Bridging Finance, closing the gap on property deals

Written By Kim Manunui

Bridging finance can be a fast, flexible solution to secure property before you’ve sold your current property allowing you to upgrade with certainty.

Whether to purchase your next owner-occupied home, for property investors, developers or flippers, bridging finance can provide access to quick capital to purchase property, sections for development, renovations or opportunities requiring fast settlement providing speed, flexibility and confidence during transitional periods.

Available through main bank and non-bank lenders, they are typically interest only with capitalised interest ( where you settle it all at the end with no servicing required ) available with LVR’s from 80% with terms to suit up to 12 months with the ability to roll if required. With a strong exit strategy in place to either settle or refinance long term, they can be applied to residential, commercial, lifestyle and rural property.

For homeowners, bridging finance can remove the pressure of having to sell before securing their next home. In competitive markets, many buyers risk missing opportunities because sale and purchase dates simply do not align. Bridging loans provide temporary funding that allows borrowers to move quickly while waiting for settlement funds from their current property.

There are generally two types of bridging finance: closed bridge and open bridge. Closed bridge is where the sale date of the existing property is already confirmed, making the loan lower risk for lenders. Open bridging applies when a property has not yet sold, which can involve stricter lending criteria and higher interest costs.

While bridging finance offers flexibility, it is not without risks. Interest rates are typically higher than standard home loans due to the short-term nature of the lending and fees apply. Borrowers must also consider holding costs carefully, particularly in slower property markets where homes may take longer to sell.

Financial advisers recommend borrowers seek professional guidance before entering any bridging arrangement. Understanding repayment timelines, contingency plans, and total borrowing costs is critical to ensuring the facility is fit for purpose and fulfils requirements.

With several funders to choose from and playing to the strengths of individual providers, talk with Infinance to secure funding for your next project.

For more on the above click on the link below.

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Kim Manunui

Hi, I’m Kim and I work with a great team to help individuals, as well as small and not so small businesses get their message, product and services to the world using digital media and creating wonderful websites that don’t cost the earth.

I was born in Canada, and grew up around Vancouver and the mountains of British Columbia. My love of pristine environments led me to New Zealand and eventually to the mountains, lakes and rivers of the central North Island which is home. My family’s heritage is here, and it’s from here that Korio traverses the planet.

The digital world is never static and neither are we.

And I say ‘we’ because I work with an awesome group of talented people who I gather together as required to complete a project.  Whatever your business, not-for-profit or individual needs are we gather the best team to get the job done.

Collaboratively we are creative, share sustainable values and work hard for great outcomes because that’s the buzz of satisfaction that drives us.

If you have an audience and market to reach, we can make that happen. Creative design, words that work and smart behind the scenes stuff that cuts through the online noise. We’ll design your website and then build it. We’ll manage the content as well as all your hosting needs. We can handle your online advertising so you get noticed,
and we’ll manage your social media presence so you get the clicks, likes and engagement to grow your business. All within the budget you set, because none of this needs to cost the earth.  And the job doesn’t stop when your website goes live. We are your virtual business partner.

https://www.korio.co.nz
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