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Bridging Finance NZ

 

A bridging loan is usually used to buy a house before you sell the home you’re currently living in. It ties you over for a short period that while waiting for the sale, allowing you to afford any mortgage repayments associated with both properties. It can also be used for a deposit on your new home, which can be paid back once your existing home is sold.
But when you’re working with Alternate, we can also offer you a bridging loan when you’re purchasing and selling industrial equipment or vehicles; it’s not just for purchasing a property.

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How Bridging Finance Works

Some lenders will take over the mortgage when offering a bridging loan, and you’ll accrue interest until you start making payments or settle the amount in full upon the sale of your property. A bridging loan is a short term solution that is usually for only 3 – 6 months while you sell your existing property or equipment. You pay interest for the period on the amount you’ve borrowed, much like you’d pay on a normal loan.

Get bridging finance from Alternate Finance with the freedom of negotiating your term and repayments. You’ll receive an email with an annual interest rate ranging between 10.95 to 17.95% p.a. for your short term loans.

For further details, please contact us for a one on one consultation, or view our loan default interest rate guide, please view our rates and fees here.

If you want a bridge loan from Alternate, it’s important that you understand our terms of trade in detail. We are responsible lenders and want you to know the conditions. When making an application for your equipment loans, you’re granting Alternate Finance Limited permissions to store your sensitive information. Our company will endeavor to keep all information on the Alternate Finance website accurate and up to date, relating to your bridging loan for your investment. If you find an error, and if brought to our attention in writing, we will rectify it within a reasonable timeframe. For more information relating to the terms of your financing, please view this page.

Your details are data protected when applying for an bridging finance, as we have end-to-end encryption on all of our webforms. All loan information you provide will be treated confidentially and you can have confidence that your loan application will remain secure.

Get bridging finance from Alternate Finance with the freedom of negotiating your term and repayments. You’ll receive an email with an annual interest rate ranging between 10.95 to 17.95% p.a. for your short term loans.

For further details, please contact us for a one on one consultation, or view our loan default interest rate guide, please view our rates and fees here.

If you want a bridge loan from Alternate, it’s important that you understand our terms of trade in detail. We are responsible lenders and want you to know the conditions. When making an application for your equipment loans, you’re granting Alternate Finance Limited permissions to store your sensitive information. Our company will endeavor to keep all information on the Alternate Finance website accurate and up to date, relating to your bridging loan for your investment. If you find an error, and if brought to our attention in writing, we will rectify it within a reasonable timeframe. For more information relating to the terms of your financing, please view this page.

Your details are data protected when applying for an bridging finance, as we have end-to-end encryption on all of our webforms. All loan information you provide will be treated confidentially and you can have confidence that your loan application will remain secure.

Did You Know?

Bridge Loan Interest Rates

Bridge Loan Interest Rates

If your loan is a large sum of money, generally, you're given low-interest rates in comparison to smaller values. Alternate provides low-interest rates of 10% through to our higher interest rate at 17.95%, and these are negotiated on a case by case basis depending on the term and the value of the bridging finance.

Security For Bridging Finance

Security For Bridging Finance

Usually, your property, whether it be a house or a vehicle, or equipment, is security in itself, so you don't need to worry about providing security. In the unlikely event that things go horribly wrong, like a housing market crash, a finance company will have an interest in the item you're selling and buying.

Bridge Loans And Renovations

Bridge Loans And Renovations

Often people won't have the funds to renovate their home before selling it, but in order to get top dollar, they can apply for a bridge loan that allows them to make alterations and put the property on the market in a short period of time. This is similar to loans for builders and construction loans for people that like to flip houses.

Example of Bridging Finance

Example of Bridging Finance

If you are buying a house for $500,000, and you have a $30,000 deposit in cash, plus $200,000 equity in your current property, you'll need your deposit topped up to $100,000 to buy the new property (20%). You'll borrow $70,000 as a bridging loan from Alternate. You'll accrue interest on the $70,000 for the duration that you have the loan. Once you sell your existing property and release the $200,000 equity, you'll repay the Bridge loan of $70,000 + any interest remaining from sale profits.

Contact our friendly team for more information on bridging loans