Eternity Group

Finance — Bridging

Bridging Finance

Bridging finance for buying a new home before the existing one sells — scoped honestly against peak debt, the bridging period, capitalised interest and end-debt servicing. Bridging is higher-risk and is not suitable for everyone; lender policy and valuations apply, and any approval depends on the lender assessment.

Book a Bridging Finance Scoping CallSee Our Process
  • Closed bridge
  • Open bridge
  • Peak debt modelling
  • End-debt servicing
  • Worst-case stress test

Mr Rohan Manokaran (Credit Representative 565110) is authorised under Australian Credit Licence 561324 held by Loans Only Pty Ltd. Information on this page is general in nature and does not take into account your objectives, financial situation or needs. Credit eligibility, lender criteria, fees and charges apply.

What we scope

The honest shape of a bridging arrangement.

A bridge is a short-term structure with real risk, so we scope it carefully before any lender is approached. The categories below are the moving parts that decide whether a bridge is viable — and when it is not the answer.

Closed bridge

Sale already exchanged · timing known

When you have already exchanged contracts on your existing home, the sale date and net proceeds are reasonably certain. Lenders generally treat this as the lower-risk path because peak debt has a defined end point. We confirm the unconditional sale and the settlement gap before scoping the bridge.

Open bridge

Not yet sold · timing and price unknown

When the existing property is not yet sold or even listed, the sale timing and price are unknown. Open bridges attract tighter lender policy, a lower loan-to-value ratio and a documented sale strategy. We are deliberately conservative here because the uncertainty falls on you, not the lender.

Peak debt & capitalised interest

Total exposure · interest compounding

Peak debt is the full amount owed across both properties during the bridge, plus interest that capitalises onto the balance each month. We model peak debt first under a quick sale and a delayed sale, so the compounding cost of holding two homes is visible before you commit, not after.

End debt & servicing

Residual loan · ordinary mortgage going forward

Once the existing property sells, net proceeds reduce peak debt to the end debt — the loan you service from income from then on. We assess end-debt servicing against the APRA buffer the same way as any home loan, because a bridge can only proceed if the end position is comfortable.

Valuations & timing

Both properties · sale and settlement gap

A bridge needs a registered valuation on both the property you are buying and the one you are selling, because the lender sizes peak debt and the bridging period against both. The settlement gap, the sale campaign timeline and any cooling-off periods all feed the model and are confirmed in writing.

When bridging is NOT the answer

Thin equity · uncertain sale · marginal servicing

Where the equity buffer is thin, the sale timing is genuinely uncertain, or the end debt is not comfortably serviceable, a bridge adds risk rather than removing it. In those cases we say so in writing and scope alternatives — a longer settlement, a deposit bond, or selling first — before any application.

Process

From scoping call to end-debt settlement — a risk-first sequence.

A bridge moves at the pace of your sale campaign and lender policy. The steps below are the rhythm we follow — every assumption and worst-case figure is confirmed in writing before you commit.

Scoping call

The property you want to buy, the one you are selling, your equity, your income and the timing gap. We confirm whether a bridge is the right structure — or whether a longer settlement or sell-first plan fits better — before going further.

Peak-debt model

We model peak debt across both properties under a quick sale and a delayed sale, including capitalised interest. You see the worst-case holding cost, not just the optimistic case, before any lender is approached.

End-debt servicing check

We assess whether you can comfortably service the residual end debt as an ordinary mortgage, against the APRA buffer and your other commitments. If the end position is not comfortable, the bridge does not proceed.

Closed vs open decision

We confirm whether your sale is exchanged (closed bridge) or still to come (open bridge), shortlist the lenders whose policy fits, and document the structure, the bridging period and indicative costs in writing.

Lender application

Application submitted to the shortlisted lender with valuations ordered on both properties. The lender applies its own credit and policy assessment. We track and report progress at each milestone.

Settlement & sale completion

The bridge funds the new purchase. When the existing property sells, net proceeds reduce peak debt to the end debt. Loan-account details and the end-debt position are confirmed in writing.

Frequently asked questions

Bridging finance — common questions.

Peak debt is the total amount you owe during the bridging period — the balance still outstanding on your existing home plus the full new purchase price, fees and capitalised interest, before the old property has sold. It is the highest exposure you carry at any point, and the lender assesses the whole figure, not just the end position. If peak debt sits too high against the combined value of both properties, the lender may decline, reduce the loan or require a larger contribution. We model peak debt first because it is the number that most often determines whether a bridge is viable at all.

How we are paid

How we are paid: Eternity Mortgage Solutions typically receives commissions from the lender for loans arranged on your behalf. A full explanation of how we are paid, our lender panel and any potential conflicts of interest is provided in our Credit Guide and Credit Proposal Disclosure document, available on request before any loan application is submitted.

Related

Where this fits in the bigger picture

A bridge rarely sits in isolation. The end debt becomes a standard home loan, the existing facility may be refinanced, and pre-approval on the purchase often runs alongside.