The Challenge

Daniel and Aisha had outgrown their first home. With a third child on the way, the two-bedroom house that once suited them perfectly had become tight, and they were ready to move up to a larger family home with more space and a backyard.

The difficulty was timing. They had built up solid equity in their current home, but most of their money was tied up in it. If they sold first, they would risk having nowhere to live and possibly having to rent and move twice with young children. If they bought first, they were not sure how they could afford two properties at once, even for a short time.

They wanted to buy the right home when it came up, not rush a sale of their existing one, and avoid the chaos of moving their family twice.

Finding the Right Solution

After reviewing their equity, income and goals, our broker explained how a bridging loan could solve the timing problem. A bridging loan would let them purchase the new home first, while still owning their current one, and then sell the existing home without pressure.

We mapped out the numbers across both properties, including the peak debt during the bridging period and the end loan they would be left with once their existing home sold. Because they had strong equity and a realistic view of their home’s sale value, the figures stacked up comfortably.

To keep things manageable, we structured the loan so the bridging period kept repayments contained while they marketed and sold their old home. We also built in a sensible buffer and a realistic sale timeframe, so they would not be caught out if the sale took a little longer than expected.

The Application Process

We prepared the application showing both the new purchase and the existing property, along with their income, equity and an estimated sale price for the home they were selling.

Bridging finance involves a closer look at the timing and the expected sale, so we presented a clear plan for the sale and the resulting end loan, which gave the lender confidence in the overall structure.

With everything laid out clearly, the lender approved the bridging facility, allowing the family to move ahead on their new home before their existing one had sold.