True wellbeing begins at home.
"How much will this actually cost me?" is the first question every client asks about bridging finance. The answer depends on three things: your peak debt, the interest rate, and how long the bridge runs. Here are real numbers at three different price points so you can see exactly what to expect.
By Jason Given · July 2026 · 8 min read
Bridging loan cost comes down to three variables: your peak debt (the total amount you owe while holding both properties), the interest rate, and how many months the bridge runs before your existing property sells. Get any one of those wrong in your planning and the cost changes significantly.
For most Adelaide buyers in the $700,000 to $1,500,000 range, bridging interest costs somewhere between $6,000 and $35,000 depending on these factors. That might sound like a lot, but compare it to the cost of selling first and renting, and the numbers often come out closer than you would think.
The formula is straightforward. Your peak debt is your existing mortgage balance plus the full purchase price of the new property. The monthly interest is peak debt multiplied by the annual rate, divided by 12. The total bridging cost is that monthly interest multiplied by the number of months the bridge runs.
Peak debt x rate / 12 x months = total bridging interest cost.
In practice, interest is calculated daily and capitalised (added to the loan balance), so the actual cost may be slightly higher due to compounding. But this formula gives you a very close estimate for planning purposes.
Current home value: $700,000. New purchase: $900,000. Existing mortgage: $280,000. Bridging rate: 6.5%. Bridge period: 2 months.
Peak debt = $280,000 + $900,000 = $1,180,000. Monthly interest = $1,180,000 x 6.5% / 12 = $6,392. Total cost over 2 months = $12,783.
This is a fairly typical scenario for someone upgrading from a starter home in the western or southern suburbs to a family home in an established area. With a 2 month bridge, the cost is manageable and well below the cost of renting and moving twice.
Current home value: $950,000. New purchase: $1,200,000. Existing mortgage: $400,000. Bridging rate: 6.5%. Bridge period: 4 months.
Peak debt = $400,000 + $1,200,000 = $1,600,000. Monthly interest = $1,600,000 x 6.5% / 12 = $8,667. Total cost over 4 months = $34,667.
At 4 months, the cost is noticeably higher. This is why we always emphasise getting your property on the market quickly and priced realistically. If this same bridge ran for only 2 months, the cost would drop to $17,333, saving $17,333. Speed of sale is the single biggest factor you can control.
Current home value: $1,300,000. New purchase: $1,600,000. Existing mortgage: $520,000. Bridging rate: 6.5%. Bridge period: 6 months.
Peak debt = $520,000 + $1,600,000 = $2,120,000. Monthly interest = $2,120,000 x 6.5% / 12 = $11,483. Total cost over 6 months = $68,900.
At the higher end, bridging costs are substantial if the bridge runs long. But $1.3 million properties in Adelaide's premium suburbs like Burnside, Stirling, or Brighton tend to have strong buyer demand. If this property sold in 3 months instead of 6, the cost would be $34,450, half the 6 month figure.
Interest is the biggest cost, but it is not the only one. Budget for these additional items when planning your bridge.
Application or establishment fees vary by lender, typically $200 to $600. Valuation fees apply to both properties, usually $300 to $500 each. If you are moving to a new lender (which is common with bridging), your existing lender will charge a discharge fee of $150 to $400. Stamp duty on the new purchase is a major cost but applies whether you bridge or not, so it is not really a bridging cost.
All up, expect $1,000 to $2,000 in fees on top of the bridging interest. We include these in the full cost breakdown we prepare for every bridging client.
The alternative to bridging is selling first, renting while you find your next home, then buying. People assume this is the cheaper option, but when you add up the real costs, it often is not.
Rent at $600 per week for 3 months costs $7,800. Storage for furniture and belongings at $200 per month for 3 months costs $600. Moving twice (out of your home and into temporary accommodation, then into the new home) at $2,000 per move costs $4,000. The total comes to approximately $12,400, plus the stress and disruption of uprooting your family twice.
Compare that to the Entry Level example above where the bridging cost over 2 months is $12,783. The financial difference is marginal, but you avoid the double move entirely.
List your property early. Have your agent and marketing ready before the bridging loan settles, so your property goes on the market the same week you take possession of the new home.
Price realistically from day one. Overpricing and then reducing after 4 weeks wastes the cheapest part of your bridging window. Every extra month on market costs thousands in capitalised interest.
Choose the right lender. Rates vary between lenders and so do fee structures. BankSA and Westpac offer competitive bridging rates for new customers. Bridgit offers speed and flexibility. We compare the options and show you the total cost with each lender before you commit.
With most lenders, the interest on the bridging portion is capitalised. That means it is added to the loan balance rather than charged as a monthly repayment. You continue making repayments on your existing mortgage as normal. When your property sells, the capitalised interest is paid from the sale proceeds along with the remaining mortgage balance.
Yes. Most lenders charge an application or establishment fee, typically $200 to $600. You will also pay for property valuations on both the new purchase and your existing home, usually $300 to $500 each. If you are moving from another lender, there may be discharge fees on your existing loan as well.
Yes. Because bridging interest is calculated daily, the faster your property sells, the less interest you pay. If your bridge was set up for 6 months but your property sells in 6 weeks, you only pay interest for those 6 weeks. This is why we always recommend listing your property as early as possible and pricing it to sell.
Have a question about your situation?
Book a no obligation chat with Jason or Steve. Confidential, no cost, and tailored to you.