bridging loan

noun

1. a loan made to cover the period between two transactions, such as the buying of another house before the sale of the first is completed

Example Sentences

Most properties still sell within the three-month timeframe of a standard bridging loan: The average home in Australia's major cities took 31 days to sell in August, while sellers may also factor in a contract settlement time of about six weeks.

From Reuters

But bridging loan providers say their volumes have jumped, even as retail banks warn of rising competition and shrinking business in mortgage lending overall.

From Reuters

"We put our rates up and braced for a slowdown, but it's still full steam ahead," said Jack O'Reilly, CEO of funding.com.au, a bridging loan specialist whose monthly loan volumes are up 50% from a year ago.

From Reuters

Australia's housing market downturn is squeezing many home sellers into a double bind: They've taken out a mortgage for a new home but are holding out for a good deal on their old place, forcing them also to hold a bridging loan to cover their previous mortgage.

From Reuters

While four months of interest rate hikes forced all lenders to put up their mortgage rates, they may also have allowed bridging loan providers to narrow the gap between their rates and those of standard mortgage loans, making their products more palatable for borrowers.

From Reuters