You’ve found your next home, but your current property hasn’t sold yet. That timing gap doesn’t have to cost you the purchase. Bridging loans let you buy your next property immediately, using the equity in your existing home as security, while you wait for your current sale to settle.
The right bridging finance structure can keep you competitive in a fast-moving market. Whether you’re upgrading in Burleigh Heads – Varsity Lakes or Robina, bridging finance gives you the certainty to make unconditional offers when the right property comes up.
Mortgage Innovations helps Gold Coast homeowners work through their bridging loan options across 60+ lenders, completely free of charge.
Here’s what you need to know about bridging finance on the Gold Coast before approaching a lender.
Key takeaways
- Bridging loans combine both property debts into one loan for up to 12 months.
- You need at least 20% equity across both properties combined to qualify.
- Open and closed bridging structures carry different costs and flexibility.
How does a bridging loan work?
A bridging loan lets you buy your next property before your current one sells, by temporarily combining both debts into a single loan. You make interest-only repayments during the bridging period, typically up to 12 months, and the loan reduces once your existing property settles. Your exact structure depends on your equity, timeline, and which lender you use, which is exactly what we work through with you in a free consultation.
What should Gold Coast buyers know about bridging loan costs and structure?
Bridging loan rates typically sit 1-2% above standard variable home loan rates, so approximately 6.70-7.70% p.a. based on current market rates. The total interest cost depends on how long your existing property takes to sell, which is why most borrowers aim to have their existing home under contract before drawing down the bridging loan.
There are two structures to understand. Open bridging (where your existing property is not yet under contract) costs more but gives you flexibility to buy first and list afterwards. Closed bridging (where you have an accepted offer on your existing property) is cheaper because the lender has a committed exit timeline. Choosing the wrong structure for your situation can cost thousands in unnecessary interest.
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How do mortgage brokers help Gold Coast buyers get bridging loan approval?
Step 1: Talk to us
Get in touch and we’ll assess whether bridging finance suits your situation and what options are available across our 60+ lender panel.
Step 2: Get your current property valued
We arrange valuations on both your existing property and the one you’re buying. This determines your available equity and maximum borrowing capacity.
Step 3: Structure the loan correctly
We identify whether you need open or closed bridging finance, and structure the loan to minimise interest costs and exit fees when your existing property sells.
Step 4: Submit to the right lender
Bridging loan policies vary significantly between lenders. We match your situation to lenders who understand your timeline and property types.
Step 5: Coordinate both settlements
We work with your solicitor to ensure the bridging loan settles on your new purchase, and that the loan structure allows a smooth exit when your existing property sells.
Step 6: Monitor the sale progress
Throughout the bridging period, we stay in touch about your existing property sale and can refinance or restructure if market conditions change.
What mistakes do Gold Coast buyers make with bridging loans?
The biggest mistake is waiting until you’ve found your next property before exploring bridging options. Understanding your equity position and bridging capacity before you start looking gives you confidence to make competitive offers when the right property appears.
The second common error is choosing the wrong bridging structure. Open bridging (where your existing property isn’t under contract) costs more but gives you flexibility. Closed bridging (where you have an accepted offer on your existing property) is cheaper but requires a committed sale timeline. Getting this decision wrong can cost thousands in unnecessary interest.
How much equity do you need for bridging finance on the Gold Coast?
Most lenders require at least 20% genuine savings or equity across both properties combined. In practice, this means if you’re buying a $1,000,000 property and your existing home is worth $800,000 with a $400,000 mortgage remaining, your $400,000 equity plus any additional savings must cover the 20% deposit requirement on the new purchase.
The stronger your equity position, the more lenders will compete for your business. If you own your existing property outright or have significant equity, bridging finance becomes much more accessible and affordable. Use our borrowing power calculator to get a sense of where you stand before speaking with us.
Up to 12 months
Standard maximum bridging period most lenders allow, with some extending to 24 months in certain circumstances.
What should Gold Coast buyers watch for when the sale takes longer than expected?
If your existing property doesn’t sell within the bridging period, most lenders will consider an extension where you can demonstrate genuine marketing efforts and reasonable pricing. The alternative is refinancing to a standard investment loan on your existing property alongside a separate loan on your new home. Neither outcome is ideal, which is why getting the timeline and structure right from day one matters. A broker who tracks your sale progress throughout the bridging period can flag these scenarios early and give you options before they become urgent.
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Like to know which banks & lenders work best for bridging finance? Know where you really stand and what’s possible, so you can plan with total confidence. 5.0 on Google Local experts Free service
Prefer to talk now? Call 07 5535 5882 |
Frequently Asked Questions
How long can I keep a bridging loan on the Gold Coast?
Most lenders allow up to 12 months, though some extend to 24 months if your existing property is taking longer to sell. The longer the bridging period, the higher the interest cost, so most borrowers aim to sell within 6 months.
What interest rate do bridging loans charge?
Bridging loan rates typically sit 1-2% above standard variable home loan rates, so approximately 6.70-7.70% p.a. based on current market rates. You pay interest-only during the bridging period, which keeps monthly repayments manageable.
Can I get bridging finance if my existing property isn’t on the market yet?
Yes, this is called open bridging finance. It costs more than closed bridging (where your existing property is already under contract) but gives you flexibility to buy first and list your existing property afterwards.
What happens if my existing property doesn’t sell within the bridging period?
Most lenders will extend the bridging period if you can demonstrate genuine marketing efforts and reasonable pricing. The alternative is refinancing to a standard investment loan on your existing property and a separate loan on your new home.
Do I need to pay LMI on a bridging loan?
Only if your total borrowing across both properties exceeds 80% of their combined value. If you have sufficient equity, LMI isn’t required, but this varies significantly between lenders and property values.
Should I use a broker or go to my bank for bridging finance on the Gold Coast?
A mortgage broker, every time. Bridging loan policies vary dramatically between lenders: some don’t offer them at all, others have different structures, rates, and exit fees. A broker comparison ensures you get the most suitable option for your timeline and properties.
What happens to my bridging loan when my existing property sells?
The sale proceeds automatically reduce the bridging loan balance. Any remaining debt converts to a standard home loan on your new property. Most lenders handle this process seamlessly through your solicitor at settlement.
Your Next Steps
Your move to a new property deserves more than timing stress and missed opportunities. The right bridging loan structure gives you confidence to secure your next home without the pressure of perfect sale timing, and lender choice determines both your approval chances and your total cost.
The right lender for bridging finance depends on your situation, and that’s a conversation worth having. Talk to the Mortgage Innovations team or call 07 5535 5882, and we’ll compare your options across 60+ lenders at no cost to you.
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Arranging finance can be stressful, especially with some lenders now taking extra steps including going through your living expenses and credit scoring (ouch!). And sometimes banks can make you feel like ‘just a number’. That’s why we want to do things differently: because you deserve better.
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