Bridging Loan
Variable rate
Comparison rate*
Why choose a Bridging Loan?
Buy before you sell
No renting in-between
Pay off your loan sooner
Easier on your cashflow
The home loan features don't stop there
- A variable interest rate designed for short-term lending.
- Six-month loan terms for property purchases and 12-month loan terms for construction loans.
- Borrow up to 80% of the combined property values.
- No repayments are required to the Bridging Loan during the loan term, although you can make repayments at any time.
- No ongoing fees during the loan term.
How a bridging loan works
A bridging loan is a short-term loan (available for six or 12 months) that can help you buy a new property before selling your current one.
It’s designed to bridge the gap between paying for your new home and receiving the sale proceeds from your existing property, giving you more flexibility between buying and selling. It can also allow you make an offer without a subject-to-sale condition, which may strengthen your position in a competitive property market.
During the loan term, your existing property is used as security, and interest is charged on the combined (existing and new) loan balances. No repayments are required on the bridging portion of the loan during the loan term. Depending on your loan structure, repayments may still apply on other home loans.
Once your existing property is sold, the money from the sale is used to pay out the bridging loan.
When a bridging loan could be helpful
Every situation is different. Whether you're moving to a smaller home or upgrading to a larger one, a bridging loan can help make the transition between properties easier.
You’ve found a smaller home that’s easier to maintain, but you’d like the flexibility to move before selling your current property.
A bridging loan can help you purchase your next home first and move at your own pace, without feeling pressured to sell in a hurry.
Because the expected sale price of your current property is more than the cost of your new one, you expect the money from the sale to be enough to repay the bridging loan in full once it’s sold.
You've found a larger home better suited to your needs, but you haven't sold your current property yet.
A bridging loan can help you secure your next home before selling your existing one, giving you more time to move, prepare your home for sale, and avoid the stress of finding a temporary place to live.
If your next home costs more than the expected sale price of your current property, the money from the sale will be used to repay the bridging loan in full. Any amount still owing will continue as a standard home loan.
Rates and fees
The basics
| Loan purpose | Owner occupier |
| Minimum loan amount | $20,000 |
| Maximum loan term | |
| For purchases | Six months |
| For construction | 12 months |
| Maximum LVR (includes LMI) | 80% |
Interest rates
| Loan to Value Ratio (LVR) | Variable rate |
Comparison rate*
|
|---|---|---|
| Up to 80% | 9.76% p.a. | 9.79% p.a. |
| Fee type | |
|---|---|
| Monthly fee | $0.00 |
| Annual fee | $0.00 |
| Document preparation fee | $300.00 |
Other fees & charges that apply to all of our accounts can be found on our fees and charges page.
How much could you borrow?
Use our handy home loan borrowing power calculator to get an idea of much you could potentially borrow. We’ll just need the basics about what you earn, spend, and owe, and we’ll figure out the rest.
Home loan borrowing power calculator
More calculators
Ready to apply for a home loan?
Every home loan is different. That’s why our Home Loan Specialists are here to help you understand your options, find a loan that’s right for you, and guide you through the application process.
You can apply:
- At home or at work – our mobile lending team can come to you, or you can book a call with one of our virtual lenders.
- At your local branch – make an appointment at your nearest branch – don’t forget to bring your ID and supporting documents with you.
- Over the phone – call us on 13 25 77 and one of our friendly Home Loan Specialists will help you with your application.
To help make the application process smoother, have the following information ready:
- Identification documents
- primary photo ID (such as a passport or driver’s licence), or
- primary ID without a photo (such as a birth certificate or citizenship certificate) and secondary ID (such as a utility bill showing your name and address)
Find out what other identification documents we accept.
- Employment details – contact details for your current employer and previous employer if you’ve changed jobs within the last two years.
- Income details – recent payslips or, if you’re self-employed, tax assessments and financial statements for the past two years.
- Regular expenses – such as food, rent, utilities, insurance, and medical costs.
- Assets – details of any assets you own, including vehicles, savings, home contents, properties, or investments.
- Liabilities – details of any loans, credit cards, buy now pay later services, or other debts.
- New property details – information about the property you’re purchasing.
- Existing property sale details – if you’re purchasing an established property, we’ll need confirmation from your real estate agent that your current property is on the market before you buy a new home. We don’t need this until you’re ready to buy.
Every home loan is different. That’s why our Home Loan Specialists are here to help you understand your options, find a loan that’s right for you, and guide you through the application process.
You can apply:
- At home or at work – our mobile lending team can come to you, or you can book a call with one of our virtual lenders.
- At your local branch – make an appointment at your nearest branch – don’t forget to bring your ID and supporting documents with you.
- Over the phone – call us on 13 25 77 and one of our friendly Home Loan Specialists will help you with your application.
Got a question about bridging loans?
A bridging loan may help if you’ve found your next property before selling your current home and need more flexibility between buying and selling.
Buying a property involves more than just the purchase price. Depending on your situation, you may also need to budget for costs such as stamp duty, building and pest inspections, strata fees, transfer fees, and council rates.
Our home buying and selling cost calculator can help you estimate the costs involved.
Yes. Lots of people buy a new property before selling their current home, particularly in a competitive property market.
A bridging loan can help provide more flexibility between buying and selling, so you’re not relying on both properties settling at the same time.
If you'd like to discuss your options, contact us on 1300 228 228 or book an appointment with a Home Loan Specialist.
There can be a range of costs involved when selling a property, including real estate agent fees, advertising costs, conveyancing fees, and settlement costs.
Our home buying and selling cost calculator can help you estimate the total costs involved.
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Important information
Banking and Credit products issued by Police & Nurses Limited (BCU Bank).
Any information on this website is general in nature and does not consider your personal needs, objectives or financial situation. Our rates are current as of today and can change at any time. Eligibility criteria, terms and conditions, fees and charges apply.
Please consider the terms and conditions and whether a product is right for you.
- View the home loans terms and conditions
- View the home loan fees and charges
- View Credit Guide
- Create a Home Loan Key Fact Sheet
- View LMI Information Fact Sheet
- View Target Market Determinations (TMDs)
*Comparison rate calculated on a loan amount of $150,000 over a term of 25 years based on monthly repayments. For variable Interest Only loans, comparison rates are based on an initial 3 year Interest Only period. For fixed Interest Only loans, comparison rates are based on an initial Interest Only period equal in length to the fixed period. During an Interest Only period, your Interest Only payments will not reduce your loan balance. This may mean you pay more interest over the life of the loan.
WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.