Short-term Bridge Loans
Short Term Bridging Loans from Aquamore
A short term bridging loan is a popular finance option for property developers and investors as it offers a stronger, more flexible position when it comes to land and property acquisition. Bridging finance can provide a solution to a number of circumstances. It may be used to complete an unfinished development project in order to release capital that had previously been restricted. Bridging loans can also give investors the opportunity to purchase land or property at auction. Another reason bridging loans can be useful is that they often provide capital that wouldn’t be available through a mainstream lender due to the condition of the property or site in question.
Loan Terms and Repayments
Terms and repayments of a short term bridging loan will depend on the individual circumstances of the organisation applying for the loan. The amount available to borrow ranges from $200k to $7.5million. First mortgage rates start from 6% per annum while second mortgage rates are offered from 1.2% per month with our secured loans incurring an establishment fee of 2.2%. Our case study below highlights one example of a bridging loan structure including the recourse agreement and loan term. You can contact us to discuss your specific project for a more detailed overview of representative rates and terms.
A Short Term Bridging Loan Case Study
Although every project and funding arrangement is unique, this case study offers a demonstration of how a short term bridging loan could be put in place for your next venture. Here is a top-line summary of how an Aquamore client utilised bridging finance to embark on a real estate development project:
Facility Size: $3,490,500
Facility Requirement: Acquisition of land for several affordable housing developments
Use & Structure: The Facility assisted a developer with the financing of five building sites located in QLD and Schofields, NSW. Based in NSW, the Australian-owned building company specialises in developing affordable housing.
Loan Term: 12 months
Key Ratios: Maximum Loan-to-Value Ratio (LVR) < 60%. Loan interest paid monthly.
Arranged Recourse:
- First registered mortgage security over all five properties
- First Ranking General Security Agreement over all the assets and undertakings of the Borrower
- Share Mortgage over the Borrower
- Directors’ and/or Personal Guarantees of the Borrower
Why Choose Aquamore for Your Short Term Bridging Finance Solution
Based at our Sydney Head Office, the Aquamore team has a wealth of experience where commercial ventures are concerned, along with a range of specialist expertise in areas such as property and taxation law. Unlike larger financial lenders, we’re primed to assess information and execute decisions quickly and efficiently, meaning your project can progress without any unnecessary delay from Aquamore as a funding facilitator. We can release funds fast once finance is accepted.
Since beginning operations in 2016, we have released over $100million in funding to clients looking to grow their business ventures. We hold current AFS and AC licenses in addition to an in-depth knowledge of business growth strategy across a range of sectors.
You can contact us by calling, emailing or filling out our application form to arrange a discussion and learn how we can help with the financial facilitation of your next business venture.
Short-term Bridging Loan Frequently Asked Questions
A short-term bridging loan provides finance to property developers and investors when purchasing property.
All Australian lenders have their own nuances and requirements. Broadly speaking, the applicant applies for a loan, they are assessed, and, following the necessary due diligence, the application is either accepted or rejected.
It is with Aquamore. We strive to make the application process and assessment efficient and frictionless. Timing can be as quick as two to three days, provided all documentation is submitted.
Aquamore isn’t like other lenders. Provided you meet our flexible criteria, your mortgage broker should be able to successfully apply for a bridging loan on your behalf.
All clients must apply for an Aquamore short-term bridging loan via their mortgage broker. This is a simple online process. If not all documents are to hand at the point of application, your broker can still progress (provided evidence is eventually submitted).
Bridging loans traditionally use equity in your already existing asset so a deposit is not always necessary when applying for bridging finance.
Aquamore loans typically range from one to 24 months. However, we are flexible both at the point of application and, indeed, during the term of the loan.
Whilst many other lenders impose loan term restrictions, Aquamore takes a more liberal approach. If you need to extend your loan, have your broker contact us to discuss.
Rates can change. Please contact our team for the very latest rates we provide.
Please contact our team for the very latest information about the cost of a short-term bridging loan.
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