Bridging Finance is an Essential Tool

Need Bridging Finance? We’re here to help.

A bridging loan acts as a ‘bridge’ between buying a new property and selling your old property. It’s temporary financing to cover the period of time until you sell your home, during this time you’ll need two mortgages. Bridging loans are typically interest only, and floating, with a premium such as 1% or 2% p.a. above the standard floating rate.

What is the process for bridging finance?

  1. Feasibility Assessment
  2. Fee Finalisation
  3. Application Submission
  4. Drawdown to purchase new property
  5. Paying off lending on sale of old property

Seen us around?

We are proud to have been featured on a number of important New Zealand real estate, property and news websites. Some articles have written about us, some articles feature Andrew Malcolm’s contributions via interview and other articles were written by us. 

Open Bridge vs Closed Bridge

A closed bridge is when you have a definite end point. For example: you’ve gone unconditional on the sale of your home, and the settlement date is 4 months in the future. You’ve also gone unconditional to buy your new home and the settlement date is 1 month in the future. You have a defined end point for your bridging finance (4 months away).

An open bridge is when you have an open ended end point, i.e. you’ve purchased a new home, but haven’t gone unconditional on the sale of your old home. Open bridge loans have both higher requirements to qualify, and higher interest rates.

What are the typical costs for bridging finance?

Firstly is the feasibility assessment, this is non-refundable and is $200. 

The process will be as follows:

  1. Order your feasibility study using the form below.
  2. You will be redirected to an order form where you pay for the feasibility assessment.
  3. After payment you will be redirected to create a profile on our secure online portal. Please complete your online profile with income, expenses, assets, and liabilities information. There is no need to upload any docs at this stage.
  4. Your Mortgage Adviser will prepare a summary of options and then schedule a meeting with you.
  5. Meet together virtually via Google Meets for your 45-minute meeting.

Fee expectations:

In some circumstances these can be waived or reduced, it is dependent on your requirements and current lender appetite and suitability. We will work hard to provide you with the best value available from the market. We are accredited with all 5 main New Zealand banks in addition to other banks and non-bank lenders. 

  • Closed Bridge (Main Bank or Non-bank Lender). $1,200 in most cases.
  • Main Bank Open Bridge. 1.5% of total lending.
  • Non-bank Lender Open Bridge. 2.0% of total lending.

    Get your bridging finance organised with our help.

    Order your feasibility assessment using this form

    Calculate borrowing power, potential savings, and more.

    Book a 10-minute introductory chat to clarify your situation and goals then get matched with an adviser specialized in your situation.

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