What Is a Bridging Loan?
A bridging loan covers the new property while you wait to sell your existing home. Once the sale goes through, the bridging amount is paid out and your loan converts to a standard home loan.
Why Bridging Loans Matter Right Now
- Families want to settle before the school year
- Sellers want time to present their home properly
- Buyers don’t want to risk missing out on the right property
- Avoiding temporary rental accommodation saves money
Case Study: The Morans — Avoiding a Costly Double Move
The Moran family found their ideal home in early November. But realistically, selling and settling their existing home before Christmas wasn’t achievable.
- Rent for two to three months
- Pay for storage
- Move twice
- Re-enter the buying market in the new year
The interest on the bridging portion came to just: $2,200.
Outcome:
- They moved into their new home in December
- They sold their old home in February
- They avoided temporary rent, storage costs, and the stress of double moving
Closed vs Open Bridging
- Closed bridging: you’ve already sold your home.
- Open bridging: you haven’t sold yet, but plan to — very common during the pre-Christmas window.
When Bridging Loans Work Well
- You have strong existing equity
- You’ve found the right home and don’t want to risk losing it
- Your current home is likely to sell quickly
- You want to avoid moving twice
Case Study: Emma — When Bridging Didn’t Suit
Emma was selling a unit where apartments were taking 90+ days to sell.
Taking out a bridging loan would have meant potentially carrying two mortgages for months.
Final Thoughts
Bridging loans aren’t scary once you understand how they work. They’re simply a tool — and a very effective one when used correctly.
Dream Catchers Lending is an MFAA-accredited member and a Certified Divorce Specialist. Feel free to book an obligation-free virtual appointment or leave us your details and we'll be in touch.