Bridging finance is a specialised form of borrowing that can be needed when you’re buying one property and selling another at the same time. At DFS, we arrange bridging loans for our clients as one of our specialist services.

Expand your financial flexibility with a bridging loan

A bridging loan is a short-term loan that helps you bridge the gap between two separate financing events. This type of loan is ideal if you need to buy a property but don’t have the cash upfront.

At Diverse Funding Solutions, we make it possible for you to secure this type of financing hassle-free. We understand that sometimes the need for cash arises quickly, and you shouldn’t be held back from being financially flexible and achieving your goals.

This is why our team of experienced professionals work round-the-clock to help you find the right bridging loan package to suit your needs, providing fast approvals and favourable payment terms from a pool of more than 200 lenders. We will assess your individual circumstances, regardless of credit history, and provide tailored solutions depending on what kind of financing you require.

What is a bridging loan?

While you wait for a house to sell, you may fund the purchase of a new one with bridging loans. As their name implies, these loans let you “bridge” the gap between the money you have on hand right now and the money you need to purchase a new home.

For the most part, they are short-term, interest-only loans with terms of up to six months for purchasing an existing home and up to twelve months for purchasing a newly constructed home. When you take out a short-term bridging loan, your current home loan and the bridging funding are both in force for a brief period. When your current property is sold, the remaining balance is converted into a single loan for your new home.

Many Australians utilise bridging financing to speed up the purchase and selling of homes. It is a required kind of finance since the settlement dates for purchasing and selling transactions often do not coincide.

The two types of bridging finance in Australia

Open and closed bridging financing are the two most common forms. Because the two carry varying degrees of risk, it’s critical to understand the differences between the two:

  • Open bridging finance

If you haven’t yet sold your current house, you can apply for an open bridging loan. It’s crucial to realise that there is no assurance that your current property will be sold prior to the bridging loan’s maturity date. The sum of a bridging loan must be repaid in full when the maturity date comes to pass.

Taking out an open bridging loan can be dangerous in the current real estate market. Many factors go into the viability of selling a house, and some homeowners experience years of waiting before finally closing a deal. If you are having problems selling, you might have to lower your asking price to close the deal and repay your bridging loan.

  • Closed bridging finance

You can apply for a closed bridging loan if you already know when your existing property will be sold. This means that you already have a deal in place or a very eager prospective buyer. Because the money will be there to cover the debt when the loan expires, this option has a lesser risk.

Benefits of Diverse Funding Solutions’ fast bridging loans

Diverse Funding Solutions’ fast bridging loans provide a variety of benefits for those looking to make financial moves quickly. Our streamlined process and low-cost structure can help you get the capital you need to close on properties faster than ever before.

  • Flexible terms with low-interest rates 

Our flexible repayment terms and competitive interest rates help keep your costs low, and our finance industry expertise ensures you’ll get the best possible deal. With access to a pool of more than 200 lenders and a simple application process, you won’t have to wait for weeks or months before you can move forward with your project.

  • Available even if you have a bad credit rating

Diverse Funding Solutions’ urgent bridging loans are tailored to fit the specific needs of each customer. We understand that everyone’s financial situation is unique, so our loan advisors work with you to create a financing package that meets your individual goals and objectives, regardless of your current credit rating. With our bad credit bridging loan, you’ll be able to move forward with your project, knowing that you have the capital to back it up.

  • Quick approvals

With an efficient team and a straightforward application process, Diverse Funding Solutions’ bridging loans come with quick approval times. Our experts are dedicated to making the process as smooth and efficient as possible so that you can get the capital you need quickly. We’ll work with you every step of the way, from pre-approval to closing, to ensure you get the financing you need without any hassle or fuss.

  • Easier than working with a bank

Diverse Funding Solutions’ fast bridging loans also come with the added benefit of being easier to manage than traditional bank loans. We understand that sometimes banks can be slow to respond or may require extensive paperwork, so we offer a simpler process with fewer hoops to jump through. Plus, our team is available 24/7 to answer any questions you have about our services.

At Diverse Funding Solutions, we are committed to providing fast bridging loan solutions that give our customers the flexibility and security they need to move forward with their projects quickly and affordably. Our competitive rates and flexible repayment terms allow you to access the capital you need without unnecessary trouble or stress.

Diverse Funding Solutions — your source of quick and easy bridging financing

Diverse Funding Solutions works with over 200 different investors and lenders, from traditional banks to non-bank private lenders. In all areas of Australia, we help customers with quick caveat loans, urgent bridging financing, short-term property loans, conventional home loans, asset financing, financing for property development, unsecured business loans, commercial loans, and private lender loans.

We believe in finding solutions, not adding to your financial burden. As one of the leading private lenders and bridging loans specialists in Australia, you can trust us to find the financing you need with low-interest rates, quick processing and flexible payment terms.

Get a short-term bridging loan in Australia today!

While waiting for your old property to be sold, you should not be prevented from securing the new property of your dreams. Get ahead of the competition or other prospective buyers with a fast bridging loan. And there’s no better place to get such a loan than Diverse Funding Solutions — your go-to source of fast caveat loans, bridging finance, 1st and 2nd mortgages, property development finance, and so much more.

We are here to help you secure the funding you need — fast, easy and hassle-free. Don’t wait any longer — get a free quote now! We look forward to hearing from you soon.

Not all financial needs are the same; our rates reflect this reality. We work with clients to adjust their interest rates to one best suited to them. Just give us a call at 1300 94 22 33 or contact us online if you have any questions or concerns regarding our services.

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    FAQs

    What is bridging finance?

    Bridging loans allow you to finance the purchase of a new property while you’re waiting to sell one. As the name suggests, these loans allow you to ‘bridge’ the gap between the funds you have available now and the funds you need to buy a new property.

    They are generally short-term, interest-only finance for up to 6 months for the purchase of an existing property, and up to 12 months for one that needs to be built.

    When you take out a bridging loan you have two loans in place for a short time – your existing property loan plus the bridging finance. The total amount owing is converted into a single loan for your new property when your existing property is sold.

    Who uses bridging finance in Australia?

    Bridging finance is used by many Australians to facilitate the buying and selling of properties. Settlement dates for buying and selling transactions often do not coincide, making it a necessary form of finance.

    What can I use bridging finance for?

    There are two basic types of bridging finance – open and closed. It’s important to understand the difference between the two because there are different levels of risk involved.

    Open bridging finance

    You can apply for an open bridging loan if you haven’t sold your existing property. However, it’s important to understand that there is no guarantee that your existing property will be sold before the bridging loan’s expiry date. A bridging loan amount must be paid out in full on its expiry date.

    In the immediate post-COVID-19 property environment, taking out an open bridging loan is risky. If you have trouble selling, you may be forced to drop your price to make a sale and pay out your bridging loan.

    Closed bridging finance

    If you already have a future settlement date for the sale of your existing property, you can apply for a closed bridging loan. This is the lower risk option, because the funds will be available to pay out the amount owing on the loan’s expiry date.

    How much can I borrow with bridging finance?

    The amount you can borrow using bridging finance depends on:

    • How much equity (ownership) you have in your existing property.
    • Its current value.
    • The purchase price of your new property (including associated costs such as stamp duty, conveyancing fees and building and pest inspections if necessary).
    • Your ability to make bridging loan interest repayments.
    What are the rates for bridging finance?

    Interest rates on bridging loans are usually higher than standard home loan rates, especially for higher-risk open bridging loans.

    Bridging loans can have different repayment arrangements. Some lenders will require you to pay interest on this finance along with your existing mortgage repayments. Others will only require you to make your existing repayments until your property is sold, with the bridging loan interest being added to your total outstanding balance.

    I’m self employed, is bridging finance good for me?

    If you’re self employed, it can be harder to get finance from traditional lenders (like banks and other financial institutions), especially bridging finance.

    Closed bridging finance can be a suitable option for you if you have a stable income and you can afford your additional interest repayments.

    Where can I get bridging finance?

    You can get bridging finance from both traditional lenders as well as private lenders. At DFS, we are private lending specialists. Traditional lenders usually have stricter lending criteria.

    How does bridging finance work at DFS?

    At DFS, we arrange bridging finance for our clients. We have:

    • Access to a pool of over 200 private lenders.
    • A simple application process.
    • No credit checks.
    • Fast approvals and settlement.
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