15 May 2026 Bridging Loans in South East Melbourne: Your 2026 Guide

In 2026, South East Melbourne homeowners have more options than ever when it comes to buying their next home before their current one sells. Whether you’ve found the perfect property in Toorak – Glen Iris or St Kilda and need to act fast, bridging finance can make the move possible without the stress of timing two settlements perfectly.

The challenge many homeowners face is simple: you’ve found your next home, but your current property hasn’t sold yet. Auction clearance rates in South East Melbourne remain competitive, and the right property doesn’t wait for your settlement timeline to align.

EverLend helps South East Melbourne homeowners work through their bridging loan options across 60+ lenders, completely free of charge.

Here’s what you need to know about bridging finance before you approach a lender in 2026.

How does a bridging loan work?

A bridging loan lets you buy your next property before your current one sells, by temporarily combining both debts into a single loan. You make interest-only repayments during the bridging period, typically up to 12 months, and the loan reduces once your existing property settles. Your exact structure depends on your equity, timeline, and which lender you use – which is what we work through with you in a free consultation.

Government schemes and grants for bridging finance

• No specific government schemes: bridging loans are a private lending product and don’t qualify for first home buyer grants or stamp duty concessions.
• Stamp duty on the new property: payable at settlement regardless of whether you’re using bridging finance, though established homeowners typically don’t qualify for concessions.
• Capital gains tax considerations: if your current property is an investment, consult your accountant about CGT implications before proceeding.

How do mortgage brokers help South East Melbourne homeowners get bridging finance approved?

Step 1: Talk to us

Get in touch and we’ll assess whether bridging finance suits your situation and what options are available across our 60+ lender panel.

Step 2: Get your current property valued

We arrange valuations on both your existing property and the one you’re buying. This determines your available equity and maximum borrowing capacity.

Step 3: Compare lender structures

Different lenders structure bridging loans differently. Some use a single loan that increases temporarily, others use two separate facilities. We identify which structure works best for your situation.

Step 4: Submit your application

We handle the application process with your chosen lender, coordinating between both properties and managing the documentation requirements.

Step 5: Arrange settlement coordination

Your solicitor handles the legal side, but we work with them to ensure the bridging facility is ready when you need to settle on the new property.

Step 6: Monitor the bridging period

During the bridging period, we stay in touch to track your existing property’s sale progress and coordinate the loan reduction once it settles.

Common bridging loan mistakes in South East Melbourne

The biggest mistake homeowners make is assuming their current bank will offer the most competitive bridging solution. Bank policies on bridging finance vary significantly, and some won’t bridge at all depending on your loan-to-value ratio or property type. Shopping around often reveals better rates, higher borrowing limits, or more flexible terms.

The second mistake is underestimating the holding costs. During the bridging period, you’re paying interest on both properties plus any ongoing costs like rates, insurance, and body corporate fees. These costs add up quickly over 6-12 months, which is why getting your existing property sold promptly matters for your budget.

Who qualifies for bridging finance in South East Melbourne?

Most established homeowners qualify for bridging finance if they have sufficient equity in their current property. Lenders typically require at least 20% equity after accounting for both loans, though some specialist lenders work with lower equity positions. Your income needs to service both properties temporarily, which is where lender comparison becomes valuable.

• Minimum equity requirement: typically 20% across both properties after the bridging loan is in place.
• Income serviceability: you need to demonstrate capacity to service both loans during the bridging period, usually up to 12 months.
• Property types: most residential properties qualify, though some lenders have restrictions on units, particularly those in high-rise developments.
• Exit strategy required: lenders need a clear plan for how you’ll repay the bridge, typically through the sale of your existing property.

Frequently Asked Questions

How much does a bridging loan cost?

Bridging loans typically charge a premium above standard variable rates, often 1-2% higher than your existing home loan rate. You’ll also pay establishment fees, valuation costs, and potentially break costs if you’re refinancing your existing loan to access the bridging facility.

How long can I keep a bridging loan?

Most lenders offer bridging terms of 6-12 months, with some extending to 24 months in specific circumstances. The key is having a realistic timeline for selling your existing property and a backup plan if the sale takes longer than expected.

Can I use a bridging loan to buy an investment property?

Yes, but the structure differs from owner-occupier bridging loans. Investment bridging loans typically require higher equity and different serviceability calculations, and the interest is generally tax-deductible as an investment expense.

What happens if my current property doesn’t sell during the bridging period?

Most bridging loans can be extended, though this usually incurs additional costs and requires lender approval. Some lenders will convert part of the facility to a standard investment loan if needed, though this depends on your equity position and serviceability.

Do I need to sell my current property to pay out the bridging loan?

Not always. If you have sufficient income and equity, you might choose to convert your existing property to an investment and maintain both properties long-term. This requires meeting investment loan serviceability criteria and capital gains tax considerations.

Should I use a broker or go to my bank for bridging finance?

A mortgage broker, every time. Bridging loans are a specialist product, and lender policies vary dramatically in terms of rates, equity requirements, and loan structures. Your current bank may not even offer bridging finance, or their terms might not suit your situation compared to what’s available elsewhere.

Can I get a bridging loan if I’m buying off the plan in South East Melbourne?

Yes, though the timeline needs careful management. Off-the-plan purchases typically settle 12-24 months after purchase, so a standard bridging loan might not cover the full period. Some lenders offer extended bridging facilities for off-the-plan purchases, but alternatives like using existing equity through a construction loan might be more cost-effective.

Your Next Steps

Getting your bridging finance structure right is about more than finding a low rate. The right lender for your situation can mean better equity utilisation, more flexible terms, and a loan structure that fits your timeline – all things that vary significantly across our 60+ lender panel.

Ready to find out if bridging finance is the right option for your move? Contact Evelyn Clark for a free consultation or call 03 7036 3356. We’ll assess your situation across our 60+ lender panel and identify the most suitable bridging finance options for your equity position and timeline.