$1.95M Bridging Loan Prevents Settlement Delay
Property settlements don't always line up perfectly.
Assetline structured a $1.95 million bridging loan that enabled a borrower to settle on their new property while waiting for the imminent settlement of their existing home, avoiding costly delays and protecting the purchase.
The Scenario
A borrower had exchanged contracts on a new owner-occupied property with a fixed settlement date.
Their existing home had also been sold, with settlement scheduled shortly afterwards.
When the purchaser of the existing property requested a delayed settlement, the borrower was left with a funding gap that threatened the purchase of their new home.
Without additional finance, the borrower faced:
Missing settlement on the new property
Potential penalty interest
The risk of losing the purchase
Significant disruption to their planned move
The exit strategy remained clear—the existing property was under contract and due to settle shortly after.
Why Traditional Lending Wasn't the Right Fit
Traditional lending often assumes property settlements will occur exactly as planned.
In reality, settlement dates frequently change due to finance approvals, legal processes or purchaser requests.
Even when the sale is unconditional, a short timing gap can leave borrowers without access to the funds needed to complete their purchase.
Where the sale is imminent and the exit is clearly documented, bridging finance can provide the certainty required to complete the transaction.
The Assetline Solution
Assetline structured a $1.95 million bridging facility designed around the temporary funding gap.
The solution included:
$1.95 million bridging loan
68% LVR
Short-term facility
Interest capitalised
Owner-occupied security
Exit via the imminent settlement of the existing property
The facility allowed the borrower to settle on their new home on time while waiting for the proceeds from the existing property's sale.
"Bridging finance isn't just about buying before selling. It's about providing certainty when settlement dates change and timing falls outside the borrower's control."
Arthur Karvelas
State Manager -VIC/TAS
Deal Snapshot
Loan Amount | $1.95 million |
Product | Bridging Finance |
Loan Purpose | Settlement Gap |
Location | Victoria |
Security | Owner-Occupied Residential Property |
LVR | 68% |
Repayments | Interest Capitalised |
Exit Strategy | Imminent Sale of Existing Property |
Why This Structure Worked
The borrower didn't need a long-term lending solution.
They simply needed enough time for two settlements that no longer aligned.
With the existing property already under contract and settlement imminent, Assetline was able to structure a bridging facility around the temporary funding gap, allowing the purchase to proceed without unnecessary pressure.
Common Bridging Finance Scenarios We Assist With
Assetline regularly helps brokers with:
Settlement delays
Bridging loans pending property sale
Imminent sale bridging finance
Owner-occupied bridging loans
Property chain settlement gaps
Purchase settlements before sale proceeds are received
Short-term residential funding
Time-critical property transactions
Frequently Asked Questions
What is a settlement gap loan?
A settlement gap loan is a type of bridging finance that provides short-term funding where the purchase of a property settles before the proceeds from the sale of another property are received.
Does the existing property need to be under contract?
Typically, bridging finance relies on a documented exit strategy. An existing property that has exchanged contracts and is due to settle can provide a clear repayment pathway, subject to lending assessment.
Are monthly repayments required?
No. Eligible bridging facilities may include capitalised interest, meaning no monthly repayments are required during the loan term.
How long can a bridging loan run?
Assetline offers bridging finance with terms of up to 18 months, subject to assessment.
