Build or buy before you sell with our home loan bridging finance interest rates and guide.
Our Go-Between Bridging loan offers you an easy way to purchase or build a new home before you sell your existing one. Rather than needing to make two sets of loan repayments while you are selling your existing home, no repayments are required on the new home loan for the bridging period. The length of your bridging period depends on whether you are buying or building your new home.
Buying an established home
Where you are buying an established home:
- A new loan is established to purchase the new home
- You continue to make repayments on your existing loan¹
In the meantime, interest is charged to your new home loan account as normal. You do not need to make any repayments on that loan for 6 months or until you sell your existing property, whichever occurs first
Building a new home
- You continue to make repayments on your existing loan¹
In the meantime, interest is charged to your new home loan account as normal. You do not need to make any repayments on that loan for 12 months or until you sell your existing property, whichever occurs first
Loan amounts
You can borrow up to 95%* of the value of your new home plus any associated fees and charges. As long as your combined loans do not exceed 85% (or 80% for Lo Doc loans) of the combined value of both your new and existing properties (after taking into account the amount of interest that will be charged on the new loan during the bridging period).
Assessment is based on the repayment that will be required once the existing home is sold. The repayment amount will be based on the end loan of:
- The loan required to purchase/build the new home; plus
- Interest that accumulated on the new loan during the bridging period; less
- The agreed amount by which the new loan can be reduced upon sale of the existing property
*subject to loan purpose, income verification and LMI
Interest rates
Bridging is available with all our term loan interest rate and repayment options, including the 100% offset Home Loan
¹What if I have a loan with another lender?
Once your existing home is sold, you must first use the funds to pay out your existing home loan. You must then:
Where your new home is established or newly completed
Pay sufficient funds into your new loan, so that the loan reduces to the amount specified in your bridging loan contract
Where your new home is still being built:
We will advise you if any of your surplus funds will need to be put towards the construction cost, before any further funds are provided by us. Rest assured this will never be more than you agreed to at the start of the bridging period.
What happens when my existing loan is sold?
Once your existing home is sold, you must first use the funds to pay out your existing home loan. You must then:
Where your new home is established or newly completed
Pay sufficient funds into your new loan, so that the loan reduces to the amount specified in your bridging loan contract
Where your new home is still being built:
We will advise you if any of your surplus funds will need to be put towards the construction cost, before any further funds are provided by us. Rest assured this will never be more than you agreed to at the start of the bridging period.
period?
have been making on the existing home loan.
* Terms conditions & lending criteria applies. Full details of terms & conditions available upon application