A Concord couple in a three-bedroom house they've owned for eleven years find the forever home two suburbs over, going to auction in nineteen days.
Yes, with bridging finance arranged before auction day. The bridging loan covers both properties until the current one sells, often with interest added to the loan, and the lender assesses the end debt after the sale.
The bid limit has to allow for a slower or lower sale.
Part of the complex lending guide.
How much equity could you use?
For upgraders and investors, how much of your home could work as a deposit.
That usable equity could work as a deposit on an investment property or renovation, structured so your properties aren’t tied together unnecessarily.
Usable equity assumes lending to 80% of your home’s value against your current loan. Lender policy and serviceability decide the real figure.
Confirm your numbers.
I honestly couldn’t recommend Links Property Finance and Charles highly enough. After speaking with others who weren’t able to help me, Charles went above and beyond to understand my situation…
Charles and the team recently assisted me with the refinance of my investment property.
Charles went above and beyond to help us secure our home loan. He worked hard to find the best option for us and kept us updated throughout the whole process. His knowledge of the lending market was impressive and he made everything straightforward.
Charles Touma, Mortgage Broker.
The sequencing trap. Sell first and rent: two moves, storage, and a market that can run away between transactions. Buy first with nothing in place: an unconditional auction contract with a 10% deposit at stake and no funding certainty behind it.
Neither is acceptable, and the auction date will not move.
Time, valuation and honesty about the sale price. Bridging approval inside three weeks needs valuations on both properties, fast document turnaround, and a lender whose bridging process is quick.
The structure stands on a conservative estimate of what the current home will fetch, an optimistic guess builds the whole bridge on sand. And peak debt is real: for a period, the couple owes against both properties, with interest typically capitalising on the bridge.
Both valuations, ordered day one. The end-debt position: once the current home sells at the conservative figure, does the remaining loan service comfortably on their income? The peak-debt exposure and the capitalised interest if the sale takes six months rather than three.
The auction ceiling: bridging approved to a maximum bid, so auction adrenaline has a hard number around it. And the fallback: what the position looks like if the sale drags, covered in our bridging guide, including when bridging should not be used.
Mainly the cost and the sale: bridging costs more while it runs and rests on one assumption, the sale. It suits this file because the equity is deep, the end debt services easily, and the current home sits in a liquid market.
It would not suit a thin-equity position, a hard-to-sell property, or owners who would be forced sellers if the market went quiet, in those files, selling first with a long settlement, or a subject-to-sale purchase outside auction conditions, is the more accurate answer.
If the right house is going to auction before yours has sold, the time to structure is the day you decide to bid, not the week of the auction. Get the conservative sale estimate from evidence, not hope.
Know your bid ceiling before the auctioneer knows your face. And treat bridging as a tool with a clock on it, the exit plan is the loan.
The lender carries both properties for a limited period: your existing home and the new purchase. You buy first, sell second, and the debt reduces to an ordinary loan once the sale settles. Bridging loans explains the structure.
Time. The bridging period is finite, and a slow sale compresses your negotiating position. The structure is planned around a realistic sale price and timeline before you bid, not after.
No, and the ones that do assess it differently, including how they treat interest during the bridge. That is a lender-selection question before it is a rate question.
Thirty minutes with Charles, today if the clock is running: whether bridging fits your equity and end debt, and the ceiling you can bid to with certainty.
Prefer a callback?Charles calls back within one business day. No documents needed yet.
This is an illustrative example scenario, not a description of a specific client and not a testimonial. The figures are realistic but rounded, no lender is named, and no outcome is promised, every application is assessed on its own facts. General information only, not credit or financial advice.
