Peak Debt and End Debt in Bridging Loans: A Teacher’s Guide
TL;DR Peak debt is the temporary total owed across both properties during the bridge; end debt is the permanent mortgage after net sale proceeds are applied. Lenders assess serviceability on end debt at the APRA rate +3% buffer, but interest is charged on peak debt each month, so a longer bridge compounds directly into the […]
Bridging Loan Alternatives for Teachers Buying Before Selling
TL;DR Six viable alternatives exist: selling first and renting, equity release, long settlements, deposit bonds, family guarantor structures, and conditional “subject to sale” offers. Equity release is often the cheapest path for teachers with strong equity, using standard home loan rates rather than bridging premiums, provided both loans are serviceable at the APRA buffer. The […]
How Long Do Teachers Have to Sell Their Old Home on a Bridging Loan?
TL;DR Bridging loans typically give six to twelve months to sell, but this is an outer limit — closed bridging loans align to a confirmed settlement, while open bridging uses the full window with more conservative lender assumptions. If the sale misses the deadline, lenders commonly convert the loan to a standard home loan and […]
Closed vs Open Bridging Loans for Teachers: Which Is Right?
TL;DR Closed bridges apply when the existing sale is already contracted, offering lower rates, shorter terms (up to 6 months), and simpler lender assessment. Open bridges suit buyers purchasing before selling, with longer terms (up to 12 months), higher rates, and lender discounts of 10%–15% applied to the estimated sale price. Serviceability is tested on […]
Bridging Loan Interest Rates for Teachers: What to Expect in 2026
TL;DR Bridging rates in 2026 sit close to standard variable owner-occupied rates; the real cost comes from capitalised interest compounding across the peak debt period, not a punitive headline rate. Peak debt and end debt drive the outcome — every extra month your existing home takes to sell adds materially to the ongoing loan you […]