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Short Term Property Loans
Quick & Flexible Short-Term Property Loans – Get Funded Today!

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Short Term Property Loans in Australia: Fast Bridging Finance

Need to settle a property, cover a funding gap or release equity before the bank says yes? Formation Finance arranges short term property loans from $200,000 to $20 million, secured against Australian residential, commercial or industrial property.

Terms run from 3 to 24 months, with approval typically in 48 hours and settlement in 3–7 business days. We compare 50+ bank, non-bank and private lenders to find a loan that fits your timeline and exit plan.

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Key Features of Our Short Term Loans

FeatureDetails
Interest rateFrom 7.95% p.a. (indicative; depends on LVR, security type and exit strategy)
Loan amount$200,000 – $20,000,000
Loan term3 – 24 months
Maximum LVRUp to 75% (up to 70% for development and construction loans)
Approval timeWithin 48 hours
SettlementTypically 3 – 7 business days
Income documentationMinimal: we assess the property and your exit strategy, not just your payslips
RepaymentsInterest can be capitalised, so there are no monthly repayments in most cases
Security acceptedResidential, commercial, industrial property and development sites
LocationAll Australian states and territories
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How It Works

1. Tell us about the property and what you need: 10-minute call or online enquiry.

2. We compare lenders and send you indicative terms, often the same day.

3. Valuation and formal approval: typically 48 hours.

4. Loan documents and settlement: typically 3–7 business days.

5. Repay at the end of the term via your exit strategy.

What Are Short Term Property Loans?

A short term property loan is a loan secured against real estate for a set period, usually 3 to 24 months. It is designed to bridge a gap, not to be held long term.

Unlike a standard home loan, approval is based mainly on the property’s value and your exit strategy, rather than your income. That is why these loans are often used when a bank is too slow, or declines because of self-employed income, credit history or the type of property.

Most short term property loans are interest-only, and interest is often capitalised (added to the loan) so there are no monthly repayments. The loan is repaid in full at the end of the term, usually by selling the property, refinancing to a bank, or from another settlement.

They are provided mainly by private lenders and non-bank lenders, which is why rates are higher than a standard mortgage but approval is much faster.

Why Pick Formation Finance?

– Fast turnaround: approval in 48 hours, settlement in 3–7 business days
– Access to 50+ bank, non-bank and private lenders
– Minimal income documentation with No-Doc Loans
– Release equity without refinancing your main mortgage via Second Mortgage Loans
– Loan structures for developers, builders, investors and business owners

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Short Term Property Loans across Australia

We arrange short term property loans across Australia, including Melbourne, Sydney, Brisbane, Perth, Adelaide and regional areas.

Accepted security includes:
– Residential houses, units and townhouses
– Vacant land and development sites
– Commercial property: offices, retail and shops
– Industrial property: warehouses and factories
– Completed residential stock

short term property loans

When to Use a Short Term Property Loan

Our clients use short term property loans for:

  • Bridging finance between property sales: buy your next property before the current one sells.
  • Fast settlements: settle on time when your bank delays or declines.
  • Releasing equity: access cash tied up in property, see Second Mortgage Loans.
  • Paying ATO debt or urgent liabilities: clear a tax debt or creditor while you arrange longer-term finance.
  • Property development and renovations: see Property Development Loans and Construction Loans.
  • Restructuring finances: buy time to improve your credit or financial position before refinancing to a bank.
  • Unsold stock after completion: see Residual Stock Loans.

Short Term Property Loan Examples

How our clients use short term property loans. Names and some details changed for privacy.

Illustrative example

Bridging loan: buying before selling, Melbourne VIC

  • Loan: $1,200,000
  • LVR: 60%
  • Term: 9 months
  • Rate: from 7.95% p.a.
  • Approved: within 48 hours
  • Settled: 6 business days

Situation: A self-employed couple found their next home in Kew but hadn't yet sold their existing property. Their bank wanted two years of tax returns and an 8-week approval, which would have cost them the purchase.

Solution: A short term loan secured against both properties, with interest capitalised so there were no monthly repayments while they moved.

Exit: Their existing home sold in month 5, and the loan was repaid in full from the sale proceeds.

Illustrative example

Clearing an ATO debt: business owner, Sydney NSW

  • Loan: $450,000
  • LVR: 65% (combined)
  • Term: 12 months
  • Rate: from 8.49% p.a.
  • Approved: within 48 hours
  • Settled: 5 business days

Situation: A construction business owner had an ATO debt with a deadline approaching. Their accounts were behind, so banks wouldn't assess them.

Solution: A second mortgage behind their existing home loan, so the main mortgage and its low rate stayed untouched.

Exit: Once their financials were updated, they refinanced to a bank at month 10.

Illustrative example

Residual stock loan: unsold townhouses, Brisbane QLD

  • Loan: $3,800,000
  • LVR: 65%
  • Term: 18 months
  • Rate: from 8.49% p.a.
  • Approved: within 48 hours
  • Settled: 7 business days

Situation: A developer completed 8 townhouses, but 5 remained unsold when the construction loan expired, and the lender was charging default interest.

Solution: A residual stock loan repaid the construction lender and released some equity, giving the developer time to sell at full price instead of discounting.

Exit: The remaining townhouses sold over 14 months, with the loan reduced after each sale.

Examples are illustrative only and not a quote or offer. Rates, LVRs and terms depend on lender assessment, security and exit strategy. Fees apply.

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Lending Guidelines

Loan type Residential First Mortgage Development Site Loans Construction Loans Residual Stock / Bridging Loans Mezzanine Loans
LVR (up to) 75% 70% 70% 70% 75%
Loan term 3–24 months 3–24 months 12–24 months 3–24 months 3–24 months
Rates (from) 7.95% p.a. 8.49% p.a. 9.99% p.a. 8.49% p.a. 15.00% p.a.
Approval Within 48 hours Within 48 hours Within 48 hours Within 48 hours Within 48 hours

Rates and LVRs are indicative and subject to lender assessment, security type, location and exit strategy. Fees apply. Mezzanine loans sit behind a first mortgage, which is why the rate is higher. Last reviewed October 2026.

Reviewed by Jackie Wang, Partner at Formation Finance

Jackie Wang has over 10 years of experience in finance and lending, structuring short term property loans, bridging finance and development funding for Australian developers, investors and business owners. He holds a Master of Professional Accounting from RMIT University, which shapes how he assesses each loan: the numbers, the security and, above all, a realistic exit strategy.

Jackie has reviewed this page to ensure the rates, LVRs, loan terms and fees reflect current lending conditions.

Last reviewed: 15/10/2026

Short Term Property Loans FAQ

In most cases, we can secure approval within 48 hours and settle within 3–7 business days.

Typically: photo ID, the property title or contract of sale, a recent valuation or rates notice, details of existing loans on the property, the loan purpose, and a written exit strategy. Some lenders also ask for an asset and liability statement. Payslips and tax returns are usually not required.

Usually not. Most short term property loans capitalise or prepay the interest, so there are no monthly repayments during the term. The interest is added to the loan or deducted at settlement, so you repay the full amount at the end. Some lenders offer monthly interest-only repayments, which can lower the total cost.

An exit strategy is your plan to repay the loan at the end of the term — usually through property sale, refinancing, or receiving lump sum income. A clear exit strategy is essential for approval, as short term loans are interest-only and designed for temporary use.

Often yes. Private lenders focus on the property’s value and your exit strategy, so defaults, discharged bankruptcy or ATO debt don’t automatically rule you out.

Expect an establishment fee, lender legal fees, a valuation fee and a broker fee. We give you a full written breakdown before you sign.

We arrange loans from $200,000 to $20 million.

A bridging loan is one type of short term property loan, used to buy a new property before selling an existing one. Short term property loans also cover equity release, development, settlements and debt payments.

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info@formationfinance.com.au

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