Over the past two years, the landscape of bridging loans in Australia has evolved from a niche financial product into a first-choice solution for homeowners. Bridgit reports that they have received over $2 billion in loan applications since their launch to market in 2021 and are seeing engagement consistently increase.
Traditionally, obtaining a Bridging Loan was a tedious process, limited to homeowners who meet strict criteria. Homeowners had to navigate a maze of prerequisites, including the need for an end loan after the bridging period (often associated with upsizing), a mandatory commitment to a 2nd application for a 30-year home loan post-bridging, and the requirement to have already sold their home, substantiated by a contract of sale.
Bridging Loans were often considered an expensive option with limited pricing transparency, primarily suited for those facing last-minute property challenges.
Unfortunately, despite their valuable role, brokers have often gone unrecognised for their efforts in facilitating these transactions.
However, with the introduction of innovative solutions, the traditional stigma of bridging finance has been flipped on its head and has now become a first choice for buying and selling property.
The Bridgit solution
Bridgit has focused on making bridging a solution for all types of homeowners and scenarios while also using technology to create a simple process and meet the demands of a modern consumer. Here's what makes Bridgit different:
1. Available for Homeowners Who Haven't Sold Yet: Bridgit extends its offering to homeowners at various stages of the selling process, whether they are waiting to sell their home or settle.
2. Suitable for Both Downsizers and Upsizers: Bridging loans are no longer limited to just one group of homeowners. Whether it's downsizing or upsizing, Bridgit's solution caters to specific needs.
3. Freedom to Choose the End Lender: Homeowners are no longer tied to the same lender for the end debt after the bridging period. Bridgit empowers brokers to explore and select the best lender for their client's circumstances, ensuring a tailored financial solution.
4. Transparent Pricing: Bridgit's commitment to transparency ensures that homeowners have a clear understanding of the costs associated with their bridging loan, eliminating hidden surprises.
5. Interest-Free Period: Homeowners can enjoy an interest-free period, alleviating financial stress and offering a sense of security while selling their home.
6. No Monthly Repayments: Bridgit's approach takes into account the borrower's cash flow needs by eliminating the requirement for monthly repayments during the bridging period.
7. Fair Commissions for Brokers: At Bridgit, brokers are rewarded with fair commissions for their valuable contribution in connecting homeowners with the right financial solution.