Funding is an online lender that offers short-term property finance solutions like bridging loans. Borrowers looking to move into their next property before their existing property sells can benefit from competitive fixed loan rates and fast access to finance.
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Funding key facts
- Funding offers loans for vacant land, personal loans, business loans and Australian Taxation Office (ATO) debts.
- Decisions are usually made within 3–5 days.
- The interest rates are personalised according to borrower risk but start from 7.95%.
- You need at least 30% deposit for a bridging loan and ideally 35%, meaning this is for existing borrowers switching to new homes.
Review by our senior home loans writer Rebecca Pike.
Funding bridging loan key features
Here are the key features and details you need to know about Funding's mortgage products.
|Minimum deposit||Funding bridging loans require no more than 70% loan to value ratio (LVR). This means you can borrow up to 70% of the property value for a bridging loan.|
|No offset account||Because it is a short-term bridging loan, it does not offer features like offset accounts.|
|Rates||Funding offers "rate for risk" interest rates, which means they start at 7.95% but may be higher depending on your circumstances. The bridging loans have fixed rates only as the loan terms are fixed at 1–36 months.|
|Interest only repayments||You only repay the interest during the bridging loan term. When the term ends, you repay the principal loan amount plus accrued capitalised interest|
How do I apply for a Funding bridging loan?
To apply for a Funding bridging loan, visit its website and get an express quote. You’ll go through conditional approval and then formal approval once the lender has done its due diligence in assessing your application.
- Age. You must be over 18 years of age.
- Residency. You can be an individual, company or trust borrowing for personal or business.
- Employment. Non-residents and low-doc borrowers are accepted.
📄 Information on existing property. The lender will use your existing property as security in case you are unable to repay the loan.
📄 Proof of identification. This covers your drivers’ license or passport.
📄 Proof of income. You must prove that you can meet your repayments.
How to apply for a home loan
More bridging loan questions
How do I know if a bridging loan is right for me?
Not everyone will need a bridging loan, but it’s helpful if you’re waiting for your home to sell. If you’ve found your dream home but haven’t sold your existing property yet, taking out a bridging loan can give you the flexibility to purchase early.
Consider how important it is that you purchase the property sooner as you will end up paying more in interest with the bridging loan. You also need to be confident that you will sell your existing property within the agreed-upon loan term.
Are there any risks to taking out a bridging loan?
There are always some risks involved with loans and bridging loans are no exception. The biggest risk is if you can't sell your property within the loan term. Your existing property will be used as security, so Funding can sell your home if you can't pay. This will also affect your credit score.
Like other lenders, Funding holds an Australian Credit Licence and is regulated by the Australian Securities and Investments Commission (ASIC) and must comply with the National Consumer Credit Protection Act.