How the right bridging finance structure - and the right lender - let a family buy first, move on their own terms, and sell without the pressure.
Rated 5 from 31 Reviews
A family wanted to upgrade to a larger home — but on their own terms. They didn’t want the pressure of selling first and then scrambling to find somewhere to buy. They wanted to secure the new home, move when the time was right, and sell their existing property without a looming settlement deadline forcing their hand.
The challenge was straightforward in theory: fund a new purchase while still owning the existing home. In practice, it meant navigating a bridging finance market where lender policies vary enormously — and where the wrong choice early can unravel the whole transaction.
The clients’ existing lender couldn’t help. Their bridging finance policies didn’t suit the circumstances, which is more common than most people realise — many lenders are reluctant to offer bridging finance to new customers, or impose restrictions that make the structure unworkable.
Finding the right lender meant identifying one that would accept a new-to-bank customer needing bridging finance from day one, support the purchase before the existing property sold, provide sufficient borrowing capacity across both the bridging and ongoing loan, and offer certainty on property values and structure before any commitment was made.
The clients also carried a meaningful level of ongoing debt that would remain after the sale — making serviceability not just a checkbox, but a central part of how the transaction needed to be built.
Bank of Melbourne was identified as the right fit: one of few lenders willing to consider bridging finance for new-to-bank customers. From there, the transaction was built around three deliberate steps.
| Structure the Ongoing Loan First | Obtain a Lender Valuation Early | Maximise the Bridging Structure |
|---|---|---|
| Long-term debt outlasts the bridging period, so serviceability was maximised upfront to secure the largest possible allocation of lower-cost, long-term debt. | A formal valuation on the existing property was arranged before progressing the application, confirming equity, eliminating late-stage uncertainty and strengthening the credit submission. | Using the confirmed valuation, the transaction was structured to utilise Bank of Melbourne's policy: up to 85% of bridging security value with interest capitalised during the sale period. |
For this family, the result was the ability to secure their next home first, move on their own terms, and sell their existing property without unnecessary pressure. The right structure transformed what could have been a stressful transition into a smooth, well-planned upgrade. Bridging finance done well comes down to three things: knowing which lenders support new-to-bank customers, structuring both the bridging and ongoing debt correctly, and removing valuation uncertainty before it becomes a problem.
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TS Finance Broking ABN: 30 162 136 790, TS Finance Broking Pty Ltd ABN: 30 162 136 790. Credit Representative #436865 is authorised under Australian Credit License #389087.
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