Sydney’s property market moves fast — and if you find your dream home before selling your current property, a bridging loan can make all the difference. A bridging loan gives you the short-term finance you need to secure a new home, manage settlement timing, or fund a renovation project.
In this guide, we’ll explain exactly how bridging loans work in Sydney, when you might need one, and why Funding is trusted by brokers and borrowers across New South Wales.
What is a Bridging Loan?
A bridging loan is a short-term loan designed to “bridge the gap” between buying a new property and selling your existing one.
Rather than missing out on an opportunity, a bridging loan gives you the flexibility to buy your next home before your current property has sold — a huge advantage in a competitive market like Sydney.
In simple terms: You borrow the funds you need to complete your purchase while using the value of your existing property as security. Once your old property sells, you repay the bridging loan — often in full.
Bridging loans are popular in fast-moving cities like Sydney, where timing can be everything.
How Does a Bridging Loan Work?
Here’s a simple step-by-step breakdown of how bridging loans typically work:
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Assessment of Equity:
The lender assesses the equity in your current property and the value of the new property you wish to purchase. -
Approval and Funding:
Once approved, the lender provides you with the funds needed to settle on your new property. -
Interest-Only Period:
During the bridging period, you may only need to make interest payments on the loan. -
Property Sale:
You sell your existing property. -
Loan Repayment:
The proceeds from your sale are used to pay down the bridging loan. Any remaining balance becomes your standard home loan (if applicable).
Example in Sydney: Suppose you’re selling a home in the Eastern Suburbs but find a perfect upgrade in the Inner West. Rather than losing the new property, a bridging loan lets you secure it while your Eastern Suburbs home is still on the market.
When Should You Use a Bridging Loan in Sydney?
There are several situations where a bridging loan makes sense — particularly in a high-demand, dynamic market like Sydney:
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Buying Before Selling:
Avoid missing out on your ideal property because you haven’t sold yet. -
Auction Purchases:
Sydney auctions often require fast settlement — a bridging loan gives you financial flexibility. -
Upgrading to a Larger Home:
Especially common for growing families in suburbs like the North Shore, Inner West, or Northern Beaches. -
Downsizing:
Empty nesters selling large family homes in suburbs like Baulkham Hills or Mosman often use bridging finance to secure a smaller property first. -
Property Renovations:
Fund upgrades on your current property to maximise sale price before listing it on the market. -
Construction Projects:
Bridge the finance gap during knockdown-rebuild projects, popular in many Sydney suburbs.
Tip: Sydney’s property cycles are seasonal — understanding timing can help you use bridging loans most effectively.
Why Choose Funding for Your Bridging Loan in Sydney?
Since 2015, Funding has been trusted by brokers, borrowers and property buyers across Sydney and Australia for one simple reason:
We make bridging finance simple, fast, and stress-free.
When you partner with Funding, you’ll benefit from:
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Local Expertise:
We understand Sydney’s fast-moving property market — from the competitive Eastern Suburbs to family hubs in Western Sydney. -
Fast Approvals:
We move as fast as you do, helping you settle quickly and competitively. -
Flexible Terms:
Every borrower’s situation is different — we tailor your bridging loan to suit your timing and needs. -
Broker-Friendly Processes:
If you’re a broker working with Sydney buyers, Funding is your partner for success. -
Personalised Service:
You’re not just another number — we work closely with you to navigate your bridging journey confidently.
Whether you’re buying, building, or renovating in Sydney, Funding is here to help you move forward faster — without the stress.
Frequently Asked Questions (FAQs)
How much can I borrow with a bridging loan in Sydney?
It depends on your current property value, new property price, and your overall financial profile. Most bridging loans are based on your available equity.
How long do bridging loans usually last?
Typically between 1–36 months. In Sydney’s market, shorter bridging periods (3–6 months) are common due to quicker sale times.
Can I get a bridging loan if my property hasn’t sold yet?
Yes — that’s exactly what a bridging loan is for! It gives you the financial flexibility to buy first.
Are bridging loans only for residential properties?
No — bridging loans can also be used for investment properties, renovations, or even construction projects.
What happens if my property takes longer to sell?
It’s important to have a clear plan. At Funding, we’ll work with you to assess realistic timelines and help you manage potential risks.
Ready to Move Forward Faster?
If you’re ready to secure your next property with confidence, talk to Sydney’s bridging loan specialists at Funding today.
Let’s make your next move happen.
