Bridging Loans for Property Sellers
Up to 80% of your sale proceeds as a cash advance NOW!
Sold a property and need your money NOW? Apply for a property bridging loan & skip the 90-day wait for your transfer to go through.
Not what you were looking for? For a loan against your paid up property, apply here.
Quick & easy short-term property loans
Congratulations! You’ve sold your home and now you can start searching for your next home or perhaps you’ve already found it. You’re banking on using the sale proceeds from your sold property to help cover the costs of purchasing your new property. But property transfers can be complicated and take months before you see the money… now what?
A property bridging loan for sellers is a short-term property loan giving you access to a percentage of the funds due to you while you wait for the transfer to be completed.
When you apply for a property sellers advance loan, our lenders may grant you up to 75% of your nett sale proceeds to give you access to much-needed funds sooner.
Use the funds to cover rates, transfer duty, as a deposit for your new property or to pay for renovations on your new home.
Use your bridging loan for…
Purchasing A New Property
Buy your dream home or an investment property.
Pay Transfer Duty
Get the funds to pay transfer duty on a new property
Levy/Rates Clearance
Use the proceeds to pay for your levy or rates clearance certificates.
Renovate
Begin renovations on your new property before you move in
You qualify for funding if…
You have a signed offer to purchase
A conveyancer has been assigned to your transfer
All suspensive conditions of the sale have been met
Loan Conditions
Minimum amount R 10 000
Maximum amount R 100 000 000
Minimum Term 61 days
Maximum Term 12 months
Minimum APR 29,76 %
Maximum APR 30 % %
Cost Schedule
Loan 10 000
Term 61 Days
Rate 0,15 % per day
61 day interest R 915
Total repay after 30 days R10 915
What are the benefits of bridging loans?
1. Secure Your Next Home with Confidence
This is often the most critical advantage. If you find your dream home before the sale of your current property is finalised, a bridging loan gives you immediate access to a portion of your sale proceeds. You can use this cash as a deposit to secure the new property, preventing you from losing out to another buyer who might have cash on hand. It removes the stress of potentially missing out on your next home while waiting for administrative processes to conclude.
2. Cover Immediate and Essential Costs
The property transfer process comes with several upfront costs that must be paid before you receive your money. A bridging loan provides the necessary funds to cover these without dipping into your savings or taking on expensive personal debt. These costs often include:
-
Municipal Rates and Taxes: You are often required to pay rates and taxes a few months in advance to receive a clearance certificate from the municipality, which is essential for the transfer to proceed.
-
Compliance Certificates: Paying for legally required Electrical, Plumbing, and Beetle Compliance Certificates.
-
Moving Costs: Booking and paying for removal companies well in advance.
3. Financial Flexibility and Peace of Mind
Knowing you have access to your funds provides invaluable peace of mind during what can be a very stressful period. The property transfer process can sometimes face unexpected delays, from issues with the buyer’s bond to administrative backlogs at the Deeds Office. A bridging loan gives you a financial buffer to handle any unforeseen personal emergencies or opportunities that arise, without being dependent on the exact date of the transfer. There are no restrictions on how you can use the funds.
Increased Negotiating Power
By having access to your capital, you are in a much stronger position for your next purchase. You can negotiate more effectively as you are not a distressed buyer reliant on a long chain of events to fall into place. This allows you to make firm offers and act decisively, which is always attractive to sellers.
5. Simple and Fast Application Process
Unlike traditional loans that involve lengthy credit checks and affordability assessments, a bridging loan for a property seller is secured against a guaranteed future event—the payout from your confirmed property sale. The application process is therefore incredibly fast and streamlined. Once the signed sale agreement is in place and all conditions have been met, you can often have the funds in your account within 24 to 48 hours. This speed is a significant advantage when time is of the essence.
How does it work?
The process of getting a bridging loan (also known as a seller’s cash advance) is designed to be fast and straightforward, bypassing the complexities of traditional loans.
Step 1: The Secure Sale Agreement
First, you must have a legally binding Offer to Purchase for your property. This means you and the buyer have signed the sale agreement, and all suspensive conditions—such as the buyer securing their own bond approval—have been successfully met. This secure sale agreement is the underlying asset that makes the bridging loan possible; it’s proof that a large sum of money is guaranteed to be paid out in the near future.
Step 2: Simple Application and Verification
You apply for a bridging loan with us. The application is quick and requires minimal paperwork compared to a bank loan. You will need to provide:
-
A copy of the signed Offer to Purchase.
-
Contact details for your appointed conveyancing attorney.
We then contact your conveyancer to verify the details of the sale and confirm the expected amount of the proceeds due to you after any existing bond and other costs are settled.
Step 3: The Crucial Role of Your Conveyancing Attorney
Your conveyancing attorney is a key part of this process.
Step 4: Fast Payout of Your Advance
Once we receive the signed loan agreement from you and the undertaking from your attorney, we process the payment. The funds—up to 80% of your net proceeds—are typically paid directly into your bank account within 24 to 48 hours. You are now free to use this cash for whatever you need, whether it’s a deposit on your new home in Kloof, settling municipal rates, or covering moving costs.
Step 5: Seamless and Automatic Repayment
This is the most convenient part of the process. You don’t have to worry about making monthly payments. When the property sale is finally registered at the Deeds Office (which can take 60-90 days), the full proceeds of the sale are paid by the buyer’s bank into your conveyancer’s trust account.
Before paying the balance out to you, your conveyancer fulfils their undertaking by repaying the bridging loan amount plus the agreed-upon costs directly to us.
Additional Information
You sell your home for R6mil. You still owe R2mil on your original bond. Therefore nett proceeds due to you will be R4mil. If you qualify for 75% of your sale proceeds early, you will receive R3mil in cash.
Upon transfer, your conveyancer will pay back R3mil to the lender and the balance to you (less any fees incurred).
Banks – only pay out the profits or sale proceeds to you when the property is registered in the new owner’s name, but a bridge company, bridging company, bridging companies, bridging finance houses, bridging lenders or bridge financiers pay out now. Bridging finance and bridging loans is a short-term cash loan that bridging loan lenders or bridging finance lenders advance to you, while you wait for the property to be registered.
Suspensive conditions – In order to successfully secure an advance as bridging financing on the funds from the sale of the property, all suspensive conditions must have been met by all parties to the property sale transaction, and the full purchase price must be secure, to enable a bridging loan to be approved. Funds can then be advanced, bridged, loaned, lent, borrowed or ceded.
Deceased Estate – If the sold property is part of a deceased estate, a bridging company can assist with bridging finance only if the applicant is currently the registered co-owner of the property. A bridging loan company would not be able to assist with providing bridging finance to heirs to the property.
Simultaneous Transfers – Please note that if the transaction involves a simultaneous transfer i.e. if you have bought the property and then immediately sold it, you would need to provide another, un-bonded, property as security.
Quick bridging loans – in South Africa are easy to secure through New Heights Finance, as we have access to various bridging companies who offer bridging finance. Fiance and bridging fiance is used when a private individual or a company has sold a property. It can be residential property, commercial property or land.
Commercial Bridging – We also arrange commercial bridging finance, bridging & commercial, bridging and commercial loans, bridging loan finance, property bridging loans, quick bridging loans and bridging finance solutions with a variety of bridging programs
FAQs
How much of my property sale proceeds can I actually get as an advance?
You can typically access up to 80% of the net proceeds from your property sale. The “net proceeds” is the amount left over after your existing bond (if any) and other direct sale costs have been settled. We work with your conveyancer to calculate this amount accurately to ensure the advance is secure.
How long does the application process take to get the money?
The process is designed for speed. Once you have a secure sale agreement and we receive the required undertaking from your conveyancing attorney, the funds are typically paid into your bank account within 24 to 48 hours.
What are the costs involved in a bridging loan?
The costs consist of interest and an administration fee, which are all clearly outlined in your loan agreement. These costs are calculated for the short period you need the loan and are all-inclusive. Importantly, these fees are not paid by you out-of-pocket; they are simply deducted from the property proceeds by your attorney along with the loan amount when the sale is finalised.
What happens if the property sale falls through after I’ve received the bridging finance?
This is a very rare occurrence because we only advance funds once all major conditions of the sale have been met (like the buyer’s bond being approved). However, in the unlikely event the sale does collapse, the loan would need to be repaid. The loan agreement will outline this contingency, and we would work with you to find a solution.
Can any conveyancing attorney handle a bridging loan transaction?
Yes, virtually all practicing conveyancers in South Africa, including those in Kloof and the Upper Highway area, are familiar with bridging finance and the process of providing an undertaking. It is a standard and common practice in the property industry. We liaise directly with your chosen attorney to make the process as smooth as possible.
Is a bridging loan a safe and regulated financial product?
Absolutely. As a reputable financial services provider, we are governed by the National Credit Act (NCA). All our agreements are fully compliant with the law, ensuring you are protected. The entire process is transparent and handled professionally in conjunction with your attorney, providing a secure and reliable service.
Apply for property bridging loans
Property sellers can enjoy early access to the proceeds of the sale if all the conditions furnished in the sales agreement have been met. Sellers can be eligible to receive as much as 80% of the nett proceeds.
PAUSE!! Please check you are applying for the CORRECT loan!!
This form applies to a property bridging loan for sellers who have sold a property and want an advance on the sale proceeds. HOWEVER, if you require a loan against your bond-free property (i.e. using your property as security for a loan), please APPLY HERE.
THE BELOW FORM ONLY APPLIES TO SELLERS ADVANCE LOANS. PLEASE ONLY SUBMIT THE FORM ONCE AND CHECK YOUR INBOX FOR A CONFIRMATION EMAIL.