Bridge the gap with ease
Fast and flexible bridging loans to support your next move
“SBS Lending makes the move stress-free with flexible bridging loans. Secure your dream home now and sell on your timeline — call us today.”
FAQS
Frequently Asked Questions
Q: What is a bridging loan?
A: A bridging loan is a short-term loan designed to “bridge the gap” between the purchase of a new property and the sale of your existing one. It allows you to buy your new home without having to sell your current one first, which is a major advantage in a fast-moving market like Sydney, as it allows you to act quickly and secure your next property.
Q: How long does a bridging loan last?
A: Bridging loans are short-term, typically with a maximum term of 6 to 12 months. The expectation is that you will sell your existing property within this timeframe and use the proceeds to pay off the bridging loan.
Q: How do repayments work on a bridging loan?
A: There are generally two types of repayment structures. The most common is an “interest-only” period where you don’t have to make any principal repayments while you’re waiting for your current home to sell. The interest is often “capitalised,” meaning it’s added to the total loan amount. Once your old property sells, the proceeds are used to pay off the entire bridging loan, and you are left with a new, standard home loan for your new property.
Q: What are the risks of a bridging loan in the Sydney market?
A: While bridging loans offer flexibility, they also have risks. The main risk is that your existing property may not sell within the expected timeframe or for the price you anticipated. This could leave you with a larger-than-expected “end debt” and more interest costs, putting financial pressure on you to manage two loans simultaneously. It’s crucial to have a clear and realistic valuation of your current property before you commit.