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Bridging loan calculator.

A bridging loan covers the gap when you buy your next home before selling your current one. For a few months you carry the debt on both properties at once. Enter what your home should sell for, what you owe, the price of the new home, your costs and how long the sale might take. The calculator shows your peak debt, the interest added while you bridge and the debt left once the sale settles.

What do you expect your current home to sell for?

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How this calculator works.

  1. On the day the new home settles, your debt is what you still owe on your current home plus the new purchase price and your costs.
  2. Interest is charged monthly on the whole balance and added to the debt (capitalised). No repayments are made while you bridge, so the interest compounds.
  3. The peak debt is the balance at the end of the bridging period, just before your current home sells.
  4. When the sale settles, all of the proceeds repay the debt. What is left is the debt on your new home, shown with a repayment over 30 years at the same rate. If the sale price is more than the peak debt, the difference comes back as cash.

What it assumes

  • The starting scenario is a home worth $800,000 with $400,000 owing, buying a new home for $1,000,000, with $60,000 of buying and selling costs and a bridge of 6 months.
  • The bridging rate starts at 6.44% (the RBA average new variable rate for Jul 2026, adjusted for the 30 Sep rise). Bridging loans are often priced above standard home loans, so enter the rate you are quoted.
  • Costs are funded by the bridging facility rather than from savings.
  • The repayment on the remaining debt is worked out over 30 years at the same rate.
  • Assumptions last reviewed 25 September 2026.

Questions people ask.

How does a bridging loan work?

A bridging loan (or bridging finance) lets you settle on a new home before your current one has sold. The lender takes security over both properties, adds the new purchase to your existing debt and gives you a set period, often several months, to sell. When your home sells, the proceeds repay the bridging debt and what remains becomes your ordinary home loan.

Is bridging loan interest capitalised?

Often it is, meaning it is added to the loan rather than paid each month, which is what this calculator assumes. Some lenders require monthly payments instead. Ask which applies to your loan, because capitalised interest compounds.

How long can I bridge for?

Lenders set their own limit, commonly around six to twelve months. The calculator lets you test between 1 and 18 months so you can see how a slow sale adds to the cost.

What is the difference between an open and a closed bridging loan?

A closed bridging loan is for when you have already exchanged contracts on the sale of your current home, so the end date is known. An open bridging loan is for when it is not yet sold, which is less certain for the lender.

What happens if my home sells for less than I expected?

The debt left after the sale is higher. With the starting numbers the peak debt is $1,507,647 and about $707,647 would remain after a sale at $800,000. Lower the sale price to test a weaker result.

What costs are not included?

Lender establishment and valuation fees, and any monthly fees on the facility, are not included. The costs you enter should cover stamp duty, legal fees, agent commission and moving. The stamp duty calculator can estimate the duty.

More calculators.

Bridging Loan Calculator | Siare