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A sharp pivot toward a buyer’s market has triggered a major surge in bridging finance demand across Australia, as home owners increasingly wish to move on their own terms.
New data from non-bank lender Bridgit has revealed that national bridging loan volume grew by 24.7 per cent in May compared to the six-month average.
Nearly every state and territory is seeing growth in demand for bridging finance, the lender said, with Victoria recording a 46 per cent increase over its six-month average – the strongest overindex of any state in the country.
This was followed by strong demand in Queensland (running 36 per cent above its six-month average), Western Australia was up 15 per cent, and NSW is tracking 13 per cent higher.
According to Bridgit, the surge can be attributed to a shifting real estate landscape, where property is taking significantly longer to sell.
Rather than risking expensive errors by selling under pressure or missing out on a preferred property because of timing misalignments, home owners are turning to bridging loans to secure their next home before they sell.
Speaking to Broker Daily about the trend, Aaron Bassin, CEO and co-founder of Bridgit, said: “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.
“There are a combination of factors as to why the surge: it’s a buyers 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.
“When you see Victoria up nearly 46 per cent on its six-month average and growth right across Queensland, WA, and NSW, that’s not a trend confined to one market; it’s a national story. Home owners are done putting their lives on hold because of a broken transaction sequence. They want to move forward on their own terms, and bridging finance is how they’re doing it.
“They don’t want to sell under pressure, move twice, or lose their dream home because the timing doesn’t line up. Bridging finance solves that – it’s the reason why Bridgit was created – and more Australians than ever are realising it.”
Yellow Brick Road branch principal and broker Effie Nicol said she had also seen growing appetite for bridging loans among her clients.
“As more Australians look to downsize, the demand for flexible bridging solutions continues to grow. The ability to secure a new home before selling an existing property can make all the difference in today’s market,” she said and noted that non-banks are increasingly stepping in to provide solutions as major banks tighten up credit policies.
Bassin said that the trend is also intersecting with a broader demographic shift.
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, many of whom are utilising bridging solutions to access locked-in equity without moving twice.
“We can’t forget that there is also a generation of older Australians whose wealth is locked in the family home and who are ready to downsize. They’re discovering that in this market, bridging finance can help them access that equity,” he said and noted that this growing cohort could “reshape part of the housing market”.
He said that, in response to the market momentum, Bridgit has launched a limited-time campaign offering $1,500 cash to new residential, owner-occupied customers to assist with moving costs. The incentive applies to Bridgit and white label purchases with a minimum loan size of $300,000 that are approved and fully settled by 30 June 2026.
[Related: Perth’s property boom slows, but brokers say fundamentals remain strong]
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