What does this bridge cost, and for how long?
Bridging cost check
Buying before you sell means the money has to exist twice. Bridging finance covers the gap between what you have and what the purchase needs — for a few months, not a few years. The number that matters is the cost of the gap, and that is mostly decided by two things: how much you bridge and how long you hold it.
Interest on a bridging facility accrues by the day, and the day count is the part you do not control. If your sale date moves four weeks, the cost moves with it. That is why this calculator leads with the holding period rather than the rate.
Bridging rates sit above standard home loan rates because the facility is short and the security is a property that has to sell. Your rate depends on your circumstances and the market on the day. This is not a quote. This site does not list lender rate tables or rankings. Rates move and they differ between borrowers. In the chat, a broker-side assistant can share current reference rates, which are indicative only and subject to assessment of your own application. The Reserve Bank publishes the cash rate target that lenders price off — see the reference below.
Verdict
This models interest on an actual-days basis and treats your fees as interest-bearing, which is common but not universal. Your contract may calculate interest differently, may not charge interest on fees, and may change the amount or the terms if the sale slips. Treat the figure as a shape, then check it against the written quote.
A free review by a licensed mortgage broker. Your calculator numbers go with the message so you do not have to type them again. A review is not a credit approval or a rate offer — the lender decides whether to approve your application and on what terms.
bridgingloan.help provides general information about bridging finance for an Australian property purchase. We are not a lender, credit provider or credit broker, and we do not hold an Australian Credit Licence or an Australian Financial Services Licence. Nothing here is personal financial advice, a credit approval, a rate offer or a recommendation to use any lender or broker. Check your own contract and any written quote before deciding, and talk to a licensed mortgage broker.
This site does not list lender rate tables or rankings. Rates move and they differ between borrowers. In the chat, a broker-side assistant can share current reference rates, which are indicative only and subject to assessment of your own application. The Reserve Bank publishes the cash rate target that lenders price off — see the reference below.
Three things decide whether a bridging loan is cheap or expensive: the amount, the holding period, and whether the fees land inside the interest-bearing balance.
I have to buy before I sell. What does bridging finance cost me, and what belongs in the number?
The cost is not one figure. It is daily interest on the amount you bridge, plus establishment fees, plus stamp duty and legal costs you are carrying anyway. People quote the interest alone and are surprised by the total.
Read the guideHow many months can a bridging loan run, and what happens if my sale takes longer?
Bridging finance is priced for months, not years. Interest accrues daily, most facilities are priced with a time limit in mind, and the moment your holding period stretches, the cost curve turns sharply against you.
Read the guideWhy is my bridging amount higher than I asked for? And which fees are one-off versus ongoing?
Establishment fees and valuation, legal and inspection costs often get added to the amount being financed, which means you pay interest on them too. That is why the number you borrow and the number you costed can be different.
Read the guide