A bridging loan covers the gap when you buy a new home before your current one has sold. Say you've found the place you want, but your own house won't settle for another three months. The lender funds the new purchase against the equity in the home you're selling, and when that sale settles, the proceeds bring the debt back down. In the meantime you're carrying both properties, so the most you owe at any point (the peak debt) is bigger than most people expect. Lenders assess your application with that number in mind. They'll also look at what's left after the sale and whether your income can handle it.

Usually more than a standard home loan, and that's the part people underestimate. Bridging finance often comes with a higher interest rate, plus establishment and valuation fees. Interest is generally charged on the whole peak debt, and some lenders let you capitalise it, meaning it's added to the loan instead of paid monthly. That's easier on cash flow, but you end up paying interest on interest. Before you commit, we put the real cost on paper: interest, fees, and what happens if the sale takes longer than planned. Then you can decide whether the convenience is worth the price.

Most lenders allow around six months, and some stretch to twelve. When the term ends, you'd normally need to repay it or move onto a standard loan. If your home hasn't sold by then, you've got a few options: lower the asking price, ask the lender for an extension (which isn't guaranteed), or refinance the combined debt if your income supports it. The worst time to work this out is when the clock is almost up. We plan the exit before you sign, including what you'd do if the market goes quiet. It also pays to get a sale estimate from more than one agent, rather than relying on the most flattering number.

Often, yes, though lenders look closely at the income side. They want to be sure you can comfortably carry whatever debt remains once the old place sells. Home loans for doctors and other professionals can help here, since some lenders view stable professional incomes more generously and may allow a higher end debt. Loans for self-employed borrowers are trickier. Expect to show recent tax returns and financials, and low doc options are less common for bridging because the amounts are larger and the timeframes tight. If your paperwork is up to date, there's usually a path forward. If it isn't, sort that out before you make an offer, not after.

There are, and they're worth looking at first. You could ask for a longer settlement on the new property, or make an offer that's subject to sale, though not every seller will agree to it. If you've got plenty of equity, mortgage refinancing with a top-up or a line of credit can fund the deposit without the formal bridging structure. Selling first and renting for a few weeks is the calmest option for some families, even if it means a bit of juggling. A bridging loan works well when timing is tight and equity is strong, but it isn't automatically the cheapest route. We'll walk you through each option, even if that means telling you bridging isn't needed.

Pick someone who handles more than straightforward purchases, because bridging deals involve two properties, two timelines and usually a stressed-out household. Ali Mehboob has 19 years' experience across banking, home loans and wealth management. He's a Pakistani mortgage broker in Campbelltown who works in Urdu and Punjabi as well as English, so the details don't get lost when family members are part of the decision. Many bridging deals happen in higher-priced areas, where buying and selling overlap. That's why we also work as a mortgage broker for Eastern Suburbs and Northern Beaches buyers, for professionals in the Sydney Hills district, and for clients in Melbourne. Our service costs you nothing, as the lender pays us after settlement.