Find and compare bridging home loans

Sort By
Advertised Rate

4.16%

Variable

Comparison Rate*

4.20%

Company
Bank Australia
Repayment

$25,567

monthly

Features
Redraw facility
Offset Account
Borrow up to 90%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.92

/ 5
Go to site
More details
Advertised Rate

5.05%

Variable

Comparison Rate*

5.22%

Company
St.George Bank
Repayment

$1,263

monthly

Features
Redraw facility
Offset Account
Borrow up to 59.9999%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.48

/ 5
Go to site
More details
Advertised Rate

5.15%

Variable

Comparison Rate*

5.27%

Company
St.George Bank
Repayment

$1,288

monthly

Features
Redraw facility
Offset Account
Borrow up to 89.9999%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.48

/ 5
Go to site
More details
Advertised Rate

5.27%

Variable

Comparison Rate*

5.27%

Company
P&N Bank
Repayment

$1,318

monthly

Features
Redraw facility
Offset Account
Borrow up to 84.9999%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.33

/ 5
Go to site
More details
Advertised Rate

5.10%

Variable

Comparison Rate*

5.32%

Company
St.George Bank
Repayment

$1,275

monthly

Features
Redraw facility
Offset Account
Borrow up to 79.9999%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.48

/ 5
Go to site
More details
Advertised Rate

5.05%

Variable

Comparison Rate*

5.22%

Company
St.George Bank
Repayment

$25,689

monthly

Features
Redraw facility
Offset Account
Borrow up to 59.9999%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.48

/ 5
Go to site
More details
Advertised Rate

5.15%

Variable

Comparison Rate*

5.27%

Company
St.George Bank
Repayment

$25,703

monthly

Features
Redraw facility
Offset Account
Borrow up to 89.9999%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.48

/ 5
Go to site
More details
Advertised Rate

5.27%

Variable

Comparison Rate*

5.27%

Company
P&N Bank
Repayment

$25,719

monthly

Features
Redraw facility
Offset Account
Borrow up to 84.9999%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.33

/ 5
Go to site
More details
Advertised Rate

5.10%

Variable

Comparison Rate*

5.32%

Company
St.George Bank
Repayment

$25,696

monthly

Features
Redraw facility
Offset Account
Borrow up to 79.9999%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.48

/ 5
Go to site
More details
Advertised Rate

5.29%

Variable

Comparison Rate*

5.37%

Company
Heritage Bank
Repayment

$25,722

monthly

Features
Redraw facility
Offset Account
Borrow up to 85%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.33

/ 5
Go to site
More details
Advertised Rate

5.29%

Variable

Comparison Rate*

5.37%

Company
Heritage Bank
Repayment

$25,722

monthly

Features
Redraw facility
Offset Account
Borrow up to 85%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.33

/ 5
Go to site
More details

Learn more about home loans

What is a bridging loan?

When you need to move into a new property but you haven’t yet sold your old one, a bridging home loan can help. Bridging finance is a type of short term loan specially designed to make sure you don’t miss out on buying a new property because of temporary cash flow problems. It may be organised very quickly to help the process of moving go smoothly, with fewer hassles around lining up settlement dates.

How does bridging finance work?

A bridging loan allows you to access the funds you need to pay for a new home even before you have received money for your current home. 

A bridging loan covers the mortgage on your current property as well as the purchase price for your new property, making up your peak debt. Once your old property has sold, its sale price (minus upfront costs such as stamp duty) is used to reduce your peak debt, until you're left with your end debt. Your new loan will work like a typical home loan from this point forward. 

Because you effectively have two mortgages at once, bridging loans may only require interest-only loan repayments, or may even capitalise your interest charges into the peak debt until your first property sells. This can help to minimise your costs in the short term, though you may end up paying more in the long term.

A bridging loan may require you to get two valuations - one for your old property and one for your new property - to confirm the property values.

There are two different types of bridging loan:

Open bridging loans

Open bridging loans are available to borrowers who haven’t yet found buyers for their existing properties. They’re usually arranged for a bridging period of 12 months maximum, and there has to be a plan in place for what will happen if the property isn’t sold by then. You’ll have to demonstrate that you are making an effort to find a buyer, and that you have a reasonable amount of equity in the property you’re selling. 

Closed bridging loans

Closed bridging loans are available to people who have found buyers for their existing properties but haven’t yet completed all the paperwork. Because there’s less chance of things going wrong at this stage, these loans are usually quite a bit cheaper.

Bridging loans and building

A bridging home loan can also be used if you’re building the dream home you want to move into. The loan amount can free up funds to cover the cost of the build so that you are able to stay in your current property until the new one is ready. This can be considerably cheaper than renting, and help to reduce your overall moving costs.

How does a bridging loan compare to similar products?

Just like other home loans in Australia, a bridging loan may require you to pay for lenders mortgage insurance (LMI). If you hold less than 20 per cent of your peak debt as equity in your current property, you may need to pay for LMI. This is separate to the deposit you'll need for your new property purchase. 

One alternative option for securing your new property purchase is to place a deposit bond on it. A deposit bond is a guarantee from an insurance company that you will complete your purchase, even if you won't have the full deposit available until the sale of your current property is finalised. If you don't complete your property purchase in the agreed time frame, the deposit bond will pay out to the seller. Unlike with a bridging loan, you won’t need to pay interest with a deposit bond, but you will need to pay a one-off deposit bond fee, the cost of which will depend on the value of the property you’re trying to buy.

Main features of bridging finance

  • Easy to arrange;
  • Gives you fast access to funds;
  • Bridges the gap between buying and selling;
  • Helps if you want to build your new home.

Bridging loan risks and rewards

One potential drawback of a bridging finance is that bridging loans don't typically offer a redraw facility. This means that even if you make extra repayments onto your bridging loan, you won't be able to redraw this money if you need it again. 

Closed bridging loans can be relatively low cost and low risk. Open bridging loans carry more risk but as long as you work out your contingency plans carefully with the help of a financial adviser, you should be able to avoid finding yourself in trouble. The more honest you are when arranging your loan, the less likely it is that things will go wrong. 

Having a bridging loan in place makes the process of moving from one owned property to another far less disruptive. Properly managed, it can also make it considerably less expensive overall. It's important to check with a mortgage broker or similar financial adviser whether a bridging loan may be the right choice for your financial situation.

Frequently asked questions

What is bridging finance?

A loan of shorter duration taken to buy a new property before a borrower sells an existing property, usually taken to cover the financial gap that occurs while buying a new property without first selling an older one.

Usually, these loans have higher interest rates and a shorter repayment duration.

How can I get ANZ home loan pre-approval?

Shopping for a new home is an exciting experience and getting a pre-approval on the loan may give you the peace of mind that you are looking at properties within your budget. 

At the time of applying for the ANZ Bank home loan pre-approval, you will be required to provide proof of employment and income, along with records of your savings and debts.

An ANZ home loan pre-approval time frame is usually up to three months. However, being pre-approved doesn’t necessarily mean you will get your home loan. Other factors could lead to your home loan application being rejected, even with a prior pre-approval. Some factors include the property evaluation not meeting the bank’s criteria or a change in your financial circumstances.

You can make an application for ANZ home loan pre-approval online or call on 1800100641 Mon-Fri 8.00 am to 8.00 pm (AEST).

How long does Bankwest take to approve home loans?

Full approval for a home loan usually involves a property valuation, which, Bankwest suggests, can take “a week or two”. As a result, getting your home loan approved may take longer. However, you may get full approval within this time if you applied for and received conditional approval, sometimes called a pre-approval, from Bankwest before finalising the home you want to buy.  

Another way of speeding up approvals can be by completing, signing, and submitting your home loan application digitally. Essentially, you give the bank or your mortgage broker a copy of your home’s sale contract and then complete the rest of the steps online. Bankwest has claimed this cuts the approval time to less than four days, although this may only happen if your income and credit history can be verified easily, or if your home’s valuation doesn’t take time.

Can I get a NAB home loan on casual employment?

While many lenders consider casual employees as high-risk borrowers because of their fluctuating incomes, there are a few specialist lenders, such as NAB, which may provide home loans to individuals employed on a casual basis. A NAB home loan for casual employment is essentially a low doc home loan specifically designed to help casually employed individuals who may be unable to provide standard financial documents. However, since such loans are deemed high risk compared to regular home loans, you could be charged higher rates and receive lower maximum LVRs (Loan to Value Ratio, which is the loan amount you can borrow against the value of the property).

While applying for a home loan as a casual employee, you will likely be asked to demonstrate that you've been working steadily and might need to provide group certificates for the last two years. It is at the lender’s discretion to pick either of the two group certificates and consider that to be your income. If you’ve not had the same job for several years, providing proof of income could be a bit of a challenge for you. In this scenario, some lenders may rely on your year to date (YTD) income, and instead calculate your yearly income from that.

Can I take a personal loan after a home loan?

Are you struggling to pay the deposit for your dream home? A personal loan can help you pay the deposit. The question that may arise in your mind is can I take a home loan after a personal loan, or can you take a personal loan at the same time as a home loan, as it is. The answer is that, yes, provided you can meet the general eligibility criteria for both a personal loan and a home loan, your application should be approved. Those eligibility criteria may include:

  • Higher-income to show repayment capability for both the loans
  • Clear credit history with no delays in bill payments or defaults on debts
  • Zero or minimal current outstanding debt
  • Some amount of savings
  • Proven rent history will be positively perceived by the lenders

A personal loan after or during a home loan may impact serviceability, however, as the numbers can seriously add up. Every loan you avail of increases your monthly installments and the amount you use to repay the personal loan will be considered to lower the money available for the repayment of your home loan.

As to whether you can get a personal loan after your home loan, the answer is a very likely "yes", though it does come with a caveat: as long as you can show sufficient income to repay both the loans on time, you should be able to get that personal loan approved. A personal loan can also help to improve your credit score showing financial discipline and responsibility, which may benefit you with more favorable terms for your home loan.

How much deposit do I need for a home loan from ANZ?

Like other mortgage lenders, ANZ often prefers a home loan deposit of 20 per cent or more of the property value when you’re applying for a home loan. It may be possible to get a home loan with a smaller deposit of 10 per cent or even 5 per cent, but there are a few reasons to consider saving a larger deposit if possible:

  • A larger deposit tells a lender that you’re a great saver, which could help increase the chances of your home loan application getting approved.
  • The more money you pay as a deposit, the less you’ll have to borrow in your home loan. This could mean paying off your loan sooner, and being charged less total interest.
  • If your deposit is less than 20 per cent of the property value, you might incur additional costs, such as Lenders Mortgage Insurance (LMI).

How much deposit do I need for a home loan from NAB?

The right deposit size to get a home loan with an Australian lender will depend on the lender’s eligibility criteria and the value of your property.

Generally, lenders look favourably on applicants who save up a 20 per cent deposit for their property This also means applicants do not have to pay Lenders Mortgage Insurance (LMI). However, you may still be able to obtain a mortgage with a 10 - 15 per cent deposit.  

Keep in mind that NAB is one of the participating lenders for the First Home Loan Deposit Scheme, which allows eligible borrowers to buy a property with as low as a 5 per cent deposit without paying the LMI. The Federal Government guarantees up to 15 per cent of the deposit to help first-timers to become homeowners.

What is a low-deposit home loan?

A low-deposit home loan is a mortgage where you need to borrow more than 80 per cent of the purchase price – in other words, your deposit is less than 20 per cent of the purchase price.

For example, if you want to buy a $500,000 property, you’ll need a low-deposit home loan if your deposit is less than $100,000 and therefore you need to borrow more than $400,000.

As a general rule, you’ll need to pay LMI (lender’s mortgage insurance) if you take out a low-deposit home loan. You can use this LMI calculator to estimate your LMI payment.

How do I refinance my home loan?

Refinancing your home loan can involve a bit of paperwork but if you are moving on to a lower rate, it can save you thousands of dollars in the long-run. The first step is finding another loan on the market that you think will save you money over time or offer features that your current loan does not have. Once you have selected a couple of loans you are interested in, compare them with your current loan to see if you will save money in the long term on interest rates and fees. Remember to factor in any break fees and set up fees when assessing the cost of switching.

Once you have decided on a new loan it is simply a matter of contacting your existing and future lender to get the new loan set up. Beware that some lenders will revert your loan back to a 25 or 30 year term when you refinance which may mean initial lower repayments but may cost you more in the long run.

What is a loan-to-value ratio (LVR)?

A loan-to-value ratio (otherwise known as a Loan to Valuation Ratio or LVR), is a calculation lenders make to work out the value of your loan versus the value of your property, expressed as a percentage.   Lenders use this calculation to help assess your suitability for a home loan, and whether you need to pay lender’s mortgage insurance (LMI). As a general rule, most banks will require you to pay LMI if your loan-to-value ratio is 80 per cent or more.   LVR is worked out by dividing the loan amount by the value of the property. If you are looking for a quick ball-park estimate of LVR, the size of your deposit is a good indicator as it is directly proportionate to your LVR. For instance, a loan with an LVR of 80 per cent requires a deposit of 20 per cent, while a 90 per cent LVR requires 10 per cent down payment. 

LOAN AMOUNT / PROPERTY VALUE = LVR%

While this all sounds simple enough, it is worth doing a more accurate calculation of LVR before you commit to buying a place as there are some traps to be aware of. Firstly, the ‘loan amount’ is the price you paid for the property plus additional costs such as stamp duty and legal fees, minus your deposit amount. Secondly, the ‘property value’ is determined by your lender’s valuation of the property, not the price you paid for it, and sometimes these can differ so where possible, try and get your bank to evaluate the property before you put in an offer.

What is equity? How can I use equity in my home loan?

Equity refers to the difference between what your property is worth and how much you owe on it. Essentially, it is the amount you have repaid on your home loan to date, although if your property has gone up in value it can sometimes be a lot more.

You can use the equity in your home loan to finance renovations on your existing property or as a deposit on an investment property. It can also be accessed for other investment opportunities or smaller purchases, such as a car or holiday, using a redraw facility.

Once you are over 65 you can even use the equity in your home loan as a source of income by taking out a reverse mortgage. This will let you access the equity in your loan in the form of regular payments which will be paid back to the bank following your death by selling your property. But like all financial products, it’s best to seek professional advice before you sign on the dotted line.

What are the pros and cons of no-deposit home loans?

It’s no longer possible to get a no-deposit home loan in Australia. In some circumstances, you might be able to take out a mortgage with a 5 per cent deposit – but before you do so, it’s important to weigh up the pros and cons.

The big advantage of borrowing 95 per cent (also known as a 95 per cent home loan) is that you get to buy your property sooner. That may be particularly important if you plan to purchase in a rising market, where prices are increasing faster than you can accumulate savings.

But 95 per cent home loans also have disadvantages. First, the 95 per cent home loan market is relatively small, so you’ll have fewer options to choose from. Second, you’ll probably have to pay LMI (lender’s mortgage insurance). Third, you’ll probably be charged a higher interest rate. Fourth, the more you borrow, the more you’ll ultimately have to pay in interest. Fifth, if your property declines in value, your mortgage might end up being worth more than your home.

What is a line of credit?

A line of credit, also known as a home equity loan, is a type of mortgage that allows you to borrow money using the equity in your property.

Equity is the value of your property, less any outstanding debt against it. For example, if you have a $500,000 property and a $300,000 mortgage against the property, then you have $200,000 equity. This is the portion of the property that you actually own.

This type of loan is a flexible mortgage that allows you to draw on funds when you need them, similar to a credit card.

Will I have to pay lenders' mortgage insurance twice if I refinance?

If your deposit was less than 20 per cent of your property’s value when you took out your original loan, you may have paid lenders’ mortgage insurance (LMI) to cover the lender against the risk that you may default on your repayments. 

If you refinance to a new home loan, but still don’t have enough deposit and/or equity to provide 20 per cent security, you’ll need to pay for the lender’s LMI a second time. This could potentially add thousands or tens of thousands of dollars in upfront costs to your mortgage, so it’s important to consider whether the financial benefits of refinancing may be worth these costs.

Who has the best home loan?

Determining who has the ‘best’ home loan really does depend on your own personal circumstances and requirements. It may be tempting to judge a loan merely on the interest rate but there can be added value in the extras on offer, such as offset and redraw facilities, that aren’t available with all low rate loans.

To determine which loan is the best for you, think about whether you would prefer the consistency of a fixed loan or the flexibility and potential benefits of a variable loan. Then determine which features will be necessary throughout the life of your loan. Thirdly, consider how much you are willing to pay in fees for the loan you want. Once you find the perfect combination of these three elements you are on your way to determining the best loan for you. 

What is an interest-only loan? How do I work out interest-only loan repayments?

An ‘interest-only’ loan is a loan where the borrower is only required to pay back the interest on the loan. Typically, banks will only let lenders do this for a fixed period of time – often five years – however some lenders will be happy to extend this.

Interest-only loans are popular with investors who aren’t keen on putting a lot of capital into their investment property. It is also a handy feature for people who need to reduce their mortgage repayments for a short period of time while they are travelling overseas, or taking time off to look after a new family member, for example.

While moving on to interest-only will make your monthly repayments cheaper, ultimately, you will end up paying your bank thousands of dollars extra in interest to make up for the time where you weren’t paying off the principal.

What is an investment loan?

An investment loan is a home loan that is taken out to purchase a property purely for investment purposes. This means that the purchaser will not be living in the property but will instead rent it out or simply retain it for purposes of capital growth.

Remaining loan term

The length of time it will take to pay off your current home loan, based on the currently-entered mortgage balance, monthly repayment and interest rate.

Why should I get an ING home loan pre-approval?

When you apply for an ING home loan pre-approval, you might be required to provide proof of employment and income, savings, as well as details on any on-going debts. The lender could also make a credit enquiry against your name. If you’re pre-approved, you will know how much money ING is willing to lend you. 

Please note, however, that a pre-approval is nothing more than an idea of your ability to borrow funds and is not the final approval. You should receive the home loan approval  only after finalising the property and submitting a formal loan application to the lender, ING. Additionally, a pre-approval does not stay valid indefinitely, since your financial circumstances and the home loan market could change overnight.

 

 

Can I apply for an ANZ non-resident home loan? 

You may be eligible to apply for an ANZ non-resident home loan only if you meet the following two conditions:

  1. You hold a Temporary Skill Shortage (TSS) visa or its predecessor, the Temporary Skilled Work (subclass 457) visa.
  2. Your job is included in the Australian government’s Medium and Long Term Strategic Skills List. 

However, non-resident home loan applications may need Foreign Investment Review Board (FIRB) approval in addition to meeting ANZ’s Mortgage Credit Requirements. Also, they may not be eligible for loans that require paying for Lender’s Mortgage Insurance (LMI). As a result, you may not be able to borrow more than 80 per cent of your home’s value. However, you can apply as a co-borrower with your spouse if they are a citizen of either Australia or New Zealand, or are a permanent resident.