Estimate your peak debt, bridging finance interest costs, and end debt after selling your existing property — with sale price, time-to-sell and interest rate scenarios.
📖 22 min read · ⏱️ Calculator time: ~1 minute
Your Bridging Loan Details
Existing Property
Existing mortgage balance
$
Expected sale price
$
Selling costs
%
New Property
New purchase price
$
Stamp duty
$
Legal / conveyancing fees
$
LMI (if applicable)
$
Cash contributed upfront
$
Loan Terms
Interest rate (p.a.)
%
Expected bridging period
months
Bridging interest
End loan term (after sale)
years
Loan type
Bridging Loan Result
Peak Debt
—
Metric
Value
Results are estimates only. Actual bridging loan terms, interest calculation methods, and fees vary between lenders. Confirm exact figures with your lender.
💬 Thinking about a bridging loan? Comparing lenders or speaking with a mortgage broker can help you find the most competitive bridging rate and terms for your situation — a broker directory is coming soon to MegaCalcOnline.com. In the meantime, our Loan Comparison Rate Calculator can help you compare the true fee-inclusive cost of different loan offers.
📈 Loan Balance: Peak Debt to End Debt
📖 End Loan Amortisation Table (First 10 Years)
Year
Opening balance
Principal paid
Interest paid
Closing balance
⏱️ Last Updated: August 2026 | ✅ Reviewed by: Mohsin Iqbal — Australian Finance Content Review | Calculator methodology and general guidance reviewed regularly.
⚠️ Important: Results are estimates only. Actual bridging loan terms, interest calculation methods, fees and lending criteria vary significantly between lenders. Bridging finance carries genuine risk if your property doesn't sell within the expected timeframe — always confirm exact figures and discuss your specific situation with your lender or a mortgage broker.
A bridging loan is short-term finance that lets you purchase a new property before you've sold your existing one.
It "bridges" the gap between settling on your new home and receiving the sale proceeds from your old one, so you're not forced to sell first, move into temporary accommodation, and then buy — a sequence many Australians find impractical, especially with children, pets, or simply the hassle of moving twice.
How Bridging Finance Works in Australia
When you take out a bridging loan, your lender typically combines your existing mortgage balance with the cost of your new property (purchase price plus stamp duty, legal fees and any LMI) into a single, larger loan — this combined figure is your peak debt.
During the bridging period, before your old property sells, interest accrues on this peak debt.
Once your existing property sells, the net sale proceeds (sale price minus selling costs) pay down the peak debt, leaving your end debt — which then continues as your ongoing, standard home loan.
Peak Debt Explained
Peak debt is the maximum amount you owe during the bridging period — it's your existing mortgage balance plus your new property's purchase price plus purchase costs (stamp duty, legal fees, LMI if applicable), minus any cash you contribute upfront.
It's called "peak" because this is the highest point your debt reaches; it only decreases once your existing property sells.
The calculator above shows your peak debt as the headline result, since it's the figure most relevant to understanding your maximum exposure during the bridging period.
End Debt Explained
End debt is what remains once your existing property sells and the net proceeds are applied against your peak debt (plus any interest that accrued during the bridging period).
This end debt then becomes your ongoing mortgage, repaid as standard Principal & Interest over your remaining loan term. The Break-Even Sale Price panel in the calculator above shows exactly what sale price would reduce your end debt to zero.
Interest-Only vs Capitalised Interest
During the bridging period, you generally have two options for how interest is handled. Interest-only means you pay the interest charged each month out of pocket, keeping your loan balance flat at the peak debt amount.
Capitalised interest means the interest is added to your loan balance instead of being paid monthly — convenient if you don't have spare cash flow to service both properties at once, but the balance grows (and compounds) throughout the bridging period, meaning you'll owe more by the time your property sells. The calculator above lets you model either approach directly.
Open vs Closed Bridging Finance
Closed bridging finance is used when you already have an unconditional contract of sale for your existing property, with a confirmed settlement date — this gives the lender certainty about when the bridging period will end, and is generally easier to obtain and can attract a lower rate.
Open bridging finance is used when you haven't yet sold your existing property (or don't have a firm sale date), which carries more risk for the lender and often comes with stricter conditions, higher rates, or a maximum bridging period after which the lender may require the property to be sold regardless of price.
Eligibility for Bridging Finance
Lenders generally assess bridging finance applications based on your combined security (both properties), your serviceability for the end debt once your existing property sells, and increasingly, a realistic assessment of your existing property's likely sale price and timeframe.
Some lenders require a formal valuation of your existing property, and most will cap the bridging LVR (peak debt against combined security) — commonly around 80%, sometimes higher with LMI.
First home buyers typically aren't eligible for bridging finance, since it specifically requires an existing property to bridge from.
Lenders may also want to see evidence that your existing property is realistically priced for the current market — an overly ambitious asking price can work against your application, since it undermines the lender's confidence in your projected sale proceeds.
Self-employed applicants and those with more complex income structures may face additional documentation requirements, similar to a standard home loan application, since the lender still needs to assess your capacity to service the end debt.
Pre-Application Checklist
Before applying for bridging finance, it's worth having the following in order:
A realistic, ideally independently-supported estimate of your existing property's sale value (a recent appraisal or comparable sales in your area)
A clear view of your existing mortgage balance, including any exit fees or break costs if it's currently fixed
A signed contract (or at least a firm offer) on your new property, including the purchase price and settlement date
An understanding of your likely selling costs (agent commission, marketing, legal fees) for your existing property
A realistic timeframe for selling, informed by current local market conditions rather than an aspirational best case
Confirmation of whether you want interest-only or capitalised interest during the bridging period, based on your cash flow
Costs of Bridging Finance
Bridging loans typically carry a higher interest rate than a standard home loan, reflecting the additional risk and short-term nature of the product — commonly a premium of 0.5% to 1.5% or more above standard variable rates, though this varies by lender and by whether the bridging finance is open or closed.
Beyond interest, budget for the usual purchase costs on your new property (stamp duty, legal/conveyancing fees, and LMI if your LVR requires it), plus selling costs on your existing property (commonly 2-3% for agent commission and legal fees).
Some lenders also charge a separate bridging facility establishment fee, distinct from any fees on the ongoing end loan — always ask for a full breakdown of fees specific to the bridging structure, not just the headline interest rate.
The Cash Required at Settlement panel in the calculator above summarises the upfront costs you'll likely need in cash.
Risks of Bridging Finance
Your property doesn't sell in time — extending the bridging period means more accrued interest, and open bridging loans may have a maximum term after which the lender takes action, potentially requiring you to accept a lower offer to clear the debt.
Your property sells for less than expected — this directly increases your end debt and your ongoing repayments; the Different Sale Price Scenarios panel above quantifies this risk precisely for your own numbers, and it's worth stress-testing a genuinely conservative sale price rather than an optimistic one.
Interest rates rise during the bridging period — see the Interest Rate Scenarios panel above for the effect on your bridging interest and end debt; this risk compounds with a longer bridging period.
Capitalised interest compounds — the longer the bridging period, the more interest accrues on interest, particularly with capitalised interest; this is precisely why realistic time-to-sell estimates matter so much.
Serviceability of two properties — even with interest-only or capitalised bridging interest, you may still be responsible for other costs on both properties during the bridging period, such as council rates, insurance and utilities.
Market conditions changing mid-transaction — a softening property market between settling your purchase and listing your sale can materially affect your expected sale price, which is why many advisers recommend having your existing property genuinely ready to list (or already on the market) before committing to the new purchase.
State-by-State Considerations
Stamp duty timing and concessions vary across Australian states and territories, which can affect the exact peak debt calculation for your new purchase.
In most states, stamp duty is payable at or shortly after settlement of the new property, so it's typically included in your peak debt from day one of the bridging period.
Some states offer stamp duty concessions or exemptions for downsizers or eligible first-time sellers moving to a new principal place of residence — check current rules with your state's revenue office, since these can meaningfully reduce your upfront costs and therefore your peak debt.
Our dedicated Stamp Duty Calculator covers the current rates and concessions for all states and territories in detail.
Bridging Finance for Investors
Property investors sometimes use bridging finance to acquire a new investment property before selling an existing one, timing the transition to avoid missing a purchase opportunity.
The core mechanics are identical to an owner-occupier scenario, but the tax treatment of interest during the bridging period can be more complex — particularly around apportioning deductible interest if the existing property being sold was an investment and the new property is owner-occupied, or vice versa.
This is a case where speaking with a registered tax agent before settling on a bridging structure is particularly worthwhile.
Bridging Finance for Downsizers
Downsizers — often retirees or empty-nesters moving to a smaller property — are a common bridging finance user group, and often end up in the most favourable position: since the new purchase price is typically lower than the existing property's expected sale price, the resulting end debt is often small or even zero, with genuine surplus proceeds left over.
If this describes your situation, pay close attention to the Break-Even Sale Price panel above — many downsizers find their expected sale price comfortably exceeds it.
Alternatives to Bridging Finance
If bridging finance doesn't suit your situation, several alternatives are worth considering. Selling first and renting temporarily removes bridging risk entirely, at the cost of moving twice and potentially needing to find short-term accommodation in a tight rental market.
Negotiating a longer settlement period on your new purchase gives you more time to sell before needing bridging finance at all, or reduces the bridging period required.
A subject-to-sale offer on your new property makes your purchase conditional on selling your existing home, shifting timing risk to the seller rather than to you — though this is a harder offer for a seller to accept in a competitive market.
Some buyers and agents can coordinate simultaneous settlement, selling and buying on the same day, which eliminates the bridging period altogether but requires careful coordination and a degree of luck with timing.
Each alternative has trade-offs worth discussing with a mortgage broker or buyer's agent familiar with your local market.
Refinancing After a Bridging Loan
Once your existing property sells and your loan converts to the end debt, it's worth reviewing whether your current lender's ongoing rate is competitive, or whether refinancing to a different lender makes sense.
Use our dedicated Refinance Calculator to compare your options once you've reached this stage.
Tax Considerations (General Information Only)
If your existing property was an investment property, interest on the portion of your bridging loan attributable to that investment property may be deductible — this calculator provides general information only, not tax advice.
Consult a registered tax agent about the deductibility of interest across the bridging period for your specific circumstances, since apportionment between an owner-occupied new purchase and an investment sale can be genuinely complex.
A Detailed Worked Example, Step by Step
To make the mechanics concrete, walk through a typical upsizing scenario using the calculator's default numbers.
Sarah owns a home with a $400,000 mortgage balance, expects to sell it for around $750,000, and has found a new property she wants to buy for $900,000.
Step 1 — Calculate peak debt. Sarah's lender combines her existing $400,000 mortgage with the $900,000 new purchase price, plus $40,000 in stamp duty and $2,000 in legal fees on the new property.
With no cash contributed upfront, her peak debt is $400,000 + $900,000 + $40,000 + $2,000 = $1,342,000.
Step 2 — Interest accrues during the bridging period. Sarah expects to sell within 6 months and chooses to capitalise the interest at a 7.0% bridging rate rather than pay it monthly, since her cash flow is tight while she's settling into the new home.
Over 6 months, compounding monthly, this adds roughly $47,660 in capitalised interest — bringing her balance at the time of sale to approximately $1,389,660.
Step 3 — Sell the existing property. Sarah's home sells for $750,000. After 2.5% in agent commission and legal fees ($18,750), her net sale proceeds are $731,250.
Step 4 — Calculate end debt. Her net sale proceeds ($731,250) are applied against her balance at sale ($1,389,660), leaving an end debt of $658,410. This becomes her new, ongoing mortgage.
Step 5 — Ongoing repayments. At 7.0% over a 30-year term, Sarah's end debt of $658,410 requires a Principal & Interest repayment of approximately $4,380 per month going forward — this is the figure she needs to budget for once her bridging period ends.
Try adjusting the sale price, bridging period, or interest handling in the calculator above to see how each assumption changes this outcome for your own numbers.
How Lenders Assess Bridging Loan Applications
Lenders assess bridging finance differently to a standard home loan application, since they're effectively taking on two properties as security for a temporary period.
Key factors include: your serviceability for the eventual end debt (not just the peak debt); a realistic, often independently-verified estimate of your existing property's sale value; the combined LVR across both properties; and — particularly for open bridging finance — evidence of your property being actively marketed, since an unsold property after many months represents ongoing risk for the lender.
Some lenders will only approve open bridging finance up to a shorter maximum term (such as 6 months) before requiring the loan to convert or the property to be sold at a reduced price.
Bridging Finance and Timing Your Sale
The timing of your sale relative to your purchase is one of the biggest levers you have over your total bridging cost.
Selling and settling as close as possible to your new purchase minimises the bridging period — and therefore the interest that accrues.
Some buyers coordinate a long settlement on their new purchase (giving more time to sell) or a short settlement on their existing sale (bringing forward the proceeds), reducing or even eliminating the bridging period altogether.
Discuss timing strategy with your real estate agent and mortgage broker early, since it can materially change your total bridging cost, as shown in the Time-to-Sell Simulation panel above.
Questions to Ask Your Lender or Broker
Is this open or closed bridging finance, and what's the maximum term available?
Is interest capitalised or paid monthly, and can I choose?
What happens if my property hasn't sold by the end of the bridging term?
What LVR cap applies to the peak debt, and does LMI apply?
Are there establishment fees specific to the bridging facility, separate from the ongoing loan?
How is my existing property's value assessed — a formal valuation, or my own estimate?
Can I make voluntary repayments during the bridging period to reduce the balance?
Worked Examples
Scenario
Key detail
What to notice
Standard upsize
$400k existing balance, $900k new purchase, $750k expected sale
See base example in the calculator above
Short bridging period
3 months
Lower total bridging interest — see Time-to-Sell panel
Long bridging period
12-18 months
Materially higher interest cost — a genuine risk factor
Interest-only bridging
Paid monthly, balance stays flat
Requires cash flow to service during bridging
Capitalised interest
Added to balance, compounds
No cash flow needed now, but higher balance at sale
Sale price falls short
Below break-even price
End debt remains — see Break-Even Sale Price panel
Sale price exceeds balance
Strong market, high sale price
Surplus cash after clearing the bridging balance
Rate rise during bridging
+1% mid-bridging
Higher bridging interest and end debt — see Rate Scenarios panel
Enter each of these scenarios into the calculator above (adjusting sale price, bridging period, interest handling and rate) to see exact figures for your own situation.
Is Bridging Finance Right for You? A Decision Framework
Bridging finance suits situations where you've found the right new property and don't want to risk losing it while you wait to sell, or where moving twice (selling first, renting, then buying) is genuinely impractical for your circumstances.
It's less suited to uncertain markets where your sale price and timeframe are hard to predict, or where your household budget has little room to absorb a worse-than-expected outcome.
Before committing, run your own numbers through the calculator above using a conservative (not optimistic) sale price and a realistic (not best-case) time-to-sell — if your end debt and repayments remain manageable even under those more cautious assumptions, bridging finance is likely a reasonable fit.
If the numbers only work under best-case assumptions, that's a signal to reconsider the alternatives outlined above, or to negotiate more time before committing to the new purchase.
Pros and Cons of Bridging Finance
Pros
Cons
Buy your new home without selling first
Typically higher interest rate than a standard home loan
Avoid moving twice or renting in between
Risk if your property sells for less or takes longer than expected
Secure a property you don't want to lose to another buyer
Capitalised interest compounds, growing your balance over time
Flexible interest-only or capitalised repayment options
More complex application and assessment than a standard loan
Combined security can support a larger purchase
Additional fees specific to the bridging facility may apply
Who Should Use This Calculator?
Upsizers — moving to a larger or more expensive home, wanting to secure the new property before their current one sells.
Downsizers — moving to a smaller, typically lower-priced property, often ending up with a small end debt or surplus once their existing home sells.
Property investors — timing an investment purchase without missing an opportunity while a sale settles, with the added complexity of interest deductibility to discuss with a tax agent.
Homeowners buying before selling — anyone who has found the right next home and doesn't want to risk losing it while their current property is still on the market.
Bridging Loan vs Construction Loan
Both bridging loans and construction loans involve a temporary, interest-focused phase before converting to a standard mortgage — but they solve different problems. A bridging loan covers the gap between buying a new established property and selling your existing one.
A construction loan releases funds progressively as a new home is built, with interest charged only on the amount drawn down at each stage.
If you're planning to buy land and build (rather than buy an established home) while still owning your current property, you may need both structures together — a bridging component for the land purchase and existing mortgage, combined with construction drawdowns as the build progresses. See our dedicated Construction Loan Calculator for the building-specific mechanics.
Ways to Reduce Bridging Interest
Minimise the bridging period — the single biggest lever; coordinate settlement timing as closely as possible between your sale and purchase.
List your existing property early — ideally before or immediately after settling your new purchase, rather than waiting.
Choose interest-only over capitalising, if your cash flow allows — this avoids the compounding effect, since your balance stays flat rather than growing.
Make voluntary repayments during the bridging period, if your lender permits, to reduce the balance before your existing property sells.
Price your existing property realistically from the outset — an overpriced listing that sits on the market longer directly extends your bridging period and interest cost.
Negotiate the bridging rate — compare offers from multiple lenders, since bridging rate premiums vary meaningfully between them.
Common Mistakes
Overestimating the sale price — an optimistic sale price estimate can leave you with a much larger end debt than expected; stress-test with the Sale Price Scenarios panel above using a genuinely conservative figure, not your hoped-for outcome.
Underestimating the time to sell — property markets can be slower than expected, especially outside peak selling seasons or in a softening market; the Time-to-Sell Simulation shows the real cost of delays, and it's worth modelling a longer period than you expect as a safety margin.
Not budgeting for capitalised interest growth — the balance can grow meaningfully over a long bridging period, especially at higher rates; compounding means the growth accelerates the longer the bridging period runs.
Forgetting selling costs — agent commission and legal fees reduce your net sale proceeds, directly increasing your end debt if not accounted for; always use net (not gross) sale price in your planning.
Assuming bridging rates match standard home loan rates — bridging finance typically carries a rate premium reflecting its short-term, higher-risk nature; don't assume your existing home loan rate will apply.
Not having a contingency plan — consider what you'd do if your property genuinely doesn't sell within the bridging term, particularly for open bridging finance with a hard maximum period.
Listing the property too late — waiting until after settling on the new purchase to start marketing your existing property extends your effective bridging period unnecessarily; where possible, have your existing property on the market before or immediately after settling the new purchase.
Formula Sheet
Peak debt = Existing mortgage balance + New purchase price + Purchase costs − Cash contributed
Balance at sale (capitalised) = Peak debt compounded monthly at the bridging rate
Balance at sale (interest-only) = Peak debt (unchanged; interest paid monthly)
Net sale proceeds = Sale price − Selling costs
End debt = max(0, Balance at sale − Net sale proceeds)
Break-even sale price = Balance at sale ÷ (1 − Selling costs %)
Bridging Loan Glossary
Term
Meaning
Peak debt
The maximum combined debt during the bridging period, before your existing property sells.
End debt
The remaining debt after your existing property sells and proceeds are applied.
Bridging period
The time between settling on your new property and selling your existing one.
Capitalised interest
Interest added to the loan balance rather than paid monthly, compounding over the bridging period.
Open bridging loan
Bridging finance without a confirmed sale contract on the existing property.
Closed bridging loan
Bridging finance with an unconditional sale contract and confirmed settlement date.
Combined security
Both properties (existing and new) used together as security for the bridging loan.
Conclusion
Bridging finance can make buying before selling genuinely practical, but it comes with real, quantifiable risk — mainly around how much your existing property sells for, and how long it takes.
Use the calculator above to see your own peak debt, model different sale prices and timeframes, and understand your break-even sale price before committing. Pair it with our LVR, LMI and Refinance calculators for the complete financial picture.
A bridging loan is short-term finance that lets you buy a new property before selling your existing one, "bridging" the gap between the two transactions.
Your lender combines your existing mortgage balance with the cost of your new property into a peak debt. Interest accrues during the bridging period, then your existing property's sale proceeds reduce the balance down to your end debt, which continues as a standard mortgage.
Peak debt is the maximum combined debt during the bridging period — your existing mortgage balance plus your new property's purchase price and costs, minus any cash you contribute.
End debt is what remains after your existing property sells and the net proceeds are applied against your peak debt — this becomes your ongoing standard mortgage.
Interest is calculated on your peak debt during the bridging period, either paid monthly (interest-only, balance stays flat) or capitalised (added to the balance, compounding) — the calculator above lets you model either.
During the bridging period, yes — typically either paid monthly as interest-only or capitalised into the loan. Once your existing property sells, the end debt converts to standard Principal & Interest repayments.
This varies by lender, but commonly 6-12 months, with some extending to 18-24 months for open bridging finance — closed bridging loans (with a confirmed sale contract) are often shorter and more tightly defined.
The net sale proceeds (sale price minus selling costs) are applied against your bridging balance, reducing it to your end debt, which then continues as your ongoing standard mortgage over your remaining loan term.
Generally no — bridging finance specifically requires an existing property to "bridge" from, so it isn't typically available to first home buyers who don't already own a property.
It typically carries a higher interest rate than a standard home loan, reflecting the additional short-term risk. The total cost depends heavily on how long the bridging period lasts — see the Time-to-Sell Simulation panel above.
This depends on your combined security and your lender's maximum bridging LVR, which varies by lender — often around 80%, but policies differ. See the LVR at Peak Debt panel in the calculator above for where you stand.
Once your existing property sells and the loan converts to end debt, you can review and refinance like any standard mortgage — use our Refinance Calculator to compare options at that point.
This is a genuine risk of bridging finance — for open bridging loans, lenders typically set a maximum period, after which they may require you to reduce the price, or take other action to ensure the sale proceeds. Discuss contingencies with your lender before committing.
Bridging finance taken out without a confirmed, unconditional sale contract on your existing property — carrying more risk and uncertainty for the lender, often with stricter conditions or higher rates.
Bridging finance taken out with an unconditional contract of sale already in place on your existing property, giving the lender certainty about the settlement date — generally easier to obtain and can attract better terms.
If your existing property was an investment, interest on the relevant portion may be deductible — this is general information only, not tax advice; consult a registered tax agent about your specific situation.
This depends on your peak debt, interest rate, and bridging period length — use the calculator above for your own estimate; the Total Bridging Interest figure captures this directly.
A standard home loan is a single, ongoing loan against one property. Bridging finance temporarily combines two properties' worth of debt into a peak debt during a short transition period, before reducing to a standard end debt once the old property sells.
Depending on your lender and loan structure, you may be able to make voluntary repayments to reduce the balance, even if interest is capitalised — check with your specific lender about this option.
LVR is your peak debt measured against your combined security (both properties). Many lenders apply maximum bridging LVR limits, often around 80%, but policies vary by lender, borrower and security — see the LVR at Peak Debt panel above.
It can, if your LVR at peak debt exceeds the lender's threshold — see our dedicated LMI Calculator for a fuller breakdown of how LMI is estimated.
The minimum sale price on your existing property that would fully clear your bridging balance, leaving $0 end debt — the calculator above shows this figure directly based on your entered details.
Any surplus above your bridging balance is yours — the calculator above shows this as a surplus figure when your expected sale price exceeds your balance at sale.
It uses standard peak-debt and end-debt mechanics and has been tested against manual calculations, but actual lender terms, interest calculation methods and fees vary — confirm exact figures with your lender.
Yes — the mechanics work the same way, though tax treatment of the interest may differ; consult a registered tax agent about deductibility for your specific situation.
Typically evidence of your existing mortgage balance, a contract of sale for your new property, and (for closed bridging) a contract of sale for your existing property — confirm the exact requirements with your specific lender.
Applying for any credit product can appear on your credit file, and a bridging loan is assessed like any other lending application — normal credit reporting principles apply.
Some lenders allow extensions, subject to a fresh assessment and potentially additional fees or a higher rate — this shouldn't be assumed as automatic; discuss contingencies with your lender upfront.
It's your peak debt measured against your combined security (both properties) — it matters because many lenders apply maximum bridging LVR limits, often around 80%, and exceeding this may require LMI or additional security; policies vary by lender.
This depends on your cash flow — interest-only requires paying interest monthly out of pocket but keeps your balance flat; capitalising avoids monthly cash outflow but grows your balance over the bridging period. Compare both using the calculator above.
Commonly 2-3% of your sale price for real estate agent commission and legal/conveyancing fees — adjust the Selling Costs field in the calculator above to match your specific situation.
This is possible with some lenders, though the mechanics can be more complex, combining bridging finance with a construction loan — see our dedicated Construction Loan Calculator for the building-specific mechanics once you've settled on your new property.
Yes, the same mechanics generally apply whether your existing or new property is owner-occupied or an investment — though tax and lending policy details can differ; confirm with your lender and tax adviser.
It's typically rolled into the peak debt as part of the combined bridging loan, rather than continuing as a completely separate loan — confirm the exact structure with your lender.
As with any loan, comparing offers from multiple lenders and discussing your situation with a mortgage broker can help — bridging rates and terms vary meaningfully between lenders.
This depends on your combined security value and the lender's maximum bridging LVR — there's no fixed universal cap; it's assessed case by case based on your specific properties and financial position.
Generally yes — more months means more accrued interest, whether paid monthly or capitalised. The Time-to-Sell Simulation panel above quantifies this directly for your own numbers.
Yes, typically without penalty since bridging loans are inherently short-term products designed to be paid out once your existing property sells — confirm any specific conditions with your lender.
This is open bridging finance — available from many lenders, though typically with stricter conditions or a maximum term, since the lender carries more uncertainty about when the loan will be repaid.
Yes — lenders assess your ability to service the end debt once your existing property sells (and sometimes your ability to service both properties during bridging), similar to any standard home loan application.
Yes — the same mechanics apply whether you're upsizing or downsizing; a downsizing scenario often results in a lower peak debt and a comfortable surplus once the existing property sells, since the new purchase price is typically lower.
Bridging finance is secured against property (both your existing and new home) and structured specifically around the property sale timeline, generally offering much larger amounts at lower rates than an unsecured personal loan.
Many lenders require or recommend a formal valuation of your existing property to support the application and give a more accurate sale price estimate — ask your lender or broker whether this is required for your application.
This calculator is designed specifically for the buy-before-sell property transition scenario; renovation finance is typically a separate product — see our Construction Loan Calculator for major renovation or build scenarios.
Because capitalised interest is added to the balance each period, subsequent interest is calculated on a growing balance — over a long bridging period, this compounding effect can meaningfully increase your total bridging interest cost compared to paying interest monthly.
Yes — once your loan converts to end debt, the Amortisation Table above shows the year-by-year principal and interest breakdown for the first 10 years of your ongoing mortgage.
Yes — rerun the calculator with each lender's quoted rate and terms to compare the resulting peak debt, bridging interest and end debt side by side.
It refers to both properties — your existing property and your new purchase — being used together as security for the bridging loan, which is what allows lenders to offer a larger combined facility during the transition period.