What is the typical interest rate on a bridging loan?

How much does a bridging loan cost? The costs of a bridging loan include an arrangement fee and the interest costs of the loan. There may also be a fee for using a broker to organise your bridging loan. Arrangement fees are usually around 2% and monthly interest rates start from 0.40% up to 1.50%.

Is bridging loan a good idea?

Bridging loans are more beneficial in suburbs/locations where properties tend to stay on the market for longer and are more difficult to sell. Apart from buying an existing property, bridging loans are a great option if you want to stay in your current property while you build a new property.

Is there an alternative to a bridging loan?

Both asset refinancing and invoice finance can be put in place quickly and can provide a cheaper alternative to bridging finance. Other alternatives include development finance, commercial loans, secured loans, commercial mortgages and asset loans.

Is a bridging loan a bad idea?

A bridge loan may be a good option for you if you want to purchase a new home before your current home has sold. Bridge loans also tend to have high interest rates and only last for between six months and a year, so they’re best for borrowers who expect their current home to sell quickly.

Are there any fees with a bridging loan?

A Bridging Loan is not available on all home loans, and you may incur some fees and charges depending on your loan type. A Bridging Loan is generally an Interest Only loan for the 12-month period. The longer it takes you to sell your current home, the longer you’ll be charged interest on the bridging finance.

Why did I Choose Bank Australia for my bridging loan?

By moving your money to Bank Australia, you’re ensuring your money is part of funding a future aligned to your values: renewable energy, not for profits, sustainable and affordable housing and much more. Why choose our Bridging loan? Available to new and existing customers.

How long is a bridging loan good for?

A Bridging Loan is generally an Interest Only loan for the 12-month period. The longer it takes you to sell your current home, the longer you’ll be charged interest on the bridging finance. If you don’t sell your home in the agreed period, we may get involved to sell the property.

What do you need to know about bridging finance?

A private, boutique Australian lending firm providing quick and secure bridging loans. Decades of experience in property, finance and banking to help business owners and home owners get the cash flow they need when in matters most. Apply Now Why Bridging Finance? A private, boutique Australian lending firm providing quick and secure bridging loans.