Bridging finance · Sunshine Coast
Bridging loans on the Sunshine Coast: buy your next home before you sell
A bridging loan lets you buy your next home before your current one sells. The lender holds both properties, usually adds the interest to the loan instead of charging monthly repayments, and gives you 6 to 12 months to sell. It’s a brilliant tool when you have strong equity and a realistic sale price, and an expensive one when you don’t. This guide covers everything worth knowing before you sign.
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Months most banks give you to sell. Some non-banks go to 24, at a higher cost.
The usual cap on your peak debt, measured against the value of both homes.
The loan left once you sell. It’s what most lenders mainly assess your income against.
How it works
How does a bridging loan work?
Three numbers decide everything. Understand these and you’ll know more than most people who’ve had a bridging loan.
- Day onePeak debtYour current loan, plus the new home’s price, plus stamp duty and costs, minus any cash you put in. It’s the most you’ll ever owe.
- While you sellCapitalised interestInterest on the bridging part is added to the loan each month instead of coming out of your pay. It eases your cash flow, but you pay interest on the interest.
- Sale settlesSale proceedsThe net sale price, after agent and selling costs, pays the bridge down in one hit.
- From then onEnd debtWhat’s left becomes an ordinary home loan on your new place. This is the number your income has to support.
Because most lenders assess your income mainly against the end debt, not the peak, bridging can work even when your income couldn’t carry two mortgages. Some, like ANZ and CBA, also want to see you can cover the interest while you sell. The catch is that the peak, interest included, still has to fit within about 80% of the combined value of both homes. That 80% is the limit most people bump into.
Worked example
Case file: an upgrade in Buderim
A couple own a home worth about $1,050,000 with $380,000 left on the loan. They find a $1,400,000 family home in Buderim and want to buy it before they list.
- Existing loan
- $380,000
- New home
- $1,400,000
- Stamp duty (Queensland home concession)
- $53,850
- Peak debt before interest
- $1,833,850
- Interest added over 6 months on the bridge
- about $49,000
- Net sale proceeds (after about 2.5% selling costs)
- −$1,023,750
- End debt
- about $859,000
Each month on the bridge costs about $8,000. Sell in three months and the interest is around $24,000. Take the full twelve and it’s about $100,000, and the peak climbs to 79% of both homes, right at the cap.
Price matters more than time. If the old home sells 5% under the estimate, the end debt grows by about $49,000, and that stays with you for the life of the loan.
The duty is real money. On a $1.4 million home it’s more than $50,000, and it usually goes into the peak debt.
Illustrative only. Assumes a 9.4% bridging rate with interest added monthly on the bridging portion. Lenders structure and price bridging differently, and your end debt is serviced at the normal home loan rate.
A note from Melissa
Before you bridge: my advice
I’ve been in lending since 2006 and I invest and develop property myself, so I look at bridging the way an investor does: what it costs each month, and what happens if the sale takes longer than planned. Three things I’d want you to know.
Plan to sell in three months, budget for six. Nationally, homes are taking about 39 days to sell, with a typical discount of around 4% off the first asking price (Cotality, via Herron Todd White). Add marketing, the contract period and settlement, and three months goes fast.
Build your plan on the lower number. The lender values your current home itself, and a bank valuation is usually more cautious than an agent’s appraisal.
Price matters more than time. A slow sale costs you interest. A low sale stays with you for the life of the loan. Price your home to sell from day one.
Melissa Mann, Director & Senior Broker
Bridging calculator
Work out your peak debt and end debt
Change the numbers to match your situation. Stamp duty is worked out using Queensland home concession rates. Nothing you enter is stored or sent anywhere.
The lenders
What the banks actually offer in 2026
Bridging isn’t one product. The details vary more between lenders than with almost any other home loan, and those differences cost real money.
- Time to sell. Most major banks give up to 12 months. Bendigo Bank allows 6 months for an established home and 12 when you’re building. Some non-bank lenders go to 24 months, at higher rates.
- How interest is handled. Westpac, St.George and Bendigo add the interest to the loan, so you make no repayments on the bridge. ANZ and CBA want interest-only repayments, so your income has to cover interest on the total debt while you sell.
- Rate step-ups. Published bank bridging rates sat between about 9.3% and 10.3% in October 2026, with some non-bank lenders advertising lower starting rates. Westpac’s rises by a full point after the first three months, which is why a slow sale costs more than you’d expect.
- Extensions. ANZ says it generally won’t extend. Past the term, lenders can apply higher rates, push for a price cut or a change of sale method, and ultimately require a sale.
- Availability. Suncorp no longer offers a bridging loan. Some lenders only bridge for existing customers or owner-occupiers.
Picking the lender whose structure fits your sale, not just the lowest rate, is most of the job. Talk it through with us before you make an offer.
Decision guide
When a bridging loan is the wrong move
Bridging is the most flexible option. It’s also the most expensive. Before recommending one, we check whether one of these does the job for less.
If your home is already under contract and only the timing is out…
Ask for a longer or matched settlement on the new purchase. It costs nothing if the seller agrees. If the deposit is the only problem, a deposit bond can stand in for it, for a fee of roughly 1.5% to 3.3% a year of the bond amount.
If the market is slow or you’re unsure what your home will fetch…
Sell first, then rent briefly or negotiate a long settlement. You move twice, but you never carry two homes on a guess.
If the seller isn’t in a hurry…
A Queensland contract can be made subject to the sale of your home through a special condition. Sellers rarely accept it at auction or in a hot market, but in a quiet one it’s worth asking.
If you only need the deposit and costs, not the whole price…
Release equity from your current home as a separate loan. It’s cheaper than a full bridge if your income can carry it. Read how usable equity works.
If you’ve found the one and have strong equity…
Bridge. It’s what it’s built for, especially when the home you want won’t wait.
On the Coast
Three situations we see on the Sunshine Coast
Downsizing
You’re selling the family home and buying something smaller, often with little or no loan left over. If the sale will clear the whole bridge, a lender that adds interest to the loan works neatly, because the interest is paid from the sale. Some non-bank lenders offer a “no end debt” bridge, and at least one doesn’t ask for income documents when the sale will clear the whole loan. Helping the kids into their first home as part of the move? See our first home buyer loans guide.
Moving from interstate
The Sunshine Coast is Australia’s top regional destination for people relocating, attracting 8.8% of the country’s net internal migration in the year to March 2026 (Regional Movers Index). Selling in Sydney or Melbourne and buying here means two markets, two agents and a lot of travel. Bridging lets you secure the Coast home first, then sell down south without a deadline, instead of renting in between and moving twice.
Building your next home
You live in your current home while the new one is built, then sell once you move. Several lenders allow up to 12 months for construction. Count the time from land settlement to handover carefully, because builds run late.
Self-employed and upgrading? Bridging works on the same income rules as any other loan. See how lenders read business income on our self-employed home loans page. Owe the ATO? Read about home loans with tax debt.
The fine print
The tax and pension traps nobody mentions
These can cost more than the bridging interest, and the bank won’t usually raise them.
Capital gains tax: the six-month overlap
The ATO lets you treat both homes as your main residence for up to six months while you change over, as long as the old home was your main residence for at least three continuous months in the year before you sell, and you don’t earn income from it. Banks give you 12 months to sell. The tax rule gives you six. Take longer and part of the gain on one of the homes can become taxable. And don’t rent the old home out while it’s on the market without talking to your accountant first.
The Age Pension: your old home counts
If you buy first, there are no sale proceeds to exempt yet. Once your new home becomes your principal home, Services Australia assesses the old one under the assets test until it sells. After the sale, the proceeds you intend to put toward your new home can be exempt for up to 24 months. For pensioners, the order you buy and sell in can change your payments, so check with Services Australia or a financial adviser first.
Downsizer super contributions: a 90-day clock
If you’re 55 or over, you may be able to put up to $300,000 each from the sale into super as a downsizer contribution. It must go in within 90 days of receiving the sale proceeds, and the home generally needs to have been owned for 10 years. If the sale is clearing a bridge, work out with your adviser what’s left for super before settlement, not after.
General information only. We’re mortgage brokers, not tax or financial advisers, so confirm your position with your accountant or adviser.
Stamp duty
Stamp duty when you own two homes for a while
In Queensland you can usually still claim the home concession on your new home while you own your old one. The test is about moving in, not about having sold. You must move in within one year of settlement, a deadline that can’t be extended. You can’t sell the new home or rent all of it out before you move in or within a year after. The concession reduces the duty on the first $350,000 of the price, saving up to $7,175. Above that, general rates apply, so on a $1.2 to $1.4 million home the duty is roughly $42,000 to $54,000.
Confirm your duty with your conveyancer or the Queensland Revenue Office home concession page.
Before you sign
Six questions to ask about any bridging loan
- Is interest added to the loan, or do I pay it monthly? On the whole debt or just the bridge?
- Does the rate step up after a set number of months?
- How long do I have to sell, and what exactly happens on the first day after that?
- What sale price is the lender assuming? Its own valuation, or my agent’s estimate?
- What’s my peak debt as a share of both homes at month 6 and at month 12?
- If I sell for 5% or 10% less, can I still afford the end debt?
Those last two are the ones that catch people out. Ask us and we’ll walk you through all six for your situation.
Who you’ll deal with
Sunshine Coast brokers since 2008
Melissa Mann
Director & Senior BrokerIn lending since 2006, founded Thinking Big Finance in 2008, and an active property investor and developer. Credit Representative 522583.
Georgia
Mortgage & Finance BrokerWith Thinking Big since 2016, focused on self-employed and more complex loans. Credit Representative 508451.
“They went above and beyond where no other bank would budge on my situation. Truly can’t thank them enough.”
Helen · Thinking Big Finance client · More reviews
Questions
Bridging loan questions
What is a bridging loan?
A short-term home loan that lets you buy a new property before you sell your current one. The lender holds both homes as security, usually for 6 to 12 months, and the sale proceeds pay the bridge down to an ordinary home loan.
How long can a bridging loan run?
Most major banks allow up to 12 months to sell. Some, like Bendigo Bank, allow 6 months for an established home and 12 months when you’re building. Some non-bank lenders offer up to 24 months at higher rates.
What are peak debt and end debt?
Peak debt is the most you owe while you hold both homes: your current loan, the new purchase, costs and interest. End debt is what’s left after your old home sells. Most lenders assess your income mainly against the end debt.
Do I make repayments on a bridging loan?
It depends on the lender. Westpac, St.George and Bendigo add the interest to the loan, so there are no repayments on the bridge. ANZ and CBA require interest-only repayments, so your income must cover them while you sell.
How much equity do I need for a bridging loan?
Enough that your peak debt, including interest, stays within about 80% of the combined value of both homes. Westpac, NAB and Bendigo Bank cap it there and other lenders set similar limits, so the more equity you hold in your current home, the more you can bridge.
What are bridging loan interest rates in 2026?
Published bank bridging rates were roughly 9.3% to 10.3% in October 2026, and Westpac’s rate rises after the first three months. Your end debt then moves to normal home loan rates.
What happens if my house doesn’t sell in time?
Lenders may charge a higher rate, ask you to cut your price or change how you’re selling, and can ultimately require a sale. Some will extend; ANZ says it generally won’t. Price your home realistically from the start.
Can I get a bridging loan to build a new home?
Yes. Several lenders, including Westpac, St.George and Bendigo Bank, allow bridging for land and construction, generally up to 12 months, so you can live in your current home while the new one is built.
Can I claim the stamp duty home concession if I haven’t sold yet?
Usually, yes. In Queensland the home concession depends on moving into the new home within one year of settlement, not on having sold your old one. You must not sell or rent out all of the new home before moving in or within a year after.
Is a deposit bond cheaper than a bridging loan?
Usually, but it does less. A deposit bond only replaces the deposit when you sign. You still need the full purchase funds at settlement, so it suits buyers whose sale is already locked in.
Do I pay capital gains tax if I own two homes while bridging?
Not usually, if you sell within six months. The ATO lets both homes be treated as your main residence for up to six months during a changeover. If the old home takes longer to sell, the exemption covers both only for the last six months, so part of a gain can become taxable.
Does a bridging loan affect the Age Pension?
It can. Once your new home is your principal home, your old home is assessed under the assets test until it sells. After the sale, proceeds intended for your new home can be exempt for up to 24 months. Check with Services Australia before you buy.
Got a home in mind? We’ll run your peak debt, end debt and the best-fit lender before you make an offer.
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