Should I Get a Bridging Loan?

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Should I Get a Bridging Loan?

Funding Options’ managing director Dom Cassisi talks about building bridges in your home ownership future. A bridging loan could help you avoid burning any bridges you’ll regret!

What is a Bridging Loan?

Time is not usually on your side when it comes time to switch homes. You want to buy a new one but you can’t do that without selling the old. You can’t move out of the old until you have the new one secured.

What do you do?

Here’s where a bridging loan can help you to financially bridge that gap. Put simply, a bridging loan gets you the funds you need to buy before you sell. It allows you to keep making payments on your original loan as you work towards purchasing a new home. This lessens that feeling of ‘must sell my home ASAP’.

When you may need a Bridging Loan

You might consider getting a little help to buy before you sell in the event of:

– Tough market conditions

– Financial hardship

– Need to move sooner than expected because of changing circumstances


A bridging loan is a one-off thing. You won’t need to maintain two loans at once to finance your property swap. This arrangement also buys you more time as you won’t feel pressured settle for a bad deal when selling your current home.

Having a bridging loan helps you have a better idea of just how much you have in terms of funds. There’s no guessing and you can budget easily as you plan your purchase move.


A bridging loan isn’t for everyone. It isn’t exactly a cure-all in the event you don’t have enough equity on your current home. Many experts would suggest that you have at least 50% of your home’s equity saved up before you even consider a bridging loan.

There’s always the scary possibility that getting this loan (which helps to nudge you out the door) could leave you with no home at all if you don’t find a suitable one in your target market. An unexpected surge in price could also leave you in this situation.

Is a bridging loan right for your situation? To find out, contact us at Funding Options. We’ll help you weigh up all of the finance options (no cost to you!). Start with a no obligations, free chat with us about your situation.

– Dom Cassisi, Managing Director

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