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Non-bank lender and bridging loan specialist Bridgit has announced a new 12-month loan term for up to $4 million after securing a $125 million debt facility funding from a major bank.
According to the lender, the funding will support an additional $500 million annually in residential property finance, with its new loan term enabling its broker network to “empower even more Australians to buy their next property before selling their existing home”.
Speaking to Mortgage Business, CEO and co-founder Aaron Bassin said not only will the debt facility help scale the business, but it will also “help more Aussies get access to a really important financial solution to help them with their dreams of home ownership”.
“We also raised equity off the back of that to help support business growth and invest into the capital structure,” Bassin said.
“The facility now provides around $500 million of annual capacity for us which means we can help thousands of Australians access our solution to help them buy before they sell, and that’s ultimately what Bridgit is about.
“It’s helping Australians access their equity to purchase their dream property today, before they’ve sold.”
According to Bridgit, there has been a 300 per cent increase in bridging loan inquiries since the beginning of 2024, along with a 33 per cent increase in the value of properties being purchased and a 21 per cent increase in value of properties being sold since this time last year.
Commenting on the spike in bridging loan inquiries, Bassin said the product has become more accessible through the lender’s partnering with various major aggregators as well as engaging more with its customers and brokers.
“Ninety per cent of our customers now come through mortgage brokers … so the product is more accessible for Australians given that 74 per cent of home loans are facilitated through mortgage brokers. That’s one important factor,” Bassin said.
“The other [factor] is the environment right now, where property prices are increasing and there is a lot more demand to get into homes.”
Bassin said that with record low rental vacancies and rising prices, the lender aims to help people “access their equity today” and avoid a “buy/sell limbo”.
“Our bridging loan solution allows Australians to find the home they want in a very competitive market, buy it by using their equity, move in and then sell,” Bassin said.
“Another hidden benefit of our product is in a rising market, customers are able to actually buy their property today at a fixed price. The market’s still increasing, and they’re able to then make a high gain on the property that they’re selling.”
On the opportunities for brokers, Bassin said the lender is investing more in technology and automation to provide more services and solutions for brokers to engage with Bridgit.
“This means faster approval times, wider policy acceptance for more use cases, with brokers being able to use the product for more and more customers,” Bassin said.
“We have a national solution … to provide a solution for every Australian across every state and every postcode.”
Bassin said the lender has focused on integrations with aggregators, one-click solutions, and heavy investment in AI to speed up the intelligence and decisioning around credit risk management as a way to benefit its brokers.
In addition, the funding Bridgit received will be put towards expanding its distribution team to have multiple BDMs supporting its broker network in every Australian state.
[RELATED: Home owners seeking faster financing, shorter terms: Bridgit]
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