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REAL LIFE EXAMPLES

Australia bridging loans are useful when borrowers require liquidity to take advantage of an immediate opportunity.

Here are some popular ways in which Australia bridging loans can be used.

PROPERTY PURCHASE BY LOCAL BUYERS

Australia bridging loan helps retired couple purchase condominium while waiting to sell their luxury home

An elderly Australian couple wanted to downsize from their large home worth $5m to a condominium since their children are older and on their own. They wanted to wait for a higher selling price for their current house, but did not qualify for a bank loan for the new property given their advanced age and lack of employment.

The couple took a one-year $2.5m bridging loan against their existing home which was debt free, using the funds to purchase a new condominium unit in Sydney harbor area with cash. Six months later, they were able to sell their home at a higher price, using the proceeds to pay off the bridging loan.

GMG AUSTRALIA
BRIDGING LOAN
TERM
One Year
Property Collateral
Point Pier Luxury Home worth $5m
LOAN AMOUNT
$2.5m
LOAN-TO-VALUE
50%
EXIT STRATEGY
Sale of family house
KEY CONSIDERATION
Obtain financing without need to meet traditional bank loan requirements
PROPERTY PURCHASE BY FOREIGN BUYERS

International family office taps Australia bridging loan to purchase a commercial building before setting up in Melbourne

A well-known international family office identified a $46m commercial building in a prime Melbourne location. However, there were competitive offers and they would have lost the property if they waited for their more traditional funding source options.

The family office took out a $31.5m bridging loan against the value of the commercial property which allowed them to make a quick purchase. It took another six months before the client was able to secure traditional mortgage financing on the property. The bridging loan was then paid off after nine months.

GMG AUSTRALIA
BRIDGING LOAN
TERM
One Year
Property Collateral
CBD commercial building worth $45m
LOAN AMOUNT
$30m
LOAN-TO-VALUE
65%
EXIT STRATEGY
Incoming funds from overseas
KEY CONSIDERATION
Speed and certainty of funding
INVESTMENT OPPORTUNITY

Australian businessman uses a bridge loan to buy out business partner and expand business globally

GMG AUSTRALIA
BRIDGING LOAN
TERM
24 Months
Property Collateral
Two high-end properties
1. Darling Harbour
2. City Centre
LOAN AMOUNT
$11m
LOAN-TO-VALUE
70%
EXIT STRATEGY
Upcoming company equity funding round
KEY CONSIDERATION
Speed of funding
BUSINESS EXPENSES

Australian developer uses a GMG Australia Bridging Loan to purchase land and funds for development

A local developer in Perth looking to acquire land below market value to develop track homes for resale.

The developer applied for a bridging loan against the land and future development.

GMG AUSTRALIA
BRIDGING LOAN
TERM
Three Years
Property Collateral
Land in Perth
LOAN AMOUNT
$19m
LOAN-TO-VALUE
60%
EXIT STRATEGY
Revenue from property sales and bank financing
KEY CONSIDERATION
Access immediate funds while arranging for development bank financing