True wellbeing begins at home.
Bridging Loan Calculator
Estimate the cost of bridging finance when buying before selling. See your peak debt, monthly interest and total bridging cost in seconds.
Tell us about your current property
Tell us about the property you want to buy
How long will the bridge last?
| Month | Interest this month | Cumulative cost |
|---|
Understanding bridging finance
A bridging loan lets you purchase your next property before your existing home has sold. During the bridging period, you hold both properties and owe on both - your existing mortgage continues while a new loan covers the purchase price of the new property. The combined total is your peak debt, and it is the main driver of cost. Most lenders capitalise the interest during the bridge, meaning it accrues and is settled from the sale proceeds rather than requiring monthly repayments.
The cost of bridging finance comes down to three things: the size of your peak debt, the interest rate, and how long the bridge lasts. Every additional month on bridge adds another month of interest on the full peak debt, so a fast sale matters. On a peak debt of $1M at 7.5%, a one-month extension costs an extra $6,250. Lendology models these scenarios with you before you make an offer, so you know exactly what you are committing to and can plan accordingly.
Bridging finance is not suitable for every situation. If the peak debt represents a high proportion of your combined property values, or if the expected sale timeline is uncertain, there may be better strategies. Talk to Jason or Steve about your specific situation - we can model the numbers across multiple lenders and compare bridging against alternatives like selling first or using a deposit bond. You can also read more on our bridging loans page.
Frequently asked questions
What is a bridging loan and how does it work?
A bridging loan is a short-term loan that lets you buy your next property before your current home has sold. During the bridging period, you hold both properties. Your existing mortgage continues, and a new loan covers the new purchase price. The combined amount is your peak debt. Most lenders capitalise the interest during the bridge - it accrues and is repaid from the proceeds when your current property sells, so you generally do not need to make separate repayments during the bridge.
How much does bridging finance cost?
Bridging loan costs depend on the size of your peak debt, the interest rate, and how long the bridge lasts. On a peak debt of $1 million at 7.5%, monthly interest is around $6,250. Over a 6-month bridge, total interest is approximately $37,500. Rates typically run slightly higher than standard variable rates. Lendology models the exact cost for your situation across multiple lenders before you commit.
What is peak debt and why does it matter?
Peak debt is the total you owe during the bridging period - your existing mortgage plus the full purchase price of the new property. It is the number that drives your bridging cost because all interest is calculated on this combined figure. Once your existing property sells and the proceeds are applied, your loan reduces to the end debt on the new property only.
What are the risks of bridging finance?
The main risk is that your existing property takes longer to sell than expected. Every extra month on bridge adds more interest to your total cost. If the property does not sell by the agreed bridging period, some lenders allow extensions (which may involve additional fees) or may require price reductions. Lendology helps you assess realistic sale timelines for your suburb and selects lenders with flexible bridging policies to minimise this risk.
What are the alternatives to bridging finance?
If bridging finance looks costly or complex, alternatives include selling your current property first and renting while you search for the next one, making your offer subject to the sale of your existing property, or using equity from your current home as the deposit through a deposit bond or equity release. Each approach has trade-offs in terms of certainty, timeline, and cost. Lendology can walk you through the options for your specific situation and help you choose the right approach.