Lender review
Is Bridgit a good bridging loan lender?
The short answer
A specialist bridging lender for owners who want to buy the next property before selling the current one. Bridgit's loans carry no monthly repayments and no early exit fees, and the interest is built into the loan. The price of that convenience is a firm exit: the loan must be repaid, usually from the sale, within its term.
How we rate them
Our assessment, not a lender claim. Five dimensions, scored out of five, revisited when the policy-checked date changes. Rate & fees is judged on the pricing borrowers actually transact at; we have not verified Bridgit pricing for this draft, so this score is cautious.
- Rate & fees competitiveness
- 3/5
- Approval speed
- 4/5
- Technology & apps
- 3.5/5
- Product & policy flexibility
- 3/5
- Service
- 3/5
Bridgit calculates interest in advance and adds it to the loan, so there are no monthly repayments while you sell. Set-up fees and pricing by loan size and gearing apply, and we run them on the actual deal.
Can I get a loan with them?
Probably, if you own a property you intend to sell, you are buying another, and there is a clear plan to repay the loan from the sale or by refinancing. Individuals, companies and trustees can borrow. Construction and second-mortgage deals are out.
Bridgit asks for a realistic exit strategy and evidence of the likely sale price and timing. For people upsizing, the end debt after the sale is assessed for serviceability; for downsizers, the lender describes no income assessment, although some income evidence may still be requested for responsible lending purposes. Borrowers need a satisfactory credit history over the past five years and no bankruptcy in the past seven. Company borrowers may be asked for a general security agreement and director guarantees. A separate commercial bridging range is for companies and trusts only and is never for personal use.
What they will and will not do
Facts from the lender's current policy, not judgements.
- No: Australian Government 5% Deposit Scheme
- No: Help to Buy
- Yes: Bridging finance
- Yes: Commercial bridging (company or trust)
- Yes: Equity release
- Yes: Debt consolidation
- Yes: Trust or company borrowers
- No: Construction loans
- No: Fixed rates
- No: SMSF lending
- No: Non-resident income
Pros and cons
What works
- No monthly repayments during the bridge: interest is calculated up front and added to the loan, so the borrower is not paying two loans while selling.
- No early exit fees, and interest is recalculated if the loan is repaid early.
- Upsizers are assessed on the debt left after the sale, not the peak debt; downsizers face no income assessment on the lender's description.
- Conditional approval within about a day for residential applications, with supporting documents not needed upfront.
- Single or multiple security, and companies and trustees can borrow.
What doesn't
- A mandatory exit strategy: the loan must be repaid from a sale or a refinance, and a stalled sale is the real risk.
- Variable rate only, so there is no fixed rate to plan around.
- No construction lending and no second-mortgage security.
- Higher gearing is limited to metro locations with a signed contract of sale.
- Some points in the lender's documents conflict, such as the loan caps by term and the set-up fee schedule, so we confirm them on each deal.
What are they distinctly good at?
Buying before selling without carrying two sets of repayments. Bridgit exists for the owner who has found the next home and has not yet sold the current one, including downsizers and retirees.
The range runs from residential bridging on 12 or 24-month terms to commercial bridging for companies and trusts, plus a long-term interest-only equity release loan for older borrowers. For our clients the residential bridge is the relevant product. Bridgit's loans are sold to us under the Connective Bridge label, so the lender's name appears on the licence and the Connective name on the product.
Who it suits, and who it does not
A good fit if
- Upsizers and downsizers who have found the next home before selling.
- Owners who need to renovate or settle on a long timetable before selling.
- Companies and trusts needing short-term commercial finance.
Look elsewhere if
- Anyone without a credible plan to sell or refinance within the term.
- Borrowers who want a fixed rate or a long-term repayment loan.
- Anyone funding a construction project.
- People with a recent bankruptcy or a weak five-year credit history.
Our verdict
A purpose-built bridge for people caught between two properties. The structure is clean: interest is built into the loan, nothing is repayable monthly and early repayment costs nothing, so the pressure comes off the sale timetable. The trade-off is the exit. Bridging only works when the sale or refinance happens, and the lender requires a clear plan for it. We assess that plan, the end debt and the cost of the set-up fees before recommending it, and compare it with simply extending settlement or using a standard loan where that works.
We can arrange loans with this lender, through Connective Bridge, the Connective-branded range Bridgit funds.
Comparable lenders
Lenders that solve a similar problem, and that we can arrange.
Lender assessments are our own opinion, based on the policy and product terms in force on the policy-checked date shown above, and are not a recommendation.
Not sure whether this is the right lender for you?
Fifteen minutes, no obligation. Or check where your current rate sits first.