Find and compare bridging home loans

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Advertised Rate

4.16%

Variable

Comparison Rate*

4.20%

Company
Bank Australia
Repayment

$25,567

monthly

Features
Redraw facility
Offset Account
Borrow up to 90%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.92

/ 5
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More details
Advertised Rate

5.05%

Variable

Comparison Rate*

5.22%

Company
St.George Bank
Repayment

$1,263

monthly

Features
Redraw facility
Offset Account
Borrow up to 59.9999%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.48

/ 5
Go to site
More details
Advertised Rate

5.15%

Variable

Comparison Rate*

5.27%

Company
St.George Bank
Repayment

$1,288

monthly

Features
Redraw facility
Offset Account
Borrow up to 89.9999%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.48

/ 5
Go to site
More details
Advertised Rate

5.27%

Variable

Comparison Rate*

5.27%

Company
P&N Bank
Repayment

$1,318

monthly

Features
Redraw facility
Offset Account
Borrow up to 84.9999%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.33

/ 5
Go to site
More details
Advertised Rate

5.10%

Variable

Comparison Rate*

5.32%

Company
St.George Bank
Repayment

$1,275

monthly

Features
Redraw facility
Offset Account
Borrow up to 79.9999%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.48

/ 5
Go to site
More details
Advertised Rate

5.05%

Variable

Comparison Rate*

5.22%

Company
St.George Bank
Repayment

$25,689

monthly

Features
Redraw facility
Offset Account
Borrow up to 59.9999%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.48

/ 5
Go to site
More details
Advertised Rate

5.15%

Variable

Comparison Rate*

5.27%

Company
St.George Bank
Repayment

$25,703

monthly

Features
Redraw facility
Offset Account
Borrow up to 89.9999%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.48

/ 5
Go to site
More details
Advertised Rate

5.27%

Variable

Comparison Rate*

5.27%

Company
P&N Bank
Repayment

$25,719

monthly

Features
Redraw facility
Offset Account
Borrow up to 84.9999%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.33

/ 5
Go to site
More details
Advertised Rate

5.10%

Variable

Comparison Rate*

5.32%

Company
St.George Bank
Repayment

$25,696

monthly

Features
Redraw facility
Offset Account
Borrow up to 79.9999%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.48

/ 5
Go to site
More details
Advertised Rate

5.29%

Variable

Comparison Rate*

5.37%

Company
Heritage Bank
Repayment

$25,722

monthly

Features
Redraw facility
Offset Account
Borrow up to 85%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.33

/ 5
Go to site
More details
Advertised Rate

5.29%

Variable

Comparison Rate*

5.37%

Company
Heritage Bank
Repayment

$25,722

monthly

Features
Redraw facility
Offset Account
Borrow up to 85%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.33

/ 5
Go to site
More details

Learn more about home loans

What is a bridging loan?

When you need to move into a new property but you haven’t yet sold your old one, a bridging home loan can help. Bridging finance is a type of short term loan specially designed to make sure you don’t miss out on buying a new property because of temporary cash flow problems. It may be organised very quickly to help the process of moving go smoothly, with fewer hassles around lining up settlement dates.

How does bridging finance work?

A bridging loan allows you to access the funds you need to pay for a new home even before you have received money for your current home. 

A bridging loan covers the mortgage on your current property as well as the purchase price for your new property, making up your peak debt. Once your old property has sold, its sale price (minus upfront costs such as stamp duty) is used to reduce your peak debt, until you're left with your end debt. Your new loan will work like a typical home loan from this point forward. 

Because you effectively have two mortgages at once, bridging loans may only require interest-only loan repayments, or may even capitalise your interest charges into the peak debt until your first property sells. This can help to minimise your costs in the short term, though you may end up paying more in the long term.

A bridging loan may require you to get two valuations - one for your old property and one for your new property - to confirm the property values.

There are two different types of bridging loan:

Open bridging loans

Open bridging loans are available to borrowers who haven’t yet found buyers for their existing properties. They’re usually arranged for a bridging period of 12 months maximum, and there has to be a plan in place for what will happen if the property isn’t sold by then. You’ll have to demonstrate that you are making an effort to find a buyer, and that you have a reasonable amount of equity in the property you’re selling. 

Closed bridging loans

Closed bridging loans are available to people who have found buyers for their existing properties but haven’t yet completed all the paperwork. Because there’s less chance of things going wrong at this stage, these loans are usually quite a bit cheaper.

Bridging loans and building

A bridging home loan can also be used if you’re building the dream home you want to move into. The loan amount can free up funds to cover the cost of the build so that you are able to stay in your current property until the new one is ready. This can be considerably cheaper than renting, and help to reduce your overall moving costs.

How does a bridging loan compare to similar products?

Just like other home loans in Australia, a bridging loan may require you to pay for lenders mortgage insurance (LMI). If you hold less than 20 per cent of your peak debt as equity in your current property, you may need to pay for LMI. This is separate to the deposit you'll need for your new property purchase. 

One alternative option for securing your new property purchase is to place a deposit bond on it. A deposit bond is a guarantee from an insurance company that you will complete your purchase, even if you won't have the full deposit available until the sale of your current property is finalised. If you don't complete your property purchase in the agreed time frame, the deposit bond will pay out to the seller. Unlike with a bridging loan, you won’t need to pay interest with a deposit bond, but you will need to pay a one-off deposit bond fee, the cost of which will depend on the value of the property you’re trying to buy.

Main features of bridging finance

  • Easy to arrange;
  • Gives you fast access to funds;
  • Bridges the gap between buying and selling;
  • Helps if you want to build your new home.

Bridging loan risks and rewards

One potential drawback of a bridging finance is that bridging loans don't typically offer a redraw facility. This means that even if you make extra repayments onto your bridging loan, you won't be able to redraw this money if you need it again. 

Closed bridging loans can be relatively low cost and low risk. Open bridging loans carry more risk but as long as you work out your contingency plans carefully with the help of a financial adviser, you should be able to avoid finding yourself in trouble. The more honest you are when arranging your loan, the less likely it is that things will go wrong. 

Having a bridging loan in place makes the process of moving from one owned property to another far less disruptive. Properly managed, it can also make it considerably less expensive overall. It's important to check with a mortgage broker or similar financial adviser whether a bridging loan may be the right choice for your financial situation.

Frequently asked questions

What is bridging finance?

A loan of shorter duration taken to buy a new property before a borrower sells an existing property, usually taken to cover the financial gap that occurs while buying a new property without first selling an older one.

Usually, these loans have higher interest rates and a shorter repayment duration.

Monthly Repayment

Your current monthly home loan repayment. To accurately calculate how much you could save, an accurate payment figure is required. If you are not certain, check your bank statement.

Remaining loan term

The length of time it will take to pay off your current home loan, based on the currently-entered mortgage balance, monthly repayment and interest rate.

Savings over

Select a number of years to see how much money you can save with different home loans over time.

e.g. To see how much you could save in two years by switching mortgages,  set the slider to 2.

Interest Rate

Your current home loan interest rate. To accurately calculate how much you could save, an accurate interest figure is required. If you are not certain, check your bank statement or log into your mortgage account.

How will Real Time Ratings help me find a new home loan?

The home loan market is complex. With almost 4,000 different loans on offer, it’s becoming increasingly difficult to work out which loans work for you.

That’s where Real Time RatingsTM can help. Our system automatically filters out loans that don’t fit your requirements and ranks the remaining loans based on your individual loan requirements and preferences.

Best of all, the ratings are calculated in real time so you know you’re getting the most current information.

How do I refinance my home loan?

Refinancing your home loan can involve a bit of paperwork but if you are moving on to a lower rate, it can save you thousands of dollars in the long-run. The first step is finding another loan on the market that you think will save you money over time or offer features that your current loan does not have. Once you have selected a couple of loans you are interested in, compare them with your current loan to see if you will save money in the long term on interest rates and fees. Remember to factor in any break fees and set up fees when assessing the cost of switching.

Once you have decided on a new loan it is simply a matter of contacting your existing and future lender to get the new loan set up. Beware that some lenders will revert your loan back to a 25 or 30 year term when you refinance which may mean initial lower repayments but may cost you more in the long run.

Who has the best home loan?

Determining who has the ‘best’ home loan really does depend on your own personal circumstances and requirements. It may be tempting to judge a loan merely on the interest rate but there can be added value in the extras on offer, such as offset and redraw facilities, that aren’t available with all low rate loans.

To determine which loan is the best for you, think about whether you would prefer the consistency of a fixed loan or the flexibility and potential benefits of a variable loan. Then determine which features will be necessary throughout the life of your loan. Thirdly, consider how much you are willing to pay in fees for the loan you want. Once you find the perfect combination of these three elements you are on your way to determining the best loan for you. 

How can I get a home loan with bad credit?

If you want to get a home loan with bad credit, you need to convince a lender that your problems are behind you and that you will, indeed, be able to repay a mortgage.

One step you might want to take is to visit a mortgage broker who specialises in bad credit home loans (also known as ‘non-conforming home loans’ or ‘sub-prime home loans’). An experienced broker will know which lenders to approach, and how to plead your case with each of them.

Two points to bear in mind are:

  • Many home loan lenders don’t provide bad credit mortgages
  • Each lender has its own policies, and therefore favours different things

If you’d prefer to directly approach the lender yourself, you’re more likely to find success with smaller non-bank lenders that specialise in bad credit home loans (as opposed to bigger banks that prefer ‘vanilla’ mortgages). That’s because these smaller lenders are more likely to treat you as a unique individual rather than judge you according to a one-size-fits-all policy.

Lenders try to minimise their risk, so if you want to get a home loan with bad credit, you need to do everything you can to convince lenders that you’re safer than your credit history might suggest. If possible, provide paperwork that shows:

  • You have a secure job
  • You have a steady income
  • You’ve been reducing your debts
  • You’ve been increasing your savings

What is a low-deposit home loan?

A low-deposit home loan is a mortgage where you need to borrow more than 80 per cent of the purchase price – in other words, your deposit is less than 20 per cent of the purchase price.

For example, if you want to buy a $500,000 property, you’ll need a low-deposit home loan if your deposit is less than $100,000 and therefore you need to borrow more than $400,000.

As a general rule, you’ll need to pay LMI (lender’s mortgage insurance) if you take out a low-deposit home loan. You can use this LMI calculator to estimate your LMI payment.

How can I get ANZ home loan pre-approval?

Shopping for a new home is an exciting experience and getting a pre-approval on the loan may give you the peace of mind that you are looking at properties within your budget. 

At the time of applying for the ANZ Bank home loan pre-approval, you will be required to provide proof of employment and income, along with records of your savings and debts.

An ANZ home loan pre-approval time frame is usually up to three months. However, being pre-approved doesn’t necessarily mean you will get your home loan. Other factors could lead to your home loan application being rejected, even with a prior pre-approval. Some factors include the property evaluation not meeting the bank’s criteria or a change in your financial circumstances.

You can make an application for ANZ home loan pre-approval online or call on 1800100641 Mon-Fri 8.00 am to 8.00 pm (AEST).

What is equity? How can I use equity in my home loan?

Equity refers to the difference between what your property is worth and how much you owe on it. Essentially, it is the amount you have repaid on your home loan to date, although if your property has gone up in value it can sometimes be a lot more.

You can use the equity in your home loan to finance renovations on your existing property or as a deposit on an investment property. It can also be accessed for other investment opportunities or smaller purchases, such as a car or holiday, using a redraw facility.

Once you are over 65 you can even use the equity in your home loan as a source of income by taking out a reverse mortgage. This will let you access the equity in your loan in the form of regular payments which will be paid back to the bank following your death by selling your property. But like all financial products, it’s best to seek professional advice before you sign on the dotted line.

What is a building in course of erection loan?

Also known as a construction home loan, a building in course of erection (BICOE) loan loan allows you to draw down funds as a building project advances in order to pay the builders. This option is available on selected variable rate loans.

How much money can I borrow for a home loan?

Tip: You can use RateCity how much can I borrow calculator to get a quick answer.

How much money you can borrow for a home loan will depend on a number of factors including your employment status, your income (and your partner’s income if you are taking out a joint loan), the size of your deposit, your living expenses and any other debt you might hold, including credit cards. 

A good place to start is to work out how much you can afford to make in monthly repayments, factoring in a buffer of at least 2 – 3 per cent to allow for interest rate rises along the way. You’ll also need to factor in additional costs that come with purchasing a property such as stamp duty, legal fees, building inspections, strata or council fees.

If you are planning on renting the property, you can factor in the expected rental income to help offset the mortgage, but again it’s prudent to add a significant buffer to allow for rental management fees, maintenance costs and short periods of no rental income when tenants move out. It’s also wise to factor in changes in personal circumstances – the typical home loan lasts for around 30 years and a lot can happen between now and then.

What are the pros and cons of no-deposit home loans?

It’s no longer possible to get a no-deposit home loan in Australia. In some circumstances, you might be able to take out a mortgage with a 5 per cent deposit – but before you do so, it’s important to weigh up the pros and cons.

The big advantage of borrowing 95 per cent (also known as a 95 per cent home loan) is that you get to buy your property sooner. That may be particularly important if you plan to purchase in a rising market, where prices are increasing faster than you can accumulate savings.

But 95 per cent home loans also have disadvantages. First, the 95 per cent home loan market is relatively small, so you’ll have fewer options to choose from. Second, you’ll probably have to pay LMI (lender’s mortgage insurance). Third, you’ll probably be charged a higher interest rate. Fourth, the more you borrow, the more you’ll ultimately have to pay in interest. Fifth, if your property declines in value, your mortgage might end up being worth more than your home.

Are bad credit home loans dangerous?

Bad credit home loans can be dangerous if the borrower signs up for a loan they’ll struggle to repay. This might occur if the borrower takes out a mortgage at the limit of their financial capacity, especially if they have some combination of a low income, an insecure job and poor savings habits.

Bad credit home loans can also be dangerous if the borrower buys a home in a stagnant or falling market – because if the home has to be sold, they might be left with ‘negative equity’ (where the home is worth less than the mortgage).

That said, bad credit home loans can work out well if the borrower is able to repay the mortgage – for example, if they borrow conservatively, have a decent income, a secure job and good savings habits. Another good sign is if the borrower buys a property in a market that is likely to rise over the long term.

Mortgage Balance

The amount you currently owe your mortgage lender. If you are not sure, enter your best estimate.

How personalised is my rating?

Real Time Ratings produces instant scores for loan products and updates them based what you tell us about what you’re looking for in a loan. In that sense, we believe the ratings are as close as you get to personalised; the more you tell us, the more we customise to ratings to your needs. Some borrowers value flexibility, while others want the lowest cost loan. Your preferences will be reflected in the rating. 

We also take a shorter term, more realistic view of how long borrowers hold onto their loan, which gives you a better idea about the true borrowing costs. We take your loan details and calculate how much each of the relevent loans would cost you on average each month over the next five years. We assess the overall flexibility of each loan and give you an easy indication of which ones are likely to adjust to your needs over time. 

Do other comparison sites offer the same service?

Real Time RatingsTM is the only online system that ranks the home loan market based on your personal borrowing preferences. Until now, home loans have been rated based on outdated data. Our system is unique because it reacts to changes as soon as we update our database.

How does Real Time Ratings work?

Real Time RatingsTM looks at your individual home loan requirements and uses this information to rank every applicable home loan in our database out of five.

This score is based on two main factors – cost and flexibility.

Cost is calculated by looking at the interest rates and fees over the first five years of the loan.

Flexibility is based on whether a loan offers features such as an offset account, redraw facility and extra repayments.

Real Time RatingsTM also includes the following assumptions:

  • Costs are calculated on the current variable rate however they could change in the future.
  • Loans are assumed to be principal and interest
  • Fixed-rate loans with terms greater than five years are still assessed on a five-year basis, so 10-year fixed loans are assessed as being only five years’ long.
  • Break costs are not included.