Selling your current home while buying your next can feel like a juggling act — especially if the timing doesn’t quite line up. That’s where a bridging loan can make all the difference.
At Gardian Finance, we often help clients in this exact situation. Whether you’ve found your dream home before selling your current one, or need a little extra time to finalise your sale, a bridging loan can help you make the move with less stress and more confidence.
What Is a Bridging Loan?
A bridging loan is a short-term finance option that “bridges the gap” between buying your new property and selling your existing one.
It allows you to own both properties temporarily, giving you time to sell without rushing — and without missing out on your next home.
Essentially, the lender combines your current mortgage with the purchase amount for the new property into one short-term loan. Once your old home sells, the proceeds are used to reduce the debt, and you transition to a standard home loan.
How Bridging Loans Work
Here’s a simple example:
You still owe $300,000 on your current home.
You’ve found your next home for $700,000.
The lender gives you a bridging loan for $1 million, covering both the old loan and the new purchase.
Once your first home sells — say for $500,000 — that amount goes straight towards paying off part of the loan, leaving you with a new mortgage for the remaining $500,000.
Bridging loans are typically short-term (6 to 12 months) and can be structured as interest-only, helping ease the financial pressure during the transition.
The Benefits of a Bridging Loan
✅ Buy your new home first: You won’t have to wait for your existing property to sell before making an offer.
âś… Avoid temporary rentals: No need to move twice or find short-term accommodation between sales.
âś… Less pressure to sell quickly: You can hold out for the best sale price on your current property.
âś… Simplified repayment structure: Interest is often only charged on the amount you actually use.
For many homeowners, bridging finance creates flexibility and peace of mind — especially in a competitive property market like Mackay.
Things to Keep in Mind
While bridging loans can be a great solution, it’s important to plan carefully.
🔹 Higher short-term costs: You may be paying interest on a larger combined loan until your property sells.
🔹 Valuation and timing: The lender will need accurate valuations of both properties to determine your borrowing power.
🔹 Exit strategy: You’ll need a clear plan for selling your current home within the agreed timeframe (usually 6–12 months).
That’s why it’s essential to work with an experienced mortgage broker who can structure your bridging loan the right way — and ensure it fits your financial situation.
How Gardian Finance Can Help
At Gardian Finance, we help take the stress out of the process by:
🏡 Assessing your financial position and timing goals
đź’° Comparing bridging loan options across multiple lenders
🧠Structuring your loan to manage repayments efficiently
🤝 Guiding you through settlement and transition
Whether you’re upgrading, downsizing, or relocating, our team can help you move seamlessly from one home to the next — without the financial strain.
Make Your Move with Confidence
Buying and selling at the same time doesn’t have to be stressful. With the right advice and the right loan, you can make your next move smoothly and strategically.
Ready to explore your bridging loan options? Talk to our friendly team today.
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(07) 4953 2799đź’»
www.gardian.com.auđź“Ť
73 Wood St, Mackay
