Downsizing after retirement while waiting for sale proceeds
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Relocating interstate for work or family
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Avoiding contingent offers that risk losing a dream home
Why Choose Innovate Funding
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Fast approvals and settlements – typically within 2–5 business days
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Transparent cost structure – no hidden fees
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Flexible repayment options – interest-only or capitalised
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Personalised guidance from experienced lending specialists
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Australia-wide coverage with local expertise
Documents You’ll Need
To get started, we’ll usually ask for:
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Photo ID (drivers licence or passport)
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Rates notice for your existing property
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Contract of sale (for purchase and/or sale property)
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Proof of income (for NCCP compliance)
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Evidence of insurance
Frequently Asked Questions
1. How is a consumer bridging loan different from a business bridging loan?
Consumer bridging loans are regulated under the NCCP and are designed for owner-occupied or personal-use purposes, while business bridging loans are for commercial or investment transactions and are NCCP-exempt.
2. Can I use a bridging loan for renovations?
Yes, provided the primary purpose is to facilitate sale or settlement of your home.
3. What happens if my property takes longer to sell?
Innovate Funding can often extend your loan term. Communication is key if timelines change.
4. Are bridging loans interest-only?
Yes, most are interest-only. You can also capitalise interest to avoid monthly payments.
5. Can I get a bridging loan if I already have a mortgage?
Yes. We assess your total equity position across both properties to structure a suitable facility.
Contact Innovate Funding
Need a bridging loan that fits your timeline?
Our lending specialists can structure flexible, compliant facilities designed around your sale and purchase schedule.
Address: 45 Denison Street, Bondi Junction NSW 2022
Phone: 02 8919 3639
Email: deals@innovatefunding.com.au