What is the difference between peak debt and end debt?

Peak debt is the total you owe while holding both properties, combining the new purchase and the remaining balance on your current home. End debt is what is left once your current home sells and that sale amount is applied against the peak debt.

Do I need to have my current home listed before applying?

Many lenders want to see your property is at least being prepared for sale or already on the market, since the facility relies on that sale to reduce the debt.

What if my house does not sell in time?

Most bridging facilities have a set term, often six to twelve months. If the sale drags past that point you may need to refinance the bridging loan or extend it, which a broker should discuss with you before you commit.

Bridging finance for buying before you sell

Buying your next home before your current one has sold creates a funding gap that a standard home loan does not cover. Bridging finance is structured specifically for this: it lets you draw on the equity in your existing property to fund the purchase, with the loan reducing once your current home sells. This is a distinct product from a straightforward refinance and needs a broker who can model both the bridging period and the end debt you will be left with.

A broker working in this space should walk through what happens if your current property takes longer than expected to sell, how the peak debt is calculated during the bridging period, and whether a lender requires your existing home to already be listed before approving the facility.

Buying a new home ahead of your current sale settling
Understanding peak debt versus end debt
Lender requirements around listing your current property
Contingency planning if the sale takes longer than expected

What it costs

Bridging loans generally carry a higher interest rate than a standard mortgage during the bridging period, reflecting the short-term and higher-risk nature of the facility. Costs are also affected by how much equity you hold in your current property and how quickly you expect it to sell.

Top 3 by our score

Ranked from our published scoring of public Google reviews for refinancing.

1. Varlo Finance
5.0★ · 773 reviews

95
2. Aussie Home Loans Joondalup
5.0★ · 384 reviews

95
3. Tusk Finance
5.0★ · 338 reviews

95

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FAQ

What is the difference between peak debt and end debt?: Peak debt is the total you owe while holding both properties, combining the new purchase and the remaining balance on your current home. End debt is what is left once your current home sells and that sale amount is applied against the peak debt.
Do I need to have my current home listed before applying?: Many lenders want to see your property is at least being prepared for sale or already on the market, since the facility relies on that sale to reduce the debt.
What if my house does not sell in time?: Most bridging facilities have a set term, often six to twelve months. If the sale drags past that point you may need to refinance the bridging loan or extend it, which a broker should discuss with you before you commit.

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