The deal that's dying of slowness
You've done the work. The application is in, the client is a reasonable risk, and the bank is moving. But it's moving at bank speed. A business refinance commonly takes up to three months or more, and every step can add a week: the valuation booking, the credit assessment, a request for one more document, the loan documents, the settlement booking. Meanwhile your client has a deadline that won't move.
That's when deals get lost. A frustrated client starts ringing other brokers, signs up with an expensive cash flow lender on the side, or walks away from the refinance entirely. You can lose the deal and the client in the same week.
How a bridge keeps the deal alive
Equity Tap can lend the client what they need now, secured over property, for exactly the time the refinance will take. When the refinance settles, our loan is repaid from it. The client gets the money when they need it, the refinance continues at its own pace, and you stay the client's broker throughout.
We lend from $50k to $5m for one to twelve months, secured by a first mortgage, second mortgage or caveat over residential or commercial property anywhere in Australia. We don't order a valuation before approval and we don't need financials for a property-secured loan, so we don't duplicate the bank's slow steps.
Common reasons refinances drag
- Valuations taking weeks to book and return, or coming back lower than expected
- Credit assessors asking for more information in rounds
- Financials needing to be updated mid-application
- Outgoing lender discharge delays
- Complex structures with trusts, companies and several guarantors
- Commercial property or unusual security needing extra sign-off
Business owners can read why this happens in our guide on how long a business refinance takes.
Structuring the bridge
| Refinance situation | Bridge structure | How it's repaid |
|---|---|---|
| Refinance releases equity, client needs part of it now | Second mortgage behind the existing lender | From the refinance proceeds at settlement |
| Existing lender demanding repayment before refinance is ready | Short-term first mortgage | Replaced by the new lender at refinance settlement |
| Very short gap, funds needed immediately | Caveat | From the refinance proceeds |
| Refinance approved but for less than needed | Second mortgage for the shortfall | Cash flow, sale or a later refinance |
Whichever structure suits, interest for up to the first six months can be prepaid or added to the loan so there are no scheduled payments while the client waits. Interest is not waived, and the full cost is shown before proceeding. When the refinance settles, the refinance repays the Equity Tap loan.
For example
For example, a broker's client owns a café and the freehold of the building. A bank refinance to release equity for a second site is in progress, but the landlord of the new site wants the bond and fit-out deposit within two weeks. The refinance is weeks away from settling. A second mortgage over the building for three months, with interest added to the loan, pays the deposit and bond now. When the refinance settles, our loan is repaid from the proceeds and the client keeps the new site.
Only for the time it's needed
A bridge should run for the time the refinance takes and no longer. If the refinance is two months away, the client takes the loan for two months. If the refinance is delayed further, the loan is flexible within its term of up to twelve months, so the client isn't forced into a rushed decision. We'll talk through the timing with you before the term sheet is issued.
What we need from you
- Where the refinance is up to: lender, stage, any approval or conditions
- The amount the client needs now and what it's for
- Security property and existing mortgage details
- Expected refinance settlement timing
- ID for borrowers and guarantors
Once we have the scenario, conditional approval can often be given on the phone and a term sheet issued in about 30 minutes. Eligible loans can settle in as little as 24 hours. There's no credit committee, and you deal with the same team to settlement.
Telling the refinancing lender
A bridge works best when everyone knows about it. Let the refinancing lender know there will be a short-term loan to be repaid at settlement, so it's included in the settlement figures and there are no surprises on the day. We'll provide payout figures when they're needed. If our loan sits as a second mortgage behind the outgoing lender, the first lender's consent may be needed, and we'll flag that early so it doesn't become the slow step.
Keep the deal, keep the client
Call 1300 123 024 or start at apply. Each loan is priced on the client's individual circumstances, aiming for the sharpest rate available for that situation. See also refinance bridging loans and caveat and bridging for broker clients.
Business-purpose lending only. Approval, timing and terms depend on the scenario.
Frequently asked questions
My client's refinance is weeks away but they need money now. Can you help?
Will bridging the client interfere with the bank refinance?
Do you need your own valuation?
What if the refinance takes longer than expected?
Does the client have to make payments while waiting?
What if the refinance is approved for less than the client needs?
Do I stay the client's broker?
Brokers: send the scenario through the Equity Tap broker channel and you will deal with the same lending team.