Bridging finance in NZ is typically a short-term, 6 to 12 months finance arrangement to enable someone to purchase something now, while they wait for proceeds from another transaction to enable repayment of that bridging finance.
As an example, a person might want to buy a home now. They haven’t sold theirs and they don’t want to sell theirs until they’ve secured another home so they don’t become homeless. So they bridge that gap, knowing that the mortgage can be repaid in full on the sale of their existing house. Another example would be perhaps that someone wants to buy a home knowing that they’re getting an inheritance or some other form of payment due to them that’s in the near future, but they need to move now. So they bridge that gap with bridging finance.
Note: Bridging finance in NZ isn’t just limited to the more typical house sale situation. Bridging loans in NZ can be applied to all sorts of other items that require a moderate to high level of investment such as the examples here. If you’re not sure about whether your situation applies here, don’t hesitate, just give me a call and I’ll let you know, no obligations guaranteed.