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Founded in 2021, the non-bank lender said it has now supported 10,000 Australian households and financed more than $6 billion worth of residential real estate.
Bridgit also said it now works with 85 per cent of the broker market, while its borrowers have an average credit score of 900.
To mark the $1 billion milestone, Bridgit has donated $10,000 to Beyond Blue and will match donations from its employees and the broader broker community dollar-for-dollar, up to a combined total of $20,000.
Bridging demand on the rise
The milestone comes amid growing demand for bridging finance across the Australian property market.
Recent data from Bridgit revealed that national bridging loan volumes increased 24.7 per cent in May compared to the six-month average, as longer property selling times pushed more home owners towards bridging solutions.
Victoria recorded the strongest growth, with demand running 46 per cent above its six-month average, followed by Queensland at 36 per cent.
Western Australia and NSW were also tracking 15 per cent and 13 per cent higher, respectively.
Earlier in the year, brokers and lenders reported that Western Australia was the pre-eminent centre of bridging finance, with borrowers increasingly turning to short-term funding to remain competitive in one of the country’s fastest-moving property markets.
Speaking to Broker Daily about the rise in demand last month, Bridgit co-founder and CEO Aaron Bassin said bridging finance was becoming increasingly widely used by Australian home owners.
“What the data is telling us is that bridging finance is growing as more and more Australians harness how to use it to their advantage,” Bassin said.
“There are a combination of factors as to why the surge: it’s a buyer’s market, which means for sellers, it’s taking a lot longer to sell their home as buyers can be more picky. Put yourself in the seller’s shoes – they’re wanting to also purchase their next property and sometimes quite quickly. Bridging finance allows them to do this without needing to sell first. Selling under pressure is an expensive mistake any home owner can make.”
Brokers have also reported growing appetite for bridging finance, particularly among downsizers looking to secure their next property before selling their existing home.
Recent data has suggested that the number of Australian households planning to downsize over the next five years has risen 14 per cent since 2021, representing nearly 2 million households.
5 years of growth
Bassin said the lender had reached the $1 billion milestone faster than he initially expected.
“When I started Bridgit five years ago, I didn’t think about something like this happening so quickly. We are redefining an industry that was stuck in the past, with a business that is dedicated to helping people buy now and sell later using technology to get them there faster. What we’ve achieved in the last five years is proof that we are changing the way that Australia utilises their property equity,” Bassin said.
“We could not have done this without the support of the broker community, our customers, and most importantly the Bridgit team who have worked so hard.
“With a milestone like this, I believe that for any business it’s important to give back to the community. Beyond Blue is a charity close to many of us at Bridgit and to the broker community, so it was a no-brainer that this was who we supported first.”
[Related: Perth’s property boom slows, but brokers say fundamentals remain strong]
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