Bridging Loan
What is it?
A bridging loan is a short-term, 12-month loan that helps you buy a second property while giving you time to sell your first one (even if you still have a mortgage on it). Found the perfect new home but need to sell your existing one for the funds? This loan helps bridge the gap between buying that new home and finalising the sale of your old one.
Benefits of our bridging loan
Never miss 'the one'
Snap up that dream property when you find it. Then take time to sell your current one later to help get the price you want. A bridging loan could help you to make timely offers at inspections and auctions!
Cover stamp duty & fees
You can even add upfront costs such as stamp duty and legal fees in your bridging loan if the value and equity in your current home is enough. It helps ease expenses.
Avoid the renting hassle
If you time it well, you could avoid the costs of having to rent a home in the period between the sale of your current property and settlement of your new home.
At a glance
| Loan type | Standard Variable for Interest Only | |
| Total loan term | Up to 12 months | |
| Loan size | Minimum $10,000 |
|
| Repayment frequency | Generally, a bridging loan is set up as an interest-only loan for a year. If it takes longer to sell your home, you'll end up paying interest. | |
| Repayment type | Interest Only Capitalised | |
| Extra repayments | Yes | |
| Redraw extra repayments | No | |
| Increase loan | No |
Rates and fees
Interest rate
| Variable rate | Comparison rate |
|---|---|
| 9.17% p.a | 8.98% p.a |
Available for Owner Occupier purposes only for a period of 12 months. After the first 3 months interest rate increases by 1.00%. Not available for investment property purchases, debt consolidation or residential lending originated under family or company trusts.
Fees
| Fee | Cost |
|---|---|
| Lending establishment fee | $600 |
| Monthly loan account fee | $8 |
| Document processing fee | $100 |
| Loan discharge fee | $350 per mortgage |
Other fees that might apply:
| Fee | Cost |
|---|---|
| Missed payment fee | $15 |
A bridging loan for life's big changes
"I found my dream home"
In a hot property market, timing is everything. A bridging loan could help you make a timely offer - and give you the time to sell your existing home.
"We need a bigger house"
Got baby news and need a larger home? Or want extra space for a blended family? A bridging loan could help you upsize sooner and sell your old home later.
"It's time to downsize"
Thinking of retiring or simplifying your life - but need time to sell your family home? A bridging loan could help you secure a more manageable house or flat sooner.
How to apply
Things to think about
Things you should know
Conditions, credit criteria, fees and charges apply. Credit provided by Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714. Residential lending is not available for Non-Australian Resident borrowers.
This information is general in nature and has been prepared without taking your objectives, needs and overall financial situation into account. For this reason, you should consider the appropriateness of the information to your own circumstances and, if necessary, seek appropriate professional advice.