A bridging loan can provide a cashflow injection for personal use when:
- Your bank can’t deliver based on circumstance or time
- You don’t have financials in order (but have equity in your home or another real estate
- You need short term bridging funds to:
- Renovate or prepare your property prior to the sale
- Complete a small land subdivision or duplex intended for sale
- Get a deposit for a new property (investment or principal place of residence)
- Help with moving, living, legal or medical costs
- Pay a personal bill or debt that can’t wait until the property is sold
Short term bridging loan snapshot:
- $25K – $500K+
- By caveat, second or first mortgage
- Funding typically within 3 – 5 days from application
- Loan terms from 2 to 24 months+
- Available Australia-wide
- No credit check or income assessment
- Minimal documentation
- Real estate backed (residential real estate required to obtain a loan)
- Flexible underwriting
- NCCP compliant
- Australian Credit Licence 422165 (Mango Mortgages Pty Ltd)
The upside of short term bridging loans include:
- Access the equity in your home within days to help buy your new home quickly or pay the deposit on your next residential purchase
- You don’t have to miss out on THAT property while you wait to sell yours
- Avoid the stress of having to sell in a hurry, and, by doing so, you potentially get a better price on your house
- Maximise the market value of your home in preparation for sale
- Can help reduce or avoid storage and/ or temporary rental property costs
- Create wealth by completing that small subdivision or duplex
- Fully regulated by ASIC with the extra protection of AFCA membership (Mango Mortgages only)
- Obtain funding for personal purposes
Apply here for bridging loans online
Types of bridging loans we offer
Caveat loans for personal use
The main benefit of a caveat loan is that they’re quick, easy, flexible and require minimal documentation.
A short-term caveat loan is commonly used to manage the cash flow between the sale and purchase of a property. So, if you have sold a property and need to pay for another, but settlement timing doesn’t match up, a caveat loan can be a great short-term solution.
In addition, caveat loans can be used to complete renovations or residential development projects. Caveat loans can help raise funds required for construction, with a caveat on the property, which will be released once the property is finished and sold.
We offer short-term caveat loans with flexible repayment periods. And you can quickly and easily apply online.
First mortgage loans
Most first homeowners will require a mortgage to secure their new home. Historically first mortgages have been provided by big banks for a long term (often 15 years up to 30 years). Though it’s becoming increasingly clear that longer-term loans do not always suit everyone’s circumstances – particularly for borrowers who may only need access to funds for a shorter period of time or if their credit history has been impacted.
The good news is that there are a number of alternative and private lenders in Australia who provide short-term first mortgages, which typically have a duration of 2 to 36 months.
It’s also good to keep in mind that while generally, first mortgages are for property purchases, they can be used for home renovations or paying bills. A short-term first mortgage is also often utilised to fund business ventures or cover construction costs for real estate development.
We offer short-term first mortgage loans with flexible repayment periods. And you can quickly and easily apply online.
Second mortgage loans
A short-term second mortgage may be worth considering if you have solid equity in your home, an inability to extend or refinance your primary mortgage loan, and quickly need access to significant funds.
A short-term second mortgage loan can be used for personal or business purposes. Common business requirements include boosting working capital, acquiring equipment or stock, or even purchasing a business. Typical short-term second mortgage loan uses include consolidating debts (such as personal loans and credit cards), paying a one-off large bill or undertaking renovations on your home.
We offer short-term second mortgage loans with flexible repayment periods. And you can quickly and easily apply online.
Home equity loans
If you have built up equity in your home (via repayments and an increase in property value over time) and you need access to a large amount of funds quickly, a short-term home equity loan may be worth considering. Generally speaking, the more equity you have in your home, the more you will be able to borrow through a home equity loan.
Common uses for a short-term home equity loan include funding renovations, investments, business working capital or repaying debt, such as ATO debt, personal or business debt.
We offer short-term home equity loans with flexible repayment periods. And you can quickly and easily apply online.
How do bridging loans work?
In most cases, borrowers secure quick bridging loans in Australia to bridge the gap in funding between buying a new property and selling the old one. That is, when you take out a short term bridge loan, you need to settle the loan based on a 6 to 12-month repayment term, with consideration that your existing property will be sold by this time.
Here’s how a bridging loan works:
- The loan credit company provides the funds to buy the new property and takes over the loan of the existing property. The lender can also restructure your loan in a way that the term of the original loan can be shortened. Depending on the credit company, some fees would be paid as well.
- The money that the borrower owes to the credit company is called the “peak debt.” This is the total amount of money that the borrower owes to the lender, the existing loan of your property and the new loan amount that will be used to buy the new property.
- Repayments will change during the duration of your loan. In this case, you have to check with the credit company for the payment conditions.
- After selling your existing property, the remaining balance of your loan will be the “end debt.” This means that the payment of your existing property will be deducted from your principal loan amount. Hence, end debt represents the principal amount of your bridging loan.
How long does it take to get a bridging loan?
The time to process a bridging loan application is dependent on the type of lender providing loans. A short-term bridging loan lender, such as Mango Mortgages, can process a loan and release funds often within a few days. Click here to apply for a short-term bridging loan..
What is a bridging loan in real estate?
A bridging loan is often used in real estate to access funds to acquire land, purchase residential or commercial property, or help projects progress. Click here to apply for a short-term bridging loan.
What is the interest rate for a bridging loan?
The interest rate for a bridging loan is dependent on the type of lender providing loans. Click here to view our interest rates.
How do I qualify for a bridging loan?
The qualification criteria for a bridging loan is dependent on the lender. Here’s what we need from you to consider a short-term bridging loan:
- Your details
- Your broker’s details (if applicable)
- Security offered (property details)
- The loan particulars (including the loan amount, purpose, term, exit strategy and when you require funds.
- A copy of your most recent council rates notice and your most recent mortgage statement.
Click here to apply for a short-term bridging loan.
What documentation do I need for a bridging loan?
Each lender will differ regarding the documentation required to secure a bridging loan. Common requirements include business and personal bank statements, tax returns, business financial statements, business plan, certificate of incorporation and other business legal documents. The good news is that we only require your most recent council rates notice and your most recent existing mortgage statement when considering your loan application.
How do I apply for a bridging loan?
Different lenders have varying bridging loan application requirements and processes. It’s easy to apply for a loan with us: you can submit an enquiry by phone, email or apply online. Upon receiving your enquiry or application, we email an indicative quote that details the interest rates, costs, loan structure and document requirements. If you agree with the proposal, we then issue a formal and more detailed letter of offer. You return the signed proposal with the required documents, and we ask our solicitors to issue security documents or order a valuation if needed. Once we receive the security documents, we settle by electronic transfer of funds. Click here to apply for a short-term bridging loan.
Get started! Contact us today.
We offer short-term bridging loans, as well as fast first mortgages, second mortgages, home equity loans and business loans. And you can quickly and easily apply online.