Keystone Home Loans

Bridging Loans

Successfully finance your relocation from one home into the next.

No Obligations

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5.0 Stars Based on 48 user reviews

How to get started

Have a quick chat with Phillip before you sign anything. On a free, no-obligation call we'll map your peak debt, your likely end debt, buffer money to manage repayments while on both loans and the settlement timing. You'll know whether bridging is the right move, or whether refinancing instead makes more sense.

Couple on a call planning a bridging loan before selling their home
Light-filled hallway of a new home

We help you relocate with a bridging loan

A bridging loan, sometimes called a relocation loan, lets you borrow to buy your next home before you've sold your current one. You get 6 to 12 months to sell the existing property. Once it settles, the sale proceeds pay down the debt.

You hold two properties and carry one combined loan during the bridging period. Lenders call the total you owe across both the peak debt. What's left after your current home sells is the end debt, and that becomes your ongoing home loan.

Most buyers use a bridging loan for the same reason. They've found the home they want, they don't want to lose it, and they want to make the most attractive offer to the seller. Move in, then list and sell without rushing into a rental in between or accepting a low offer under pressure.

The maths matters. Lenders look at the loan-to-value ratio (LVR), your total borrowing as a percentage of the combined value of both properties. Most lenders cap the combined LVR at around 80%, so equity in your current home does a lot of the heavy lifting.

Four Things People Get Wrong About Bridging

You don't always need to sell first.
That's the whole point. Bridging lets you buy first and sell your current home after, without a rental in between.

You don't always have to make repayments during the bridge.
Some lenders capitalise interest and clear it at settlement. Others require repayments, so we build a buffer. Rates sit just above standard variable.

Combined LVR is usually capped around 80%.
Equity in your current home is what makes the deal work. The more you own, the more lender options you have.

Not every lender does bridging.
Lender choice matters more than rate shopping. We compare 50+ lenders for Sydney and NSW buyers to find one whose policy fits your situation.

Peak debt, end debt and what it actually costs

Here's the part most pages skip. The numbers.
Peak debt = existing loan balance + new purchase price + buying costs + buffer - deposit contribution

Peak debt is the maximum total you owe during the bridging period

End debt = bridging debt - net sale proceeds of your current home

End debt is the loan you're left with after your current home sells

A worked example, using indicative numbers (simplified for demonstration purposes):

ItemAmount
Current home loan balance$300,000
New home purchase price$1,100,000
Stamp duty, conveyancer, fees$45,000
Peak debt$1,445,000
Expected net sale of current home$850,000
End debt$595,000
The end debt is the loan you keep after the old property has been sold. It's serviced like any standard home loan paying principal and interest over 30 years after the current property settles.

No repayments during the bridge period

When capitalised interest applies, interest is added to the bridging loan rather than billed monthly. You keep making repayments on the end loan for the new home, but nothing is owed on the bridging portion while you're holding both properties.

Interest accrues on the peak debt

Because interest is capitalised rather than paid, it adds to the peak debt over time. That keeps cash flow manageable while you're listing and selling the current home, but it does mean the total debt grows until settlement.

Sale price affects your end debt

If the current home sells for less than expected, the end debt goes up. That's why a sensible bridging strategy uses a realistic sale price, not a hopeful one. We model conservative numbers so you're not caught short. It's worth running our borrowing power calculator first to sense-check the end debt against your serviceability.

Our Process

How a bridging loan gets done

Seven steps, in order, with no surprises. Phillip manages each one with you.

Strategy call

We start with a free, no-obligation call to understand what you're trying to do. Where you're buying, what you're selling, what the timing looks like. Then we'll talk through whether bridging is genui...

Borrowing power and lender shortlist

We work out your peak debt ceiling, what end debt you can comfortably service, and which lenders' bridging policies suit your situation. Many lenders don’t do bridging, and the ones that do have diffe...

Sign the contract on the new home

Once you've found the place, you'll sign the contract of sale and pay a deposit. The terms you negotiate matter. We'll guide you on settlement timing and any finance conditions to include, so the brid...

Submit documents

Send us your payslips, bank statements, current loan details and the new contract of sale. We package everything cleanly so the lender has what they need on day one. Clean files get faster decisions.

Lender assessment and approval

The lender assesses the file, orders valuations on both properties, and issues a decision. This typically takes two to seven business days. We follow up regularly and keep you updated, so you're never...

Settlement on the new home

Your new loan settles, you pick up the keys, and the bridging period officially begins. From this point you're paying interest on both loans (whether you’ve capitalised or not) if its capitalised it's...

Sell, settle, end debt established

Once your current home sells and settles, the proceeds pay out most of the bridging debt which reduces peak debt. What's left becomes your end debt (new home loan). You can deposit any surplus funds i...

What a bridging loan actually costs

Costs to expect, without quoting numbers that go stale:

Interest rate
Sits slightly above standard variable home loan rates. Varies by lender and loan structure.
Capitalised interest
Adds to peak debt during the bridge period. The longer it takes to sell, the more it compounds.
Application, establishment and valuation fees
Lender-specific. Typically a few thousand to establish. Valuations are often required on both properties.
Stamp duty and conveyancer costs
Applies to the new purchase. Paid at settlement and factored into your peak debt from the start.
Discharge cost
Charged on your current home loan when it settles. Amount varies by lender.

Our service costs you nothing in most cases. We're paid by the lender when your loan settles, similar to how bank staff are paid. If your situation is unusually complex, we'd talk that through up front.

Bridging Loan Eligibility

The main things lenders look at

Equity in Your Current Home

More equity means more options and easier numbers for lenders to work with.

Lower existing debt opens up more lender choice

Combined LVR

Most lenders cap the combined loan-to-value ratio across both properties at 70% to 80%.

Some go higher with mortgage insurance

Serviceability

Some lenders test against end debt only; others assess peak debt, which is significantly stricter.

This single policy difference can determine whether you qualify

Property Types

Houses, townhouses and larger units give you the widest lender choice.

Some lenders allow selling two properties to bridge into one

Closed vs Open Bridging

Some lenders require an unconditional sale contract before they'll bridge. Because timing rarely works that cleanly, open bridging is usually the better fit.

Phillip will check which lenders offer open bridging

Investor Eligibility

If you're an investment property owner moving between properties or restructuring your portfolio, eligibility requirements may differ. Phillip can help tailor the loan structure to suit your investment strategy and financial goals.

Phillip tailors the structure to your investment strategy

If you're an investor moving between properties or restructuring your portfolio, eligibility shifts again. Phillip can tailor the bridging structure accordingly.

When bridging beats the alternatives, and when it doesn't

Bridging isn't always the right answer. Here's how it stacks up.

OptionBest ForMain Risks
Bridging loanFound the next home, don't want to miss itCurrent home sells for less than expected or takes a lot longer than expected
Sell first, then rentSoft property markets, no rush to buyTwo moves, rental costs, market rises whilst you wait or can't find a home to buy
Refinance and use equityKeeping both properties long term and renting one outBigger ongoing debt, full serviceability test
Selling at same time as buyingIf nervous about bridging debt and in quieter markets where sellers are more negotiable so you can have your offer to buy conditional on selling yours firstSeller will take a simpler offer

If you're an investor moving between properties or restructuring, the eligibility picture changes again. Phillip helps investors moving between properties too, and the bridging structure can be tuned for that.

Testimonials

See what clients say about our service

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5.0 Stars

Based on 48 user reviews

Darren W.

Darren W.

“Refinanced through our mortgage broker and couldn’t be happier. Phillip secured us a great interest rate, helped consolidate our loans, and ended up saving us a heap of money each month. Everything was explained clearly and the process was smooth from start to finish. Highly recommend.”

Michael D.

Michael D.

“Phillip was amazing. Not only did he help us find the loan we desired, he was proactive with our conveyancer, the bank and all other parties involved to make sure we had our i's and t's, ticked and crossed. As a first home buyer this was invaluable. Thankyou Phillip for helping us with our first home.”

Julie H.

Julie H.

“Phillip was great to work with! Helped us with refinancing and obtaining the best rate in the market. He was very efficient and made the whole process very easy. Would recommend him to anyone looking for a mortgage broker.”

Frequently Asked, Clearly Answered

You borrow enough to buy the new home whilst still owning the old one. That total is your peak debt. Interest is usually capitalised, so you're not making bridging repayments during the term. You get up to 12 months to sell the current home. When it sells, the proceeds clear down the peak debt, and what's left is your end debt, which you pay off like a normal home loan.

Up to 12 months in most cases. Some lenders allow longer for specific situations. The shorter the bridge, the less capitalised interest you accumulate. Most people aim to sell within three to six months.

Yes, usually not by much. But it outweighs the cost of moving twice, renting in between and rushing to sell your home for a lower price. Rates are typically close to standard variables. The real cost driver is how long the bridge runs and how the current home sells. Sell quickly and close to expected price, and bridging is a cheap timing tool. Drag it out and the interest adds up.

The equity in your current home usually does the job of a deposit. If you've got solid equity and the combined LVR sits under about 80%, you often don't need extra cash for a deposit and we factor in stamp duty and costs into your loan.

You have to sell within the time period. Most people who bridge have done their research and know how long it will take to sell and what they’ll get. If you aren't certain that you can sell your home realistically in 6 to 12 months then we would not recommend bridging. We plan for this. Options include extending the bridge with the lender, reducing the asking price, or in the worst case, refinancing the end debt against the property you've kept. The best protection is a realistic sale price from the start, not an optimistic one.

Yes, and we strongly recommend it. Pre-approval tells you your peak debt ceiling, so you can shop for the new home knowing exactly what you can spend. It also speeds up formal approval once you sign a contract.

Being self-employed doesn't rule out bridging. Different lenders treat self-employed income differently, and that's where lender choice really matters. We'll match you to a lender whose policy fits how your business income looks on paper.

Didn’t find your answer?

Work with Phillip on your move

Phillip Bui, Founder and Principal Mortgage Broker at Keystone Home Loans. Accredited broker and Full Member of the MFAA.

Based in Arncliffe, NSW, helping clients across Australia and overseas. Phillip maps your peak debt, end debt and timing before you commit to anything.

50+ lenders compared. Free, no-obligation consultation. You deal directly with Phillip from first call through to settlement. Helping clients in Sydney, across New South Wales and Australia-wide.