Bridging Loan Calculator

Peak Debt and End Debt

Peak debt is the highest amount owing while the two properties overlap. End debt is the loan remaining after the sale proceeds, less selling costs, reduce that balance.

This bridging loan calculator adds the existing mortgage, new property price, purchase costs and financed fees. It subtracts the cash contribution to find the debt at the start. If interest is added to the loan, that interest increases peak debt before the sale settles.

In the starting example, the existing mortgage is $400,000 and the new purchase is $900,000. Purchase costs of $45,000 and finance fees of $3,000 bring total funding to $1,348,000. A $100,000 cash contribution reduces starting debt to $1,248,000.

With six months of capitalised interest at 8.5%, peak debt reaches $1,301,988. The $800,000 sale price, less $20,000 selling costs, supplies $780,000 to repay debt. Estimated end debt is $521,988.

Enter the full sale price, not the equity after paying the mortgage. The existing mortgage is already included in starting debt, so subtracting it from the sale price would count it twice. When net sale proceeds exceed debt, end debt is zero and the calculator shows the remaining sale surplus.

Interest During the Bridge

Paid interest comes from your cash flow during the bridge. Capitalised interest is added to the balance and then attracts interest itself.

The paid-interest option multiplies starting debt by the annual rate divided by 12 for each month. Capitalised interest compounds at that monthly rate. Both options use the same starting debt and sale settlement period, so you can compare their cash-flow and end-debt effects.

The paid option reduces end debt because you pay $53,040 of interest separately. It does not reduce that cash-flow cost to zero. A lender can use different rates for separate loan accounts, charge interest daily or require repayments on part of the debt.

The calculator treats your cash contribution as money applied at the start. It does not model an offset account, later lump sums or principal repayments during the bridge. Its CSV export gives you the inputs and results in plain numbers for a spreadsheet, including Excel.

When the Sale Takes Longer

A longer bridge adds interest, while a lower sale price leaves less money to reduce the debt. The comparison chart changes these assumptions separately.

At the starting capitalised-interest settings, extending the bridge from six to nine months increases end debt from $521,988 to $549,852. Keeping six months but reducing the sale price by 10%, to $720,000, increases end debt to $601,988. Selling costs remain $20,000 in both comparisons.

With paid interest, a delay keeps modelled end debt unchanged but increases the total interest you must pay. For a combined stress scenario, enter both the later settlement period and the lower sale price in the fields.

The duration field allows stress testing beyond a lender's permitted term. A modelled result does not extend a loan contract or establish that refinancing will be available. Use the agreed settlement deadline when judging whether the sale plan can repay the bridge.

What the Lender Still Checks

A lender separately checks the loan structure, property valuations, ability to make required repayments and time allowed for the sale. The calculated end debt is an estimate under your assumptions, not an approved limit.

The lender's loan-to-value ratio (LVR) uses the property values it accepts. Your expected sale price and purchase price do not establish those valuations. Sale evidence and the expected net proceeds also affect whether the exit can repay the temporary borrowing.

Interest treatment and servicing differ by product. Westpac describes bridging finance that can involve interest on interest when payments are not made. CommBank's broker requirements require capacity to service interest-only payments on total debt during the bridge.

CommBank's bridging-loan page specifies a maximum 12-month term. That is a CommBank product limit, not a promise that every lender will allow the same period. This tool's single blended rate does not reproduce either lender's loan structure or credit assessment.

For a purchase in New South Wales or another state, enter the duty and other purchase costs that apply to that transaction. The bridging calculation does not determine duty or concessions. Use the remaining end debt in the mortgage calculator to estimate repayments on the ongoing loan.