What happens if I don't sell within the bridging period?

We can ask the lender for an extension of a couple of months, which is at their discretion, or look at a new bridging application with the same lender or a different one.

Can a bridging loan be extended?

Sometimes. Extensions are up to the lender, and it helps if the property is listed, priced realistically and attracting interest. Start the conversation early.

Why do bridging loans run over?

Usually because the old property takes longer to sell than planned, often because it's priced above what buyers will pay. Pricing realistically from the start is the best protection.

Home / Straight Answers / Bridging loan time limit

Straight Answers · Next home

How long does a bridging loan give me to sell, and what happens if I run over?

Bayley Clarke · Mortgage broker on the road · Last checked 11 November 2026 · 2 min read

The short answer

Generally the maximum term for a bridging loan is 12 months. That's the window you've got to sell the old place once you've bought the new one, and depending on the lender and whether you're buying or building, it can be shorter.

If we get close to running over, there are ways to deal with it. We can go to the bank and ask for an extension of a couple of months, or we look at a new bridging application, with the same lender or a different one, so it all gets sorted.

The 60 second version, filmed from the driver's seat. The rest of this page is the detail underneath it.

How the bridging window works

A bridging loan lets you buy your next home before you've sold the current one. You pay a little bit of a premium as a cost of convenience, for the luxury of being able to buy before you've sold. For a set period, the bank carries both properties, and the plan is that the sale of the old place clears the bridging part of the debt.

That period is the bit to watch. Generally the maximum is 12 months, and the lender sets it when the loan is approved. Some lenders give you less time when you're buying an established home than when you're building, because a build naturally takes longer. So the first thing I check when we set one up is exactly how long that particular lender gives you, and whether it's realistic for the market you're selling in.

What happens if you get close to running over

If the sale is taking longer than planned, we don't wait until the last week. There are two main options. The first is going to the bank and saying, pretty please, we're almost there, can we extend it by another couple of months? Extensions are at the lender's discretion, so it helps if the property is listed, priced sensibly and there's genuine interest.

The second is a new bridging application, either with the same lender or a different one, which resets the clock on fresh terms. That means a new assessment, so it's worth starting the conversation early rather than when the deadline is already on top of you.

The honest bit: the price you list at matters more than the term

Most bridging loans that run long do so because the old place is priced above what the market will pay. Every extra month is another month of carrying two properties' worth of debt.

So set the bridging period with some breathing room, price the sale realistically from day one, and keep an eye on it together. If it starts to drift, we act early while the options are still easy.

Buying before you've sold?

A 30 minute call. We look at what you owe, what the old place might sell for, and how long a bridging loan would give you, before you make an offer.

Book a 30 minute call Call 0437 189 939

No cost to you. The bank pays me when a loan settles. · How I get paid

Next question

Do I make repayments during bridging finance?

It depends on the lender. Some want interest only repayments for the whole bridging period.