How fast can a bridging loan settle in Sydney?

A bridging loan may settle within 3–7 business days, subject to valuation, documentation, lender approval and transaction complexity.

What is the maximum LVR?

Bridging finance may be available up to 75% LVR, depending on the property, loan structure, borrower circumstances and exit strategy.

What happens if my property does not sell?

The exit strategy must be reviewed. Refinancing or an extension may be considered depending on the equity position and lender approval.

Can I capitalise interest?

In many scenarios, interest can be added to the loan balance and repaid when the facility exits, subject to the loan structure and available equity.

Are bridging loans regulated?

Consumer-purpose lending may fall under Australian consumer credit laws. Genuine business or investment-purpose finance may be treated differently.

Can self-employed borrowers qualify?

Yes. Self-employed borrowers may qualify where the security, available equity and proposed exit strategy satisfy the lender.

What properties qualify?

Eligible security may include residential, commercial and investment property across metropolitan Sydney.

Is bridging finance suitable for SMSF property?

It may be suitable in some circumstances, subject to the transaction structure, lender requirements and applicable legal and compliance obligations.

Bridging Loans Sydney

We arrange eligible short-term property-secured finance for transactions in Sydney and across New South Wales. Facilities are placed with bank, non-bank and specialist lenders according to the transaction. What can be borrowed, at what LVR, over what term and at what price is determined by the security offered, the purpose of the funds, the borrower's circumstances and how the facility is to be repaid.

Sydney transactions raise timing questions that other markets do not, because New South Wales has its own rules on cooling-off, contract exchange and when a sale actually becomes binding. Those rules affect how quickly you need finance certainty, and they are set out below.

When Sydney buyers use short-term finance

Buying before the existing home settles. Securing the next property while the current one is still on the market. See buying before you sell.
Bidding at auction, where the contract is unconditional and there is no cooling-off period. See auction bridging loans.
Moving quickly to exchange on a private treaty purchase, where delay carries a risk of being gazumped.
Covering a settlement timing gap where a purchase completes before a sale, or an approval has slipped. See settlement timing gaps.
Releasing equity from an existing Sydney property for an investment purchase or a business purpose.
Funding works before listing, where presentation is affecting the likely sale price.

The NSW cooling-off period

When you buy residential property in New South Wales, a 5 business day cooling-off period generally applies after contracts are exchanged. It starts as soon as you exchange and ends at 5pm on the fifth business day after the day of exchange.

Withdrawing during that window costs you 0.25% of the purchase price, which NSW Fair Trading illustrates as $250 for every $100,000.

The cooling-off period does not apply if:

You buy the property at auction, or
You exchange contracts on the same day as the auction, after the property has been passed in.

That second exclusion catches people out. A buyer who negotiates immediately after a property is passed in may assume they have the usual five days. They do not.

Off-the-plan purchases: 10 business days

Buying off the plan in New South Wales attracts a longer cooling-off period. NSW Government guidance states that off-the-plan buyers have a 10 business day cooling-off period, compared with the 5 business days that usually applies to an already constructed home. The 0.25% forfeit still applies if you withdraw, and the period may be waived only where a lawyer or conveyancer provides proper certification and explanation.

Two further off-the-plan protections are worth knowing. Deposits and instalments must be held by the stakeholder in a trust or controlled money account for the duration of the contract, which protects against developer insolvency. And a developer wishing to rescind under a sunset clause must generally apply to the NSW Supreme Court unless the buyer agrees, whereas a buyer may rescind without court approval where sunset conditions are not met.

For finance, the longer window helps but does not remove the underlying issue: an off-the-plan settlement can be years away, and a valuation at completion may differ from the contract price. That is a separate risk to the cooling-off question and should be planned for at the outset.

General information only, current as at the review date below. Cooling-off rules are subject to exceptions and can change. Obtain legal advice on your own contract before signing.

Section 66W certificates: waiving the cooling-off period

In New South Wales the cooling-off period can generally be waived by giving the vendor a section 66W certificate, often written simply as a 66W certificate. NSW Government guidance indicates the period may be waived only where a lawyer or conveyancer provides proper certification and explanation. The precise requirements, and whether waiving is appropriate at all, are matters for your own legal adviser.

Why it comes up. A vendor or agent may ask for a 66W certificate before accepting an offer, particularly on a competitive property or ahead of a scheduled auction. From the vendor's side it converts an exchange with a five day escape hatch into a firm sale. From yours, it removes your only route out.

What it means for finance. Where a 66W certificate is given, the cooling-off period is no longer available as a route out. That ordinarily means there is no window to fall back on if a lender declines, a valuation lands short, or approval takes longer than expected. The practical implication is that the finance position should be settled before signing rather than after.

That is the specific situation short-term property-secured finance addresses: it can allow a buyer to proceed with certainty on a timeframe a longer application process may not accommodate. Whether it is appropriate depends on your equity, your purpose and how the facility would be repaid.

Do not sign a 66W certificate without legal advice. Your solicitor has to certify the advice anyway, and their view on the specific contract matters more than anything on this page.

Gazumping in NSW, and what the government recommends

In New South Wales, a property sale is binding on the seller and buyer only when contracts are exchanged. Until that moment, an accepted offer is not a completed sale. NSW Fair Trading defines gazumping as occurring "when an agent or seller accepts an offer you make to buy a property at an agreed price, but they sell the property to someone else."

If it happens to you, the agent must refund your expression of interest payment in full. They are not obliged to compensate you for anything else you spent, including legal advice, inspections and finance costs.

NSW Fair Trading's own guidance on reducing the risk includes:

Having finance pre-arranged, with a 10% deposit ready
Obtaining and reviewing the contract early with a conveyancer or solicitor
Exchanging contracts quickly
Being aware of the 5 business day cooling-off period
Asking for written confirmation that your offer was passed to the vendor

The first and third of those are finance questions. A buyer who can move to exchange in days rather than weeks, with the deposit available, is in a materially different position to one waiting on a full application. That is the practical case for arranging your position before you start negotiating rather than after.

Peak debt and end debt: a worked Sydney transaction

Consumer bridging in Australia is ordinarily structured as a single facility secured over both properties. The lender refinances your existing mortgage and funds the purchase, producing a peak debt. When the outgoing property settles, the net proceeds reduce that balance to an end debt, which converts to a standard home loan.

Peak debt = existing mortgage + purchase price + purchase costs, less any cash you contribute
End debt = peak debt + capitalised interest, less the net proceeds of the sale

An owner-occupier is upgrading. The vendor wants a firm exchange and the existing home has not yet been listed.

Setting up the peak debt

Existing home value: $2,150,000, with a mortgage of $680,000
New purchase price: $2,900,000
Purchase costs including NSW transfer duty, assumed at $150,000
Cash contributed by the buyer: $100,000
Peak debt: $3,630,000
Combined security value across both properties: $5,050,000
Peak debt LVR: 71.9%

Moving to the end debt

Term: 6 months, interest capitalised, so nothing is payable while the sale campaign runs
Interest at 7.49% p.a. on the peak debt for 6 months: approximately $135,944
Existing home sells for $2,150,000. Agent and legal costs at 2.2%: $47,300
Net sale proceeds applied to the facility: $2,102,700
End debt: approximately $1,663,244
End debt LVR against the new property: 57.4%

The end debt then refinances to a standard home loan. An establishment fee, valuation and legal costs apply and are additional to the figures above.

The purchase costs figure is an assumption and NSW transfer duty should be calculated for your own purchase price. Rates, LVRs, fees and availability depend on the security properties, the loan purpose, borrower circumstances, valuations and lender assessment. All applications are subject to lender approval, eligibility criteria and responsible lending requirements.

Two things this structure makes clear. The peak debt LVR is measured across both properties, which is why a buyer with substantial equity in the outgoing home can support a purchase that looks unaffordable against the new property alone. And the end debt is the number that actually matters, because that is what you will be servicing once the dust settles. If the end debt is not comfortably serviceable on a standard home loan, the structure does not work regardless of how the peak debt looks.

More on how these facilities are built in peak debt explained and residential bridging loans.

Exchange or auction date already set? Give us the address, the existing debt against it, the amount needed and the repayment plan. We will come back on what may be available and whether your date is achievable. Request an assessment.

How lenders size a facility

Indicative equity headroom = (property value multiplied by the lender's maximum LVR) minus the current loan balance

On a Sydney property valued at $2,150,000 with a $680,000 mortgage, a 75% ceiling would give $1,612,500 of total lending, indicating headroom of roughly $932,500 before costs. Ceilings commonly sit between 65% and 75%, and headroom is not the same as an approved amount: the purpose, the exit and the complete application all bear on what a lender will actually advance.

What moves it: the property type and location, how readily it could be sold, the strength and evidence of the proposed exit, the loan purpose, and whether more than one property is offered as security. Model your own position in the bridging loan calculator.

What we arrange for Sydney and NSW borrowers

Residential bridging for owner-occupiers buying, selling or moving between homes.
Commercial bridging where the purpose is genuinely business, investment or development rather than personal.
Second mortgage loans, which rank behind your current lender and leave a well-priced first mortgage undisturbed.
Facilities arranged through private and non-bank lenders, where a transaction falls outside mainstream lending policy or the timeframe does not accommodate a full application.

See all loan types. For pricing, see costs and fees.

Who we work with in Sydney

Owner-occupiers upgrading or downsizing, property investors, developers, business owners, self-employed borrowers and borrowers declined elsewhere. Eligibility across every borrower type is set out in who qualifies for a bridging loan.

Security is considered across metropolitan Sydney and regional New South Wales, subject to valuation and lender appetite. Outside the metropolitan area a lender weighs how readily the property could be sold, which usually means a reduced ceiling and a shorter list of funders, and on some holdings nothing available at all.

Timeframes

Where the security is straightforward and documentation is ready, settlement within days rather than weeks may be achievable, subject to valuation, lender assessment and legal completion. What ordinarily determines the timeframe:

Valuation access and turnaround, particularly where a property is tenanted.
Existing lender consent, where the facility is to rank behind a current mortgage.
Entity documentation, where a company or trust is borrowing.
Evidence of the exit. A proposed exit that cannot be evidenced is the most common reason a file does not proceed at all.

If you have an auction or exchange date, tell us at the first conversation. It changes which lenders can realistically be approached.

Frequently asked questions

How long is the cooling-off period in NSW?

Generally 5 business days for residential property. It starts as soon as contracts are exchanged and ends at 5pm on the fifth business day after the day of exchange. Withdrawing during that period costs 0.25% of the purchase price. It does not apply to purchases at auction, or where contracts are exchanged on the same day as an auction at which the property was passed in.

What is a 66W certificate?

A section 66W certificate is signed by your solicitor or conveyancer and given to the vendor to waive the cooling-off period. Vendors and agents often ask for one before accepting an offer on a competitive property or ahead of an auction. Providing one means the contract becomes firm on exchange, with no five day window to withdraw, so your finance position should be settled before you sign. Take legal advice first.

Should I sign a 66W certificate?

That is a question for your solicitor, who has to certify that they advised you on it. The general point is that a 66W certificate removes your ability to withdraw, so it is a decision to make once your finance and the contract have both been reviewed, not before.

What is gazumping and can it be prevented?

Gazumping occurs when a seller or agent accepts your offer and then sells to someone else. In New South Wales it is possible because a sale is only binding once contracts are exchanged. It cannot be prevented outright, but NSW Fair Trading's guidance on reducing the risk includes having finance pre-arranged with a 10% deposit ready, reviewing the contract early with a conveyancer, and exchanging contracts quickly.

If I am gazumped, do I get my money back?

An expression of interest payment must be refunded in full. The agent and seller are not obliged to compensate you for anything else you have spent, including legal fees, inspection costs and finance costs. That is one reason buyers try to shorten the period between offer and exchange.

Is there a cooling-off period at a Sydney auction?

No. A purchase at auction is unconditional, and cooling-off also does not apply where contracts are exchanged on the same day as an auction at which the property was passed in. Buyers intending to bid ordinarily confirm their finance position and have the contract reviewed beforehand.

How quickly can short-term finance be arranged in Sydney?

Can I borrow against a Sydney property if I live interstate?

Yes, and it is common. What governs the mortgage and the settlement is where the property sits, not where you do. Documents are executed electronically or through your legal representative and the valuation is arranged locally, so nothing requires you to be in New South Wales.

Do you arrange finance outside Sydney in NSW?

Yes, security across regional New South Wales is considered. What changes outside Sydney is how a valuer and a lender view saleability, so expect a more conservative ceiling and fewer funders willing to look at it. On some rural, remote or specialised holdings there may be nothing available. The address is the quickest way to find out.

Discuss a Sydney transaction

Send through the Sydney address, what is currently owing against it, the sum you need and the purpose, along with the event that repays it. If there is an auction date in the diary or a vendor asking for a 66W certificate, lead with that. It changes which lenders can realistically be approached.

Request an assessment, or read further in how bridging loans work.

See bridging loan locations across Australia, including Melbourne and Brisbane.