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The increased funding takes the total committed to Bridgit by its investors, including Macquarie and Citi, to more than $1.7 billion, as the fintech reports sustained demand for its bridging and home equity products.
It’s not just lenders, either. Brokers, speaking to Broker Daily, have also noted an uptick in bridging finance demand, particularly among upgraders, one of the few borrower segments to show greater resilience in recent months.
Bridgit said it supported 2 per cent of Australian owner-occupier property purchases in the fourth quarter of FY2025–26, excluding first home buyers, as more home owners opted to buy their next home before selling their existing property.
The non-bank specialist lender has also reported quarter-on-quarter growth of 28 per cent in loan submissions between Q4 FY25–26 and Q1 FY26–27, despite the broader market slowdown.
That growth builds on a stronger run over the past year, with Bridgit recording a 168 per cent increase in lending between FY24–25 and FY25–26.
“Bridgit is fast becoming a category owner in the bridging and equity release space,” said Bridgit founder and chief executive Aaron Bassin.
“Australian home owners are increasingly choosing to buy now and sell later and even more so given the broader downturn in the property market.”
Lenders look to bridge the gap
Bridgit is not without challengers, however.
Firstmac has also enhanced its bridging loan, citing broker feedback and changing property market conditions.
The redesigned product gives borrowers up to 12 months to sell their existing property, alongside expanded postcode eligibility, lower fees, improved broker compensation and greater flexibility in how borrowing capacity is assessed.
Firstmac chief commercial officer Marie Mortimer said the lender had made the changes in response to what brokers were seeing in the market.
“Buying a new home and selling your existing one rarely happens at exactly the same time. When properties take longer to sell, that timing gap can become even more difficult for home owners to manage.
“Bridging finance should take some of that pressure away, not add to it. Giving customers 12 months to sell means they have greater flexibility to secure their next home without feeling they have to rush the sale of their current one.”
Upgraders drive demand as market shifts
Brokers said demand for bridging finance had increased as the housing market softened, with upgraders a key source of activity.
Nick Hakim, founder and principal at Skyline Brokers, said bridging finance had traditionally been a niche lending product used in specific circumstances.
“That’s changing,” he said.
“More home owners are recognising that they don’t necessarily need to sell their existing property before securing their next one. For those with sufficient equity, bridging finance can provide flexibility that traditional lending structures don’t always accommodate.
“What’s particularly interesting is the growing involvement of non-bank lenders. They’re identifying gaps in the market where traditional banks have generally been more conservative, particularly around lending criteria, turnaround times and the flexibility of bridging arrangements.”
Similarly, Paolo Llave, senior finance broker at Berti Financial, said he had seen upgraders looking to use bridging finance to capitalise on the slump in house prices.
“For some upgraders, a softer market can make the move to a larger home more achievable. While their existing property may also sell for less, a price reduction on a higher-value home can narrow the dollar gap between selling and buying.
“Many have also built up substantial equity, so the challenge is timing the two transactions. Bridging finance can give them flexibility to purchase while waiting for a suitable buyer for their existing home.”
The trend comes as Australian Finance Group’s latest results found that upgraders made up a record proportion of broker lodgements.
Opportunity comes with risks
Bridging finance has previously gained traction in a very different market.
Broker Daily has reported on how Western Australia’s hot market at the start of the year was pushing people towards bridging finance, as buyers sought to secure their next property before selling their own, confident it would sell quickly.
Now, as vendors adjust their price expectations and properties take longer to sell, the product is again gaining ground.
Hakim said uncertainty in the market, alongside the opportunity to secure a bargain, were two key forces behind the trend.
“Bridging finance allows buyers to potentially secure that opportunity without being forced to rush the sale of their current property,” he said.
“However, there’s an important distinction between giving someone more time to sell and removing the financial risk of selling. If a property takes longer than expected to sell or ultimately sells below its anticipated value, the borrower could be left carrying additional interest costs or a higher residual debt than originally planned.
“That’s where the risks become particularly relevant in a declining market.”
Hakim added that bridging finance needed to be suited to the borrower’s circumstances, given the potentially costly consequences of getting it wrong.
“Macquarie’s additional funding into Bridgit is a good example of institutional capital recognising an opportunity in a segment that hasn’t always received the same attention as traditional residential mortgages.
“But more lending options don’t automatically mean better outcomes for borrowers. Bridging finance can be expensive, and the financial implications of holding two properties in a declining market need to be properly understood.
“Ultimately, I think bridging finance will become a more prominent part of the mortgage market, but its growth makes the broker’s role even more important.
“The opportunity isn’t simply helping someone buy before they sell. It’s making sure they can afford the consequences if their property doesn’t sell when, or for what, they expected.”
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