Bridging Finance Australia: Buy Before Selling in 2026
Buy Now, Sell Later: Why More Homeowners Are Turning to Bridging Finance
Finding your next home is exciting, but coordinating the purchase with the sale of your current property can be challenging. Bridging finance is one option some homeowners consider when they want to buy before selling.
What the latest news tells us
Broker Daily reported on 19 October 2026 that Macquarie had increased its funding facility for non-bank lender Bridgit, taking total committed funding from its investors, including Macquarie and Citi, to more than $1.7 billion. Bridgit reported a 28% quarter-on-quarter increase in loan submissions between Q4 FY2025–26 and Q1 FY2026–27, despite a broader property market slowdown.
Broker Daily also reported increased demand for bridging finance among some upgraders. When buying and selling timelines do not align, eligible homeowners may consider bridging finance to purchase their next property before selling their current one. Firstmac announced changes to its bridging loan on 20 October 2026, including a 12-month period to sell the existing property, subject to its lending criteria and product terms.
How a bridging loan works
A bridging loan is a short-term loan that covers the gap between buying your new home and selling your old one. Depending on the lender and loan structure, peak debt may include your existing home loan, the purchase price of your new property and eligible associated costs. When your existing property sells, the net sale proceeds can be used to reduce the outstanding debt. The final amount depends on the sale price, selling costs and loan terms.
What we look at first
Before you make an offer, a broker will usually walk you through these areas:
- Borrowing capacity: Lenders assess your income, expenses, existing debts and ability to meet their serviceability requirements under the proposed loan structure.
- Home equity: Available equity in your current property may help fund your next purchase and associated costs, subject to valuation, lending criteria and approval.
- Loan costs: Interest rates, fees and repayment arrangements vary between bridging products. Compare the total borrowing costs and understand when interest or repayments become payable.
- Exit strategy: Plan how you will repay or reduce the debt after your current property sells, including what happens if the sale takes longer than expected or the selling price is lower than anticipated.
Plan for the risk as well as the opportunity
A softer property market may create opportunities for some upgraders, but the financial outcome depends on both the purchase price and the sale price of their existing home. Bridging finance may provide additional time to complete the sale, depending on the lender’s terms, but it does not remove the risks. If your property takes longer to sell or sells for less than expected, you could face additional interest costs or a higher remaining debt than planned. As brokers quoted by Broker Daily highlighted, the loan structure and repayment strategy need to suit your financial circumstances.
Get your finances ready first
The smartest move is to prepare before you fall in love with a property. You can try our borrowing capacity calculator for a starting point and read more about home upgrade finance, equity and bridging costs. Getting pre-approval also shows you a clear price range, so you can make an offer with confidence. Our home loan pre-approval service is a good place to begin.
Considering buying before selling? OM Financials can help you explore suitable bridging finance options, understand the associated costs and assess how a proposed loan may fit your financial circumstances. Speak with our team to discuss your borrowing capacity and available options. Book a consultation or contact us on 0478 876 967
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Disclaimer: This article is general information only and does not constitute financial or credit advice. It does not take into account your objectives, financial situation or needs. Consider whether the information is appropriate for your circumstances and seek professional advice where necessary.
