Melbourne’s property market is dynamic — and timing is everything when you’re buying and selling. If you find your dream home before selling your current property, a bridging loan can be the solution that keeps your plans moving forward. A bridging loan gives you the short-term finance you need to secure a new property without the stress of rushing your sale. In this guide, we’ll explain how bridging loans work in Melbourne, when they’re the right fit, and why Funding is trusted by brokers and borrowers across Victoria.
What is a Bridging Loan?
A bridging loan is a short-term loan designed to help you purchase a new property before the sale of your existing one is complete.
Rather than missing out on a new opportunity, you can access the funds you need now and repay the loan once your current property sells.
Bridging loans are particularly valuable in fast-paced markets like Melbourne, where homes in desirable suburbs can sell quickly — but settlement timings don’t always line up perfectly.
How Does a Bridging Loan Work?
Here’s a simple breakdown of how a bridging loan typically works:
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Assessing Your Equity:
The lender evaluates the equity in your current home and the value of the new property. -
Approval and Funding:
Once approved, you receive the bridging funds to complete the purchase of your new property. -
Interest-Only Payments:
During the bridging term, you often only need to make interest payments, helping manage cash flow. -
Selling Your Existing Property:
You sell your current property and use the proceeds to repay the bridging loan. -
Transition to Standard Loan (If Needed):
Any remaining debt may become your standard mortgage.
Example in Melbourne: You’re selling an apartment in Southbank but discover the perfect townhouse in Northcote. A bridging loan lets you secure the new home without having to wait for your apartment sale to finalise.
When Should You Use a Bridging Loan in Melbourne?
Bridging loans can be a smart option in several Melbourne property scenarios:
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Buying Before Selling:
Avoid missing out on a rare property opportunity in competitive suburbs like Fitzroy or South Yarra. -
Fast Auction Purchases:
Melbourne’s auction culture often demands quick settlement — bridging finance can give you the upper hand. -
Upsizing:
Moving from an apartment in Richmond to a family home in Brighton? A bridging loan helps smooth the transition. -
Downsizing:
Empty nesters in suburbs like Doncaster or Kew often use bridging loans to move into more manageable homes. -
Property Renovations:
Finance improvements on your current home to maximise its sale price. -
Construction Projects:
Manage funding gaps during knockdown-rebuilds, popular across Melbourne’s eastern and bayside suburbs.
Why Choose Funding for Your Bridging Loan in Melbourne?
At Funding, we specialise in helping Melbourne buyers and sellers navigate the property market with confidence. Since 2015, we’ve earned a reputation for fast, flexible, and personalised bridging finance solutions.
Here’s why Melbourne borrowers trust Funding:
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Local Market Understanding:
We know Melbourne’s property cycles, auction timings, and settlement nuances. -
Speed Matters:
In a competitive market, Funding delivers fast approvals and flexible funding structures. -
Tailored Solutions:
Whether you’re buying in Williamstown, renovating in Glen Iris, or upsizing in Essendon, we’ll match your needs. -
Broker Support:
We’re broker-friendly and trusted by mortgage professionals across Victoria. -
Personalised Service:
Funding isn’t a “one-size-fits-all” lender — we’ll work closely with you to get the right bridging finance solution.
Whether you’re buying, selling, renovating or building, Funding is your partner for smooth, stress-free property moves in Melbourne.
Frequently Asked Questions (FAQs)
How much can I borrow with a bridging loan in Melbourne?
It depends on your available equity, new purchase price, and your broader financial profile. We’ll work with you to assess your situation.
How long does a typical bridging loan last?
Most bridging loans last between 6 and 12 months. In Melbourne’s active market, shorter terms (3–6 months) are common.
Is bridging finance available for auction purchases in Melbourne?
Yes — bridging loans are often used to help Melbourne buyers meet quick settlement timelines after winning at auction.
What happens if my property doesn’t sell on time?
It’s important to have a strong sale strategy. Funding helps you prepare and ensures clear expectations are set from the beginning.
Can I get a bridging loan for renovations before selling?
Absolutely — a bridging loan can fund pre-sale improvements to boost your property’s value.
Ready to Bridge the Gap?
Buying your next home shouldn’t mean missing out on opportunities.
Talk to Melbourne’s bridging loan specialists at Funding today.
Let’s make your next move happen — the smart way.
