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Short-Term
Bridging Loans

Short-term property finance, sized to the gap, structured around your exit, settled in days.

A short-term bridging loan is property-secured funding for the narrow window between two events - the purchase of a new asset and the sale of an existing one, the acquisition of a site and the arrival of construction finance, or the resolution of a settlement gap when timing matters more than cost. At Commercial Property Funding, short-term bridging is structured around the exit strategy itself, not borrower serviceability - which is why the loan can settle in days rather than weeks.

Overview

  • Loan SizeUp to $7 million
  • Maximum LVRUp to 75% LVR
  • Loan Terms1 to 12 months
  • Loan TypesClosed bridging (sale date confirmed) or open bridging (sale date pending)
  • Property SecurityVacant land, houses, units, duplex, or completed developments
  • Loan Structure1st or 2nd mortgage - keep your existing bank loan in place
  • RepaymentsNo monthly debt servicing - interest can be capitalised
  • VerificationAsset-led - no tax returns or full serviceability test
  • Settlement SpeedLetter of Offer in 48 hours; settlement within 7 days of executed docs
  • LocationAvailable across all Australian states and territories
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A short-term bridging loan is property-secured funding for the narrow window between two events - the purchase of a new asset and the sale of an existing one, the acquisition of a site and the arrival of construction finance, or the resolution of a settlement gap when timing matters more than cost. At Commercial Property Funding, short-term bridging is structured around the exit strategy itself, not borrower serviceability - which is why the loan can settle in days rather than weeks.

How Short-Term Bridging Works

Short-term bridging finance differs from a standard property loan in three structural ways. The term is short - typically between one and twelve months. There are no monthly repayments - interest is capitalised into the approved loan amount and repaid in full at the end of the term. And the assessment focus is on the exit strategy - the agreed event that repays the loan - rather than on the borrower's ongoing ability to service monthly debt. Together these three differences are what make bridging fast, flexible, and suited to time-critical scenarios.

Short-term bridging falls into two broad structures. A closed bridging loan is used when the exit is already confirmed - the existing property is sold, an unconditional contract is signed, and the settlement date is known. The loan is sized and termed to match the confirmed exit. An open bridging loan is used when the exit is planned but not yet confirmed - for example, the existing property is being prepared for sale or a refinance is being arranged. The loan term is structured to give time for that exit to be finalised, with a longer buffer than a closed structure typically needs.

At Commercial Property Funding, both structures are assessed the same way - focused on the property securing the loan, the equity position, and the credibility of the exit. Tax returns and full serviceability tests aren't required. The loan can sit alongside an existing first mortgage as a second mortgage, leaving your current bank facility in place. Both structures settle quickly: a no-cost, no-obligation Letter of Offer in 48 hours, settlement within seven days of executed loan documents.

Why Borrowers Use Short-Term Bridging

  • imgLoan terms from one to twelve months, sized to the gap
  • imgClosed and open bridging structures available
  • imgExit-led assessment - no monthly serviceability tests
  • img No monthly repayments - interest capitalised through the term
  • img1st or 2nd mortgage - no need to refinance an existing bank loan
  • imgAsset-led - no tax returns or full financial review required
  • imgLetter of Offer in 48 hours, settlement within 7 days of docs
  • imgAvailable to company and trust borrowers

When Short-Term Bridging is Used

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Closed Bridging - Confirmed Exit

The existing property is under contract or already sold, and the loan term matches the known settlement date.

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Open Bridging - Exit Planned, Not Confirmed

The exit is being prepared - listing, refinance, or a transaction in progress. The loan term carries a exit timing buffer.

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Settlement Gap Bridging

New property settlement locked in, but proceeds from the existing sale arrive later. Short-term bridging covers the gap.

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Bridging to Long-Term Finance

Long-term facility is arranged but won't settle in time. Short-term bridging holds the position until the longer facility is ready.

Need Short-Term Property Finance Fast?

Submit your scenario for assessment or speak with our team about short-term bridging finance for your next deal.

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What We Need to Assess a Short-Term Bridging Request

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Borrower entity details - company, or trust
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Property details - security being offered for the bridging loan
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Loan amount required and the timing of the funding need
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Exit strategy - sale of asset, refinance, or business event
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Sale contract for closed bridging, or marketing plan for open bridging
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Identification documents for the borrower entity

frequently asked questions

A short-term bridging loan is property-secured finance with a term typically between one and twelve months, used to cover a temporary funding gap. It's structured around the exit strategy - the agreed event that repays the loan - rather than the borrower's ability to service monthly debt.

Closed bridging is used when the exit is confirmed - for example, an unconditional sale contract is signed and the settlement date is known. The loan is termed to match. Open bridging is used when the exit is planned but not yet confirmed - for example, the existing property is being prepared for sale. The loan term carries a longer buffer to allow the exit to finalise.

Loan terms can be structured from as short as one month where the exit is imminent and confirmed, through to twelve months for more complex scenarios. The term is set to match the time the exit strategy realistically needs.

Because there's no monthly debt servicing on a bridging loan, the entire repayment is made at the end of the term from the agreed exit. That makes the credibility and timing of the exit the central assessment question. Common exits include the sale of an existing property, a refinance to a longer-term facility, or the receipt of contracted business proceeds.

No monthly debt servicing is required. Interest is capitalised into the approved loan amount, so the full balance is repaid at the end of the term from the agreed exit.

No. The bridging loan can be structured as a second mortgage that sits behind your existing first mortgage, leaving the bank loan untouched. This is especially useful if your current loan is on attractive terms you don't want to lose.

Up to $7 million, at up to 75% of the value of the property securing the loan, inclusive of any existing first mortgage. The exact amount depends on the property type, location, and the structure of the deal.

A no-cost, no-obligation Letter of Offer can be issued within 48 hours of a complete submission. Settlement typically follows within seven days of executed loan documents - fast enough to handle most auction settlements, time-critical acquisitions, and gap-bridging scenarios.

Pricing is structured around the deal - the property security, loan size, term, and exit strategy. Indicative pricing is provided on request and confirmed in the no-cost, no-obligation Letter of Offer. Contact our team for current terms on your specific scenario.

Yes. Short-term bridging is available to individual, company, and trust borrowers - including special-purpose vehicles structured for a specific deal.

Each scenario is reviewed on its merits. Where the exit strategy remains credible but needs more time than the original term, options to extend or refinance can be discussed directly with our team. The exit strategy is part of every assessment, so we plan for this upfront where the timing is uncertain.

Ready to Bridge a
Short-Term Gap?

Funding solutions designed for property developers, investors, and brokers across Australia.

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