Bridge Loan for a $2M+ Property Purchase


  • Knowing bank policy on PAYG income from a family business and scenario testing with the BDM
  • Educating the client about the lender’s requirements on bridging loans 
  • Mitigating the valuation risk of the client’s existing home by considering in detail the improvements made over the years




Our client is the Head of Operations at a commercial cleaning business which serves customers Australia wide. This business is owned and managed by the client’s spouse. 

When the client reached out to us, he was seeking a pre-approval for bridging finance. His plan was to upsize their family home to a property worth around $2.5M in Sydney’s western suburbs. He wanted to purchase the new home before selling their existing property valued at around $1.25M.

The client was able contribute $700K to complete the purchase, including a gift from a family member. 


The biggest hurdle in the scenario was the fact that the client was earning PAYG income from a family business, which tainted his income as being from a related party.

At the time the client reached out to us, the family business income tax returns had not been lodged. This meant that the client didn’t yet meet this docs requirement for the loan application. 

The valuation of the existing business also came in low.


We considered lenders which provide bridging loan as well as accept PAYG income from a family business. We also tested scenarios with BDMs to help the client select a lender and develop a strategy to get the deal over the line.

The client secured an unconditional gift letter from a family member to contribute towards the funds to complete.

We ordered a full valuation for the existing home with an extensive list of all the value-adding works done to the property since the acquisition.

Salary credits over 6 months, matched against bank statements were used to support the PAYG income from a related party employer.

As soon as the prior year income tax returns were lodged and the notice of assessments were available, we were able to submit the application.  

Bridging loan was smoothly pre-approved for the new purchase with a target price of $2.5M.