What business bridging finance costs in Australia

Published business bridging rates run from about 8.3% a year for the best-secured loans to 15% for second mortgages, or 1.45% to 2.25% a month on private deals, plus fees of 0.75% to 2.5%. Bridging $800,000 for six months costs about $47,000 to $82,000 all in, and a late sale adds $6,000 to $8,600 a month.

Bridging finance is priced as a rate, a fee and a time limit, and the time limit does most of the damage. A lender can advertise 8.99% a year and still charge 1% to set up the loan, two valuations and a higher rate if the sale runs late. This guide reads what lender and broker pages publish, shows what each business use costs, and works the total cost of bridging $800,000 for six months against two properties, with peak debt and end debt. It is for business purpose borrowing only.

What lenders publish for business bridging rates

Most lenders publish a starting rate and very little else, so the table sets each page side by side. It covers lender pages, two broker pages and one accounting firm, read on 30 October 2026. Figures are the publisher's, indicative market data and not Ventas offers. Assetline also reports a $20 million residual stock refinance of four unsold Sydney duplexes at 70% LVR over 12 months with capitalised interest, published 26 October 2026, with no rate or fee disclosed. We did not find a major bank publishing a commercial bridging rate, so banks are not in the table.

Three things stand out. The lowest rates, 8.32% to 8.99%, come with a closed bridge (a contracted sale), a first mortgage and a lower LVR. Broker Smart Business Plans says its 8.05% floor applies to exactly that, and that open bridges, higher LVRs, second mortgages and fast private funding sit toward 13.50%. Second, the publishers disagree with themselves: Innovate Funding's own pages give 8.95% to 12.95% on one page and 8.95% to 11% on another, and Bridgit's fee label and FAQ differ. Third, a few pages that look like business products are written for home moves, so read the purpose and borrower type before relying on a rate.

Moneysmart defines bridging finance as short-term finance that covers the period between buying a new property and selling your existing property (page last updated 1 October 2019). This guide is for business and investment purpose borrowing. A home buyer bridging between houses takes a regulated consumer loan, which this page does not cover.

Monthly rates, annual rates and the fees on top

Private and caveat lenders often quote by the month. Innovate Funding's commercial page shows 1.65% to 2.25% a month for caveat bridging of 1 to 6 months and 1.45% to 1.95% a month for second mortgages. As a simple annual rate that is 17.4% to 27.0% (our arithmetic: monthly rate times 12). The bank and non-bank first mortgage pages above sit at 8% to 15% a year. That gap is the price of speed, a second-ranking security or a thin exit. Our guide to caveat loan rates reads the monthly lenders in detail and our caveat loans explained guide covers how they work.

The rate is only part of the bill. Costs that sit on top:

• Establishment or risk fee. 0.75% (Assetline) to 2.5% (Innovate Funding, Smart Business Plans), and up to 3% on one Innovate page. It is charged on the facility, so a short hold makes it look large as a yearly rate.
• Valuation and legal. Smart Business Plans shows $1,500 to $5,000 for valuation and $2,000 to $5,000 for legal. Two properties means two valuations and two sets of searches.
• Registry and discharge costs. PEXA lists a mortgage discharge with financial settlement at $55.11 for a single title and $70.29 for multiple titles, and registering a new mortgage at $74.14 and $95.48 (Victorian table, from 1 July 2026, including GST). Land registry fees are charged separately and set by each state, and we have not quoted them.
• Exit fees. Bridgit says no early exit fees. Smart Business Plans says some lenders charge 0% to 1%.
• Default and extension. Innovate Funding says default rates can run 4% to 6% above the standard rate. If the sale slips past the term, you pay the extension or the default rate.
• Transfer duty on the new property. Not a lender cost, varies by state and is not in our example below.

What each business use costs

The rate and the structure change with why you are bridging. These are the three business cases we see.

Buying premises before the current one sells. You exchange on the new building while the old one is on the market. Lenders look at peak debt, the existing loan plus the bridge, against the combined value of both properties. Smart Business Plans says lenders typically cap a first mortgage bridge at 65%, with 75% possible through a specialist. The cheapest pricing needs a signed sale contract, or a refinance already approved.

Carrying a developer from DA to construction finance. You settle on a site, then refinance into a construction facility once plans are final. Bridging Loans Australia puts development bridging at 9% to 11% a year for 6 to 18 months and 65% to 70% LVR. Innovate Funding says it lends about 75% of current value or 65% of gross realisation value, and that a bridge covers gaps around a build while a construction loan funds the build. Innovate's commercial page shows 55% to 65% on development sites. Expect to put in more equity than on an investment property.

Covering the gap until a refinance settles. A lender who has approved your term loan may not settle for weeks. A short bridge pays out the seller or the old lender now. Innovate Funding says the exit matters more than your recent income on private commercial files, and refinance pre-approval is one of the exits it accepts. Our short-term property-secured loan page covers this case and our bridging loan for my business page answers the common questions.

Financing a bridge across two properties

Business bridging comes from three kinds of lender. Banks assess bridging on the strength of your income and the sale, and are the cheapest when the file is clean. Non-bank lenders like Bridgit, La Trobe and Assetline publish rates from about 8.3% to 9%. Private lenders cost more, often 9% to 15% a year or more, and lend on security and exit. Private lending is typically business purpose and not consumer regulated, but a business purpose declaration does not decide it alone. ASIC says the National Credit Code covers credit provided wholly or predominantly for personal, domestic or household purposes, or to buy, renovate or improve residential property for investment. A declaration is ineffective if the lender knew it was untrue (SA Law Handbook). Ventas is a finance broker, not a lender, so we do not quote rates here.

Illustrative only, subject to lender assessment. A business owner buys premises for $1,100,000 while selling the building they trade from. The six month bridge is $800,000.

And what the bridge costs at three pricing points:

The low case uses Bridgit's from rate and its 1.00% set-up fee and the high case uses the top of Innovate Funding's first mortgage range. The middle case uses Innovate's published case studies at 10.95%. We charged simple interest on $800,000 only, with the fee added to the loan and valuation and legal paid in cash. Lenders may charge on the whole peak debt or compound monthly, so a real quote will differ. The cost of the bridge is $47,000 to $82,000 (our arithmetic), or 5.9% to 10.2% of the amount bridged over six months. The end debt of about $274,000 to $302,000 is not a cost. It is the part of the new building you still owe, usually refinanced into a standard commercial loan.

Lender appetite is real but narrow. Lenders will fund the bridge when the exit is clear. What makes a deal fundable:

• Equity. Peak debt at 65% to 75% of combined value, lower on vacant or development security.
• A believable exit. A signed sale contract is best. Otherwise a local agent's conservative appraisal, or a refinance approval in writing.
• Clean title. Both properties held in a company, trust or your name with no disputes, and a straight discharge path.
• A buffer. Room under the LVR cap for a sale that takes three months longer, which at our middle case adds about $21,900.

If you are unsure whether you meet that bar, commercial property finance and property-backed business lending show the lender options. To get a number from Ventas, send both addresses, the value of each, what is owed on each, the settlement date, your sale or refinance plan and who owns each property. Finance is subject to lender assessment and approval.

This is general information only and not financial, credit, or tax advice. Figures are indicative market data from the sources listed, not Ventas offers, and move with the market. Consider your own circumstances and speak to a professional. All finance is subject to lender assessment and approval.

This article is general information only and not financial, credit, or tax advice. Ventas Asset Lending is a finance broker, not a lender. Approvals are subject to lender assessment. Consider your own circumstances and speak to a qualified professional, including your accountant for any tax questions.