Found the next home before selling this one? Get an indicative answer within 2 business days.
- Indicative assessment within 2 business days, with settlement typically 2 to 6 weeks
- Loans from $100K to $2M across the new purchase and your current home loan
- Homeowners upsizing, downsizing or moving for family or work who have signed on the next home first
- Covers the total you owe while you hold both homes (peak debt), then the smaller loan left once your sale settles (end debt)
- Full-doc (tax returns), low-doc or alt-doc (BAS, bank statements or an accountant's letter instead) options across our 90+ lender panel
You have signed on your next home, and the one you live in now has not sold. Two settlement dates and two properties can make the next few months feel uncertain. A bridging home loan lets you buy the new home first and use the proceeds of your current home to reduce the debt once it sells. It is not the only way to line up a sale and a purchase, and a longer settlement or selling first can sometimes do the same job at a lower cost. Settled With Joe can set out what a bridging loan would cost you in dollars, how long the lender allows, and what you would owe after the sale.
Who we can help access finance
- Families who have exchanged on a larger home and have just listed their current home for sale.
- Downsizers who have committed to an apartment or villa while their family home is still being prepared for market.
- Homeowners relocating interstate or to a regional town for work, where the new purchase settles before the old home has a buyer.
- Sellers whose sale has exchanged but settles weeks after the purchase they need to complete.
- Self-employed homeowners whose income is verified through BAS or an accountant's letter rather than recent tax returns.
How Bridging Home Loans Work
When the bridging loan starts, the lender works out your peak debt. Peak debt is the total you owe while you hold both homes: your current home loan plus the amount needed to buy the new one, including costs such as stamp duty. The lender usually takes a mortgage over both properties until the sale settles, so both homes are at risk if the loan is not repaid. Get independent legal advice before you sign. When your current home sells, the net proceeds pay down peak debt. Whatever is left is the end debt, and it is repaid like a standard home loan. If the sale covers everything, there is no end debt.
The bridging period is limited. Many lenders allow up to 12 months, and some say the term generally cannot be extended. ASIC's responsible lending guide (RG 209) names bridging loans as a case where expecting repayment from income alone may not be reasonable, because the sale is the planned repayment. Lenders still check that your income can carry the end debt.
Joseph Farhat and his team review your purchase contract, the likely sale price of your current home and your income, then compare bridging policy across 90+ bank, non-bank, and specialist lenders. We are a finance broker. Your conveyancer or solicitor handles the contract dates, and an agent can speak to the likely sale price.
What Lenders Assess for Bridging Home Loans
Expected sale price
lenders value your current home themselves and may use a figure below your agent's estimate when they work out end debt.
End debt
whether your income covers the loan that remains after the sale, assessed as a normal home loan.
Peak debt against both properties
the loan-to-value ratio (LVR), the loan as a share of the property's value, measured across both homes.
Sale status
whether your current home is listed, under offer, or exchanged with a settlement date.
Bridging term
whether the lender's maximum period fits a realistic time to sell in your area and price range.
Living costs while you hold two homes
rates, insurance, strata and any interest you pay monthly rather than adding to the loan balance.
The Bridging Home Loan Process: What to Expect
- Tell Joseph Farhat and his team about the new purchase, its settlement date, your current loan and what you expect your home to sell for.
- We work out peak debt and a range for end debt, so you can see the numbers before a lender is approached.
- We compare bridging terms, interest treatment and end debt policy across the panel, then lodge with the lender that fits your sale and purchase.
- The lender values both properties and issues formal approval, and the purchase settles on its contract date with your conveyancer.
- Your current home sells and settles, the net proceeds reduce peak debt, and the end debt continues as an ordinary home loan.
Indicative Finance Options
| Lender Type | Pricing | Max LVR | Typical Loan Range | Bridging Term | Speed to Settlement |
|---|---|---|---|---|---|
| Bank | Sharpest available pricing | Peak debt up to 80% of the combined value of both properties | $100K to $2M | Commonly up to 12 months, then up to 30 years on end debt | 2 to 6 weeks |
| Non-Bank Lenders | Priced for flexibility | Peak debt up to 80% of the combined value of both properties | $100K to $2M | Commonly up to 12 months, then up to 30 years on end debt | 2 to 4 weeks |
| Private Finance | Not typically used for owner-occupied bridging. Available for unique scenarios only. | ||||
Indicative figures only. Actual terms depend on your circumstances, the property, and lender assessment at the time of application. We quote your rate and comparison rate for your specific loan amount and term before you apply. Terms are subject to change.
Why borrowers choose Settled With Joe for a bridging home loan
We represent you, not the lender
when we provide credit assistance on consumer lending, we owe you a best interests duty.
Peak debt and end debt in dollars
you see what you would owe at the peak and after the sale before anything is lodged.
The other routes on the table
a longer settlement, selling first, or a deposit release by agreement are compared with bridging, not skipped.
One application, not several
each credit enquiry is recorded on your file, so we approach the right lender first.
90+ lenders on one panel
bank, non-bank, and specialist, so a clean file can go to a bank at a sharper rate and a self-employed one still has options.
Private finance for unique scenarios
where bank and non-bank lenders do not fit, we can introduce you to private finance options.
Usually no direct cost to you
as a broker we are typically paid by the lender on settlement.
Frequently asked questions
What is a bridging home loan?
A bridging home loan funds the purchase of your next home while you still own your current one. The lender lends against both properties for a limited period, called the bridging term. When your current home sells, the proceeds pay down the loan, and any balance becomes an ordinary home loan.
Will applying affect my credit score?
Each credit application is recorded on your credit file, whether or not it is approved. Several applications close together can make the next lender cautious. With two settlement dates in play it is tempting to apply to a few lenders at once. We match your sale and purchase to the lender whose bridging policy fits before anything is lodged, so the first application goes to the lender most likely to fit, rather than to several at once.
What is a comparison rate, and why are no rates shown on this page?
A comparison rate rolls the interest rate and most standard fees into one percentage, so two loans can be compared on a like-for-like basis. It is worked out for a set loan amount and term, so a figure printed here would not match your peak debt or your bridging period. We quote the rate and the comparison rate for your actual amounts, along with the total cost of carrying peak debt until your sale settles, before you apply.
Do you work with borrowers with bad credit?
Yes, we do. Late payments, a default or a paid judgment on your file do not rule you out of bridging finance, and we will not make you feel awkward about it. For this product, lenders focus on the equity across both homes, the likely sale price and whether your income covers the end debt. Several lenders on our panel give those more weight than the credit file and price for the risk rather than decline. Telling us early means we approach the right lender first. Joseph Farhat and his team will tell you honestly what is achievable before you apply anywhere.
Do you act in my best interests?
Yes. When we give credit assistance on a consumer loan, the law requires us to act in your best interests and to put your interests first if they conflict with ours. That duty has applied since 1 January 2021. We make reasonable inquiries into your requirements, objectives and financial situation, and we must not suggest a loan that is unsuitable for you. For bridging, that includes checking that the end debt is one your income can carry. You receive our Credit Guide before we provide credit assistance.
What do peak debt and end debt mean?
Peak debt is the most you owe during the bridging period. End debt is what remains once the net proceeds of your sale have paid it down. For example, if peak debt is $1.4M and your home sells for $720K with $20K in selling costs, the net proceeds of $700K reduce peak debt and the end debt is about $700K. Lenders assess your income against the end debt.
How long does a bridging loan last?
Many lenders allow up to 12 months for the bridging period. Some say that period generally cannot be extended, so the time it is likely to take to sell your home in your area matters at the start. APRA describes bridging finance as a temporary arrangement it expects to be completed within twelve months.
Do I make repayments during the bridging period?
That depends on the lender. At some lenders, repayments during the bridging period are interest only. With capitalised interest, the interest is added to the balance rather than paid monthly, so you pay no interest from your income during the term but owe more when the sale settles. Whether a lender offers capitalised interest is lender policy. We show you the monthly cost, or the added balance, for each option you are offered.
What if my home has not sold near the end of the bridging term?
Talk to your lender as early as possible, and tell us too. Your loan contract sets out what the lender can do when the bridging period ends, and because both homes are security, that can include requiring a sale. Depending on the lender's policy and your position, the options can include reviewing your sale price or refinancing the remaining debt where a lender will assess it. If repayments are becoming hard to manage, the National Debt Helpline on 1800 007 007 offers free financial counselling, and your lender has a hardship process you can ask about.
Does APRA's debt-to-income limit affect bridging loans?
From 1 February 2026, APRA limits each bank to 20% of new owner-occupied loans, and separately 20% of new investment loans, at a debt-to-income ratio (DTI) of 6 times or more. DTI is your total debt compared with your income. It limits each bank's share of that lending, not any one borrower. APRA lists bridging finance as an exemption, but banks decide how they report it, so some bridging loans sit outside APRA's DTI limit, depending on how the lender reports them.
Is there a way to buy before I sell without a bridging loan?
Sometimes. A longer settlement on the new purchase, agreed with the vendor, can give your home time to sell. Selling first and renting removes the overlap, though it adds moving and rental costs. If your home has sold but not settled, the buyer's deposit can sometimes be released to fund your next deposit, by agreement. Your agent and conveyancer can tell you whether that is possible under your contract. We can compare the cost of each route with bridging.
Why work with Settled With Joe to arrange your bridging home loan?
Because you get one conversation instead of a round of applications. Many of the people we help with bridging are families, downsizers, self-employed homeowners and people moving for work, dealing with a purchase that has exchanged and a sale that has not. There is no judgement in the conversation. What matters is the equity across both homes, a realistic sale price and an end debt your income can carry. Our panel covers 90+ bank, non-bank, and specialist lenders, so a well-documented file can go to a bank at a sharper rate, and there are still options when income is harder to document. We are based in Sydney and work with borrowers Australia-wide. Joseph Farhat and his team will tell you honestly and early what is achievable.
Do you give financial advice?
No. We do not guide you on your finances, nor give financial advice. We focus on outcomes and solutions of presenting your unique scenario to the right lender so you can access funding in a timely and compliant manner.
Do you help with bridging home loans outside Sydney?
Yes. Settled With Joe is based in Sydney and arranges bridging home loans Australia-wide, covering both metro and regional areas. We work with clients in Sydney, Melbourne, Brisbane, Perth, Adelaide, and Canberra, as well as regional areas including Newcastle, Wollongong, Geelong, Gold Coast, Sunshine Coast, and Toowoomba. Joseph Farhat and his team will identify which lenders on the panel fit your two properties and your timeline.
