Private bridging finance in Sydney
How private bridging loans work in Sydney for companies and investors, the kinds of deals we see, what lenders check, and how quickly you can settle.
A private bridging loan lets a company or trust buy, refinance or release equity against Sydney property now, and repay the loan when a sale settles or a bank refinance comes through. It's built for timing problems, and in Sydney timing is usually the whole problem, because contracts move quickly and sales don't always.
Our bridging loans are for business and investment purposes only, from $1M to $20M, over 6 to 36 months, and we normally settle in 5 to 10 business days once the valuation is in.
A Sydney bridge we've settled
We settled a bridging loan that refinanced an existing loan over one investment property and funded the purchase of another. The loan was sized against the combined value of both properties, interest was paid upfront so there were no monthly payments, and the exit was the sale of the first property followed by a refinance of the balance to a cheaper lender. The early repayment cost was written into the term sheet from the start, so selling early didn't bring any surprises. (Details have been changed to protect the client.)
Sydney deals that didn't fit, and why
The examples below are based on real enquiries, but the numbers and details have been changed so none of them can be identified.
- A development site valued on its future potential. Our funding partners don't take development sites as security when the value leans on a future approval rather than what's there today, so it didn't proceed with us.
- A second mortgage where the valuation assumed an approval the owner didn't hold. Without it, the true value was much lower and the leverage was too high, so we declined it.
- A simple equity release that stalled. We couldn't get the information we needed from the client, and a bridge can't settle in a week if nobody returns the calls.
What Sydney bridging lenders look at
- The as-is value. Not the price you hope for, and not a value that relies on an approval you don't have.
- The peak debt. The loan plus capitalised or prepaid interest and fees has to sit inside the LVR.
- The exit. A sale with a realistic price and time on market for that suburb, or a bank approval that's genuinely in progress.
- The borrower. A company or trust with a business or investment purpose, and directors who'll guarantee it.
Sydney's market right now
In a lot of the Sydney deals we've seen this year, sales have taken longer and valuations have come in more cautiously than owners expected. That matters for a bridge, because a sale that takes six months instead of three adds three months of interest, so we'd rather set the term with room to spare than have a client rolling the loan. If you want suburb-level detail, our Sydney suburb guides cover 30 of them.
Frequently asked questions
Can I get a bridging loan in Sydney for an investment purchase?
Yes, as long as the borrower is a company or trust and the purpose is business or investment. We don't lend for a home you'll live in.
How much can I borrow?
It depends on the property and location, and it's based on the combined value of all the security, including any property being bought.
Do I have to make monthly repayments?
Usually not. Most of our bridges have interest prepaid or capitalised, so the cash flow pressure sits at the end rather than every month.