Buying a home
Bridging Loans
Bridging finance lets you buy your next home before your current one sells. It solves a timing problem, but it comes with a deadline and a cost. We set out the bridging period, the interest and your exit plan clearly before you commit.
Homestead is a mortgage broker, not a lender. Our service costs you nothing.
How it works
- 1
We value both properties and work out your peak debt and the ongoing end debt.
- 2
We compare bridging options, including how interest is charged during the bridge.
- 3
The lender funds the purchase. You sell your existing home within the agreed period.
- 4
Sale proceeds reduce the loan to the end debt, which becomes your normal home loan.
Who it suits
- Owners who have found their next home first
- Buyers who do not want to rent between homes
- Owners confident of selling within six to twelve months
- Upgraders with solid equity in their current home
What lenders look at
A guide only. Each lender sets its own criteria, and they change.
- Strong equity in your existing property
- Income that services the end debt
- A realistic sale price and timeframe
- A clear exit strategy
Frequently asked questions
Commonly six months for an established home and up to twelve months when building, depending on the lender. If you have not sold in time, the lender may require action, so we plan a realistic timeframe.
It varies. Some lenders capitalise interest on the bridging portion so it is added to the loan. That eases cash flow but increases the amount owed.