How does bridging finance work?

The lender funds both your current and next property for 6-12 months. Once your current property sells, the proceeds pay down the bridge and the loan rolls back to a single mortgage on your new home.

How long can I be on a bridging loan?

Most lenders allow 6-12 months. Some go to 18 months. The shorter the bridge, the cheaper — long bridges accumulate significant interest on the combined debt.

Do I need to make repayments during the bridge?

Some bridging products capitalise interest (added to the balance), some require full repayment of both loans. Capitalised is more cash-flow-friendly but adds to total debt.

What if my old home doesn't sell in 6 months?

Most lenders allow extension by 3-6 months at additional cost. Worst case the lender forces a sale at market price. Setting a realistic price upfront avoids this scenario.

Will I pay LMI on a bridging loan?

Only if your peak debt (during the bridge) exceeds 80% of the combined property value. We model this upfront and structure to avoid LMI where possible.

Bridging Home Refinancing

Who this guide is for

Sydney homeowners upgrading to a larger property
Downsizers selling family home and buying smaller
Renovators temporarily moving while their property is being upgraded
Buyers who've found their next home before listing the current one

The real challenge

Selling your current home before buying the next one means you might miss the property you want — or have to settle for a rental in between. Buying first means you're carrying two mortgages until the old home sells, which most lenders won't fund without bridging structure.

The cost and structure of bridging varies dramatically. Some lenders capitalise interest into the loan; some require full repayment from settlement; some have strict 6-month limits and others go to 12+ months. Choosing the wrong structure can become very expensive.

How Mortgagefy helps

Mortgagefy works with lenders that actively support bridging finance. We model the full picture: total debt during the bridge, capitalised vs paid interest, expected sale price of your old home, and the rollback to a single mortgage at the end.

We help you set realistic expectations on sale price and timing — most bridging trouble comes from over-estimating the old home's price. We work with your real estate agent on this.

How it works — 4 simple steps

Position review

Current home value, debt, equity, target purchase price and your sale timeline.

Bridge structure

We compare lenders that capitalise interest vs require payment, and the maximum bridge period.

Settlement on new home

Both properties on the loan — new home settles, you move in, old home goes to market.

Sale + rollback

When your old home sells, proceeds pay down the bridge and the loan rolls back to a single mortgage.

Frequently asked questions

We use offer letters and vesting schedules to value RSUs conservatively. We present current vesting value + projected future vesting as a 3-5 year income average. This gives lenders confidence in your income stability while accounting for market volatility.

Both. We work with W2 employees, 1099 contractors, and consultants. For contractors, we use 2 years of tax returns plus business financials. We have lenders who specialise in contractor income—they understand the variability.

Unvested options have zero value for refinancing. We count only vested equity. If you have a 4-year vest, we use 25% of the grant value (what's vested) plus a conservative projection of future vesting.

If you've been in your new role 6+ months, most lenders will refinance. We'll use your offer letter plus 6 months of pay stubs. If less than 6 months, it's harder but possible with specialist lenders.

Yes, if you have 2+ years of bonus history. We average the past 2 years and present it conservatively. Some bonuses get counted at 50% to be conservative with variable compensation.

ESPP is counted as deferred compensation. If your company matches or you have a discount, we value it as part of total compensation package.

Get a free bridging home loan assessment

We model the full bridge — costs, timeline, sale expectation — before you commit to buying the next home.

Start Your Free Assessment Call 0432 634 648

Get your personalised answer in 2 minutes

Free, no obligation. We'll match you with the right lender for your situation.

Specialist Lending Solutions

Model your scenarios: Use our free home loan calculators to estimate borrowing capacity, repayments, and savings.

Bridging Home Loans — Buy Your Next Home Before You Sell