Timing a move so your sale and purchase happen simultaneously sounds ideal, but it rarely works out that neatly. Bridging finance exists for exactly this gap, letting you buy your next home before your current one has sold.
How It Works
Bridging finance is a short-term loan secured against the equity in your current home, or against the proceeds of a sale that's already been agreed but not yet registered. It covers the deposit or purchase price on your new home in the interim, and is repaid once your existing property transfers.
When It Makes Sense
This route suits buyers who've found the right property and don't want to risk losing it while waiting for their own sale to finalise, or those moving between school terms or job start dates where timing matters more than saving on interest. It's less suited to buyers without a firm sale already in progress on their current home.
The Cost Side
Bridging finance carries higher interest rates than a standard bond, reflecting the short-term risk to the lender. It's not meant to be a long-term solution, and most bridging facilities are structured to be settled within a matter of months. Factor this cost into your decision rather than treating it as free flexibility.
The Risk to Weigh Up
The obvious risk is carrying two properties, and potentially two sets of repayments, if your current home takes longer to sell than expected. Getting a realistic read on your home's sale ability and timeline before committing to bridging finance is worth doing properly, rather than assuming the best case.
Talk It Through Before You Commit
Talk to your bond originator and your agent together before deciding. The right answer depends as much on your current property's marketability as on the finance itself.
Speak to a Bass Property Group agent or get a free valuation on your current home before deciding.
