Flexible loan structure
Bridging finance tailored to your property plans, with options for buying or building and interest capitalisation available during the bridging period.
Buy or build your next property before selling your existinghome with Yard's flexible bridging loan
A bridging loan is a short-term home loan that helps you buy or build your next property before you've sold your existing one. Bridging finance covers the financial gap between the two transactions, giving you more time to sell your current property.
During the bridging period, your existing home loan and the funds required for your new property form your peak debt. Interest may be capitalised into the bridging loan during this period, subject to lending criteria. Once your existing property is sold, the sale proceeds reduce your peak debt. Any remaining balance, known as your end debt, then continues as your ongoing home loan.
Buy before you sell
A bridging loan gives you the flexibility to secure your next property before selling your current one, helping you avoid having to coordinate both property settlements at the same time.
Yard offers bridging finance for eligible owner-occupiers and property investors, whether you're buying an established property or building your next home.
Borrow up to 80% LVR during the bridging period. Your peak debt includes your existing home loan plus the finance required to buy or build your new property.
Interest-only repayments apply during the bridging period, with the option to capitalise interest into your peak debt until your existing property is sold.
Access bridging finance for up to 12 months, giving you more time to sell your existing property when buying or building your next home.
Use Yard's bridging finance to purchase an established property or build your next home before selling your existing property.
Flexible bridging finance with expert support to help you buy or build before you sell.
Bridging finance tailored to your property plans, with options for buying or building and interest capitalisation available during the bridging period.
Every bridging loan application is assessed on its own merits, taking into account your equity, property values, financial position and expected end debt.
Work with a dedicated Yard Loan Consultant who will guide you through your bridging loan application, from initial assessment through to settlement.
Yard's bridging loan covers the time between buying or building a new property, and settling on the sale of your existing one, available for a period of 6-12 months.
Use our bridging loan calculator to estimate your peak debt and remaining home loan balance after you sell your existing property.
Your peak debt
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Your end debt after sale
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Eligibility generally depends on the equity in your existing property, your financial position and the expected loan balance after your property is sold. Yard will typically assess:
Available equity: You'll generally need sufficient equity in your existing property or available cash to support the purchase. With Yard, peak debt can be up to 80% of the combined value of the properties.
End debt affordability: We assess the home loan balance you'll be left with after your existing property is sold and whether you can meet Yard's servicing requirements for the expected end debt.
Property value: We'll consider the value and marketability of your existing property, as well as the property you're buying or building and your expected sale price.
Clear exit strategy: There needs to be a clear plan for repaying the bridging finance, typically through the sale of your existing property within the agreed bridging period.
Every application is different. Speak with a Yard Loan Consultant to discuss your circumstances and understand whether a bridging loan may be suitable.
Understand the key benefits and considerations of a bridging loan before deciding whether bridging finance is right for your next property move.
Pros
Buy before you sell
Option to capitalise interest during the bridging period
Time to wait for a suitable offer
Cons
Interest accrues on your peak debt
Capitalised interest increases your loan balance
A lower property sale price may increase your estimated end debt
Your bridging loan combines your existing home loan with the funds required to purchase your new property. This combined amount is known as your peak debt.
You can have up to 12 months to sell your existing property, giving you more time to achieve a suitable sale.
When your existing property settles, the net sale proceeds are used to reduce your peak debt.
Any remaining balance becomes your end debt and continues as your ongoing home loan.
Yard’s bridging loan is a short-term loan designed to cover the purchase price or construction costs of a second property and give you time to sell your existing property. The loan provides you with a “bridge” between buying and selling. Once the current home is sold, the original mortgage is discharged and the loan converts to a standard home loan. For more information, read our bridging loan guide or talk to one of our experts.
The bridging loan term can be up to 12 months.
Yard can provide a bridging loan for up to 80% loan-to-value ratio of the combined value of the two properties.
The mortgage repayments during the bridging period are calculated on an interest only basis. The interest can also be capitalised, i.e. added to the loan amount you will owe at the end of the bridging period once your property is sold. You can make unlimited repayments during the bridging period to reduce the amount of interest you are charged.
A bridging loan may suit borrowers who want to buy a new property before their existing home has sold, or who plan to stay in their current home while a new one is being built. Potential advantages include:
It is worth weighing these against the potential drawbacks before deciding if a bridging loan suits your circumstances.
When assessing a bridging loan application, Yard typically considers whether you:
Yard bridging loans may also be used to help fund the construction of a new home. Final eligibility depends on your individual circumstances and Yard's credit criteria. Speak with a Yard Consultant to discuss what may apply to your situation.
New loan inquiries: hello@yard.com.au
Service requests: help@yard.com.au
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