Bridging finance
Found the home you want to upsize into before your current place has sold? Bridging finance can be a strategic way to connect the purchase and sale. Blake maps the funding, sale plan and ongoing loan early — alongside simultaneous settlement and longer-settlement options.
Peak debt and end debt: know both numbers
Peak debt is the total borrowing during the overlap, including your existing loan and the funding for the new purchase. End debt is what remains after the net sale proceeds are applied. For illustration, a $400,000 existing loan plus $900,000 of new funding gives $1,300,000 before extra costs or capitalised interest. Applying $750,000 of net sale proceeds leaves $550,000 under those assumptions.
Plan the sale before you buy
Blake works through a realistic sale-price range, expected listing and settlement dates, the lender’s maximum bridging period and a contingency for a slower sale. We also test a lower sale price so you can see the effect on your end debt. This planning gives you a clearer position before making an offer on your next home.
Capitalised interest can ease monthly cash flow
Some bridging facilities allow interest to be capitalised — added to the loan balance — while your old home sells. This can relieve monthly cash-flow pressure during the overlap, depending on the facility. It is not free interest: the balance and total cost grow, and the ongoing end debt still needs to be affordable. Blake explains the lender’s repayment requirements upfront.
Map bridging and simultaneous settlement early
Blake compares a bridging structure with simultaneous settlement, a longer settlement on the purchase or selling first. The best route depends on your equity, income, properties and contracts. Your conveyancer or solicitor helps negotiate and confirm settlement obligations, while Blake coordinates the lending strategy. We plan both the preferred route and a workable alternative before you commit.
Bring your next move into focus
Start with estimated property values, your current loan balance and the price range for the next home. Blake will map the peak debt, likely end debt, cash-flow requirements and application steps. Sale proceeds and timings are estimates, and all lending is subject to lender eligibility, assessment and approval.
Let’s work out what fits.
Answer four quick questions and Blake will review the lending options for your plans. You’ll deal directly with him from the first strategy conversation to settlement.