What is a short term bridging loan?
A short term bridging loan, gives you access to the equity you have locked up in your property, that you are in the process of selling, under unconditional offer or have recently sold. Also known as settlement advances.
What situations can settlement advances be used?
Short term bridging loans, vendor paid advertising or settlement advances, can be used in two different situations:
- Prior to sale - via our vendor paid advertising product - preparing the property for sale, such as maintenence and repairs, as well as covering associated costs, such as property listing fees.
- Prior to settlement - settlement advances - when the property is under offer or has recently sold, but you are awaiting settlement but need access to the cash before the settlement date. Where you may need to put down a deposit on another property, bidding on a property at auction or the outright purchase of another property.
Can settlement advances be approved on the same day of application?
Yes, they can. When applying online, select 24 hours, so we know the need is urgent. We will then call you back as soon as we can, during regular office hours. When you complete your application online (takes just a few minutes), we will tell you what documents you need to have ready, so that your advance can proceed smoothly.
Examples of documentation required:
- Contract of Sale - (if applicable) for the property you are selling or advancing against
- Mortgage Statement - PDF document issued by your mortgage provider
- Solicitor or Conveyancer - (if already arranged) their name, company and contact details
- Identity Verification - A clear, colour photo of the front and back of your Driver's Licence
Are there any faster loan alternatives to bridging loans?
Yes, there are. Bridging loans from banks, can take anywhere from 2 to 3 weeks to get approved, or rejected. Settlement advances or short term property loans, are faster than bridging loans, as they take advantage of the fact that the property is soon to be sold and the funds can be easily repaid at settlement. Settlement advances can be paid on the same day, 24 or 48 hours, in situations where you need access to your funds quickly.
See fast bridging loans for a quicker bridging loan solution via a settlement advance loan.
See Bridging Loan Alternatives for other property lending options.
How long does the application take?
The application with us should take less than 5 minutes. We just need some details about your advance needs, the property you are selling or have already sold, and of course, your details, so that we can contact you, to complete your advance.
How much could I borrow or advance with a short term settlement advance?
The amount you can advance with us, will depend on the amount of available equity1 you have locked up in your property, that you would like to access.
If the property you are selling, is pending settlement at $700,000 and you have $200,000 left to repay on your mortgage, then your equity in the property is $500,000. Your available equity would be 80% of that $500,000, which would be $400,000. You could potentially advance up to $400,000 with us, in as little as 24 hours.
The advance is set up for an initial period of 60 days, which can later be extended for an additional 30 days or longer.
The maximum advance amount1 is $5,000,000.
How much will a settlement advance cost me?
This will depend on how much you are looking to advance with us. See the Repayment Costs Chart for some examples.
Explore our loan calculator and learn more about our Costs and Charges on our designated page.
When do I have to repay my settlement advance?
Your advance will be set up to run for an initial 60 day period. This works well in most cases, but we understand that in some situations, longer periods may be necessary. In these situations, please speak with us and we can advise on a case by case basis.
What documents or details will I need to provide?
See below for a list of common document requirements. The actual documents needed will depend on the stage you have reached, selling your property.
- Contract of Sale - (if applicable) for the property you are selling or advancing against
- Mortgage Statement - PDF document issued by your mortgage provider
- Solicitor or Conveyancer - (if already arranged) their name, company and contact details
- Identity Verification - A clear, colour photo of the front and back of your Driver's Licence
How can I speed up my advance approval and funding?
To help speed up your application, complete the short enquiry form above, which should only take 3 or 4 minutes, give us your advance details (make sure to select '24 hours'), contact details and property details straight away. We will give you a call back, so be ready to accept a phone call from us or give us a call directly to 1300 893 199, during office hours.
Can I get a loan to buy a property before my house sells?
Yes, you could1. If you have sold your property and are awaiting settlement, you could get access to the equity you have built up in the property1, as a short term property loan, allowing you to purchase, or put down a deposit on your next property.
Should I sell my home or buy a new home first?
The ideal situation is where you can align the selling of your old property with the purchase of a new property. However, things don't always work out the way we would like them to. If you don't have a deposit handy, apart from the equity in your home, it makes finding a new property difficult. To give you additional flexibility, you could use a settlement advance1. With a settlement advance, it could give you access to the available equity in your property, allowing you to put down a deposit on, or buy, a new property quickly, without having to wait for the settlement date of your old property. This way, you can ensure you don't miss out on the property you want, just due to cash flow issues.
How do I get a short term loan for property repairs before I sell my home?
Settlement advances can help you with that. Click on Get Started, above and complete the short form.
How long is a settlement advance loan for?
Settlement advances are set up for an initial 60 day period. If you need the advance for a longer period, please let us know.
Can I get a short term property loan?
If you currently own (or have a mortgage) your own property, with a settlement advance, you could get access to a short term property loan1. Providing you are intending on selling or the property is under unconditional offer and you are awaiting settlement.
What parts of Australia do Settlement Advances cover?
Settlement Advances service the whole of Australia.
We have offices in Perth, Sydney, Melbourne and Brisbane but can offer settlement advances on your property wherever you live in Australia.
See also Bridging Loans in Australia