Firstmac has given bridging loan borrowers 12 months to sell their existing home and will now assess serviceability on end debt rather than peak debt, as slower selling conditions make it harder for upgraders to time a purchase and sale.
The Brisbane-based lender, which manages $23 billion in residential mortgages, said the redesign followed feedback from its broker partners and changes in the property market.
Where applicable, Firstmac will calculate borrowing capacity on the end debt – the amount owed once the existing home is sold – rather than the peak debt carried while both properties are held. The lender said the change could open the loan to more borrowers.
Borrowers can also capitalise interest and make no repayments during the interim period, easing cash-flow pressure while they wait for a sale to settle.
The shift comes as borrowing conditions tighten, with the Reserve Bank (RBA) lifting the cash rate to 4.6% on 29 September, its fourth increase this year. The central bank’s statement also pointed to a noticeable fall in new housing loans.
Cotality’s September 2026 Home Value Index found capital city homes took a median 39 days to sell, up from 23 days a year earlier, while estimated national sales over the three months to September ran 19.1% below the same period a year before.
Firstmac chief commercial officer Marie Mortimer (pictured) said the purchase of a new home and the sale of an existing one rarely coincide, and that slow sales make the overlap harder for owners to manage. A 12-month window, she said, lets borrowers secure their next property without rushing the sale of their current one.
“Bridging finance should take some of that pressure away, not add to it,” Mortimer said.
Alongside the longer term, the product opens eligibility to Category 2 postcodes, cuts the establishment fee, improves broker compensation, and adds cash-out options and a fixed interest rate.
To help brokers model deals, Firstmac has introduced a Bridging Tool for structuring scenarios and calculating end debt, plus a Bridging Servicing Calculator for assessing how much a client can borrow.
Mortimer said the lender had invested in “practical tools that help brokers structure bridging loans with greater confidence”, giving them a clearer view of a client’s position during and after the bridging term.
She said the redesign came from acting on what brokers were seeing with clients.
“Our brokers are closest to the customer,” Mortimer said.
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