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Bridging Finance
Bridging Finance: what it costs, how it works, and who it is not for. Every figure carries the source it came from and the date it was read.
What is bridging finance, and who is it for?
FIRSTMAC - BRIDGE CRITERIA, COMPLETE: minimum Equifax score 700 for the PRIMARY borrower (defined as the borrower with the highest income - so the test attaches to a specific person, not the application). The NEW property must be OWNER OCCUPIED; the property being sold may be owner-occupied or inves Money Brain publishes the document and the date behind every line on this page, and states plainly where a position has not been read.
How current is this page?
Every figure on this page carries the source it came from and the date it was read. Where a lender-by-lender position has not been read at source, the page says so rather than repeating something from memory. Lender policy changes quietly and often.
What decides your answer
What bridging finance is, in one paragraph
FIRSTMAC - BRIDGE CRITERIA, COMPLETE: minimum Equifax score 700 for the PRIMARY borrower (defined as the borrower with the highest income - so the test attaches to a specific person, not the application). The NEW property must be OWNER OCCUPIED; the property being sold may be owner-occupied or investment. Maximum LVR 80% on PEAK DEBT and 80% on END DEBT with the 20% haircut applied. Maximum peak debt $3.0M, reverting
Closed and open bridging - the difference that matters
FIRSTMAC - STRUCTURE: mortgages are taken over BOTH properties at the start, and any existing debt on the property being sold MUST BE REFINANCED TO FIRSTMAC and settle simultaneously with the purchase. A borrower who wants to keep their existing lender cannot bridge here. The bridge period must be chosen at the outset and can only be 6 OR 12 MONTHS - there is no other option and no extension named. Where there is an
Peak debt and end debt, worked through
FIRSTMAC - HOW THE MONEY ACTUALLY BEHAVES, AND THIS IS THE PART BORROWERS GET WRONG: the rate is FIXED during the bridge and reverts to variable after. There is an upfront fee, capitalised, AND IT IS NOT REFUNDABLE IF THE BRIDGE ENDS WITHIN THE FIRST 3 MONTHS - selling quickly does not get the fee back. Interest for months 4-6 is capitalised, which is what creates the peak debt at the end of month 6, and NO MONTHLY R
What decides your answer
What it costs while both loans are running
FIRSTMAC - BRIDGE CRITERIA, COMPLETE: minimum Equifax score 700 for the PRIMARY borrower (defined as the borrower with the highest income - so the test attaches to a specific person, not the application). The NEW property must be OWNER OCCUPIED; the property being sold may be owner-occupied or investment. Maximum LVR 80% on PEAK DEBT and 80% on END DEBT with the 20% haircut applied. Maximum peak debt $3.0M, reverting
How long you get, and what happens at the end
FIRSTMAC - STRUCTURE: mortgages are taken over BOTH properties at the start, and any existing debt on the property being sold MUST BE REFINANCED TO FIRSTMAC and settle simultaneously with the purchase. A borrower who wants to keep their existing lender cannot bridge here. The bridge period must be chosen at the outset and can only be 6 OR 12 MONTHS - there is no other option and no extension named. Where there is an
If the old place does not sell
FIRSTMAC - HOW THE MONEY ACTUALLY BEHAVES, AND THIS IS THE PART BORROWERS GET WRONG: the rate is FIXED during the bridge and reverts to variable after. There is an upfront fee, capitalised, AND IT IS NOT REFUNDABLE IF THE BRIDGE ENDS WITHIN THE FIRST 3 MONTHS - selling quickly does not get the fee back. Interest for months 4-6 is capitalised, which is what creates the peak debt at the end of month 6, and NO MONTHLY R
What decides your answer
Selling first, buying first, or bridging
FIRSTMAC - BRIDGE CRITERIA, COMPLETE: minimum Equifax score 700 for the PRIMARY borrower (defined as the borrower with the highest income - so the test attaches to a specific person, not the application). The NEW property must be OWNER OCCUPIED; the property being sold may be owner-occupied or investment. Maximum LVR 80% on PEAK DEBT and 80% on END DEBT with the 20% haircut applied. Maximum peak debt $3.0M, reverting
Which lenders offer bridging, and on what terms
FIRSTMAC - STRUCTURE: mortgages are taken over BOTH properties at the start, and any existing debt on the property being sold MUST BE REFINANCED TO FIRSTMAC and settle simultaneously with the purchase. A borrower who wants to keep their existing lender cannot bridge here. The bridge period must be chosen at the outset and can only be 6 OR 12 MONTHS - there is no other option and no extension named. Where there is an
What they want to see before approving
FIRSTMAC - HOW THE MONEY ACTUALLY BEHAVES, AND THIS IS THE PART BORROWERS GET WRONG: the rate is FIXED during the bridge and reverts to variable after. There is an upfront fee, capitalised, AND IT IS NOT REFUNDABLE IF THE BRIDGE ENDS WITHIN THE FIRST 3 MONTHS - selling quickly does not get the fee back. Interest for months 4-6 is capitalised, which is what creates the peak debt at the end of month 6, and NO MONTHLY R
Questions
FIRSTMAC - HOW THE MONEY ACTUALLY BEHAVES, AND THIS IS THE PART BORROWERS GET WRONG: the rate is FIXED during the bridge and reverts to variable after. There is an upfront fee, capitalised, AND IT IS NOT REFUNDABLE IF THE BRIDGE ENDS WITHIN THE FIRST 3 MONTHS - selling quickly does not get the fee back. Interest for months 4-6 is capitalised, which is what creates the peak debt at the end of month
Sources and check dates
Lender lines on this page come from data the panel documents carry, read on 2026-08-09. Anything not read at source is named as unpublished.
Who wrote this page
Darren Parker, Credit Representative 501592, authorised under Australian Credit Licence 389328. Every figure here was read at source and dated. If a lender's position has changed since the date shown, tell him and it is corrected.
See where you stand before you decide anything
Updated 13 September 2026