Is A Bridging Loan A Good Idea

After asking ‘is a bridging loan a good idea?’ the follow-up question that most people ask is if getting one is expensive. The bridging finance rates on your bridging home loan depend on the terms of your lender and your bridging loan eligibility. Typically, you can get better rates if you have a good credit profile and a low loan-to-value ratio (LVR). The cost of bridge financing can be expensive if your LVR is over 80%, as lenders may consider your loan a higher risk.

Bridgit adjusts pricing and loan size based on risk. The stronger your credit profile and the higher the quality of your asset, the better the rates we can offer you. To get an outline of rates and fees tailored to your loan scenario, apply for a free, no-obligation quote on our platform.

Unlike other lenders, we don’t charge early exit fees and monthly repayments, plus we have a maximum LVR of 80%. You can pay back your loan in full by the end of your loan term after successfully selling your existing home. If you sell before your term ends, you can settle your loan without any early repayment fees.

The loan interest rate is another consideration if you’re wondering about questions like ‘is a bridging loan a good idea?’ Your actual interest rate is still subject to your loan size, bridging period, LVR, credit score, and other factors that vary from one lender to another. Make sure you know the interest rates your lender charges when deciding where to get a bridge loan.

So whenever you ask, ‘is a bridging loan a good idea?’ here’s the Bridgit difference; we offer an introductory rate for the first six months of your loan! If you pay back a minimum of 40% of your total bridging loan loan amount (e.g. through sale of property) within the first six months, you will remain on the introductory rate for the reminder of your loan term. Plus there are no monthly fees or repayments, providing peace of mind while you are in the process of selling.

After selling your property and paying your loan, if there is no outstanding balance, we can release the security over your property within a few days. In case you have a remaining balance after your property sale – which commonly happens when upsizing homes – we will partially discharge your loan. You may refinance the balance with a different lender who can offer you a longer loan term.

Now, you must be wondering how to apply for a bridging loan in Melbourne or anywhere in Australia and if it’s difficult to get one. Getting a personal bridge loan from a traditional bridging finance company can be more complex as their bridging loan lending criteria can be rigid and strict.

Most traditional lenders are stuck with slow manual processes, so your loan application can take much longer than getting a loan from a non-bank lender. Online lenders like Bridgit make it easy to apply for a bridging mortgage from anywhere you are in the country, plus they have an Australian-based customer service team to support you through the process.

Bridgit uses custom advanced technology, enabling you to complete your short-term bridging loan application in under ten minutes. 24-hour approval is possible, and you may process the bridging loan requirements entirely online too. After submitting your application, we will get back to you with a personalised loan offer. Simply make a small deposit (from $900) to confirm your acceptance of our offer and the valuation payment. The necessary documents Bridgit needs will be requested for upload online and you can sign your loan documentation electronically – getting a Bridgit loan is that easy!

If you’re still going back and forth with questions like ‘is a bridging loan a good idea?’ our unparalleled customer service will be more than happy to guide you in making the right decision. Apply for a Bridgit loan now and take one step closer to the home of your dreams!