Broker are increasingly demanding for flexible term in the increasing popular bridging finance market
Non-bank lender Bridgit has unveiled an 85% LVR bridging solution for closed bridging scenarios up to $8 million, aimed squarely at borrowers needing higher capacity on larger loans.
It marks another aggressive push from Bridgit as it seeks to claim a larger share of the niche bridging finance market.
Major lenders like ANZ and Westpac currently offer bridging loan LVRs of up to 80%, but borrowers are increasingly seeking more flexible terms for this increasingly popular short-term financing option.
Bridgit has also reduced and fixed its set-up fees to 0.6% on 12-month terms (previously from 0.79% annually) and 0.95% on 24-month terms (previously from 1.15% annually). The group has also broadened the use of AVM and desktop valuations for eligible properties listed or under contract.
Chief commercial officer Stephen Boyle (pictured) said the changes were implemented in response to direct broker engagement and wider industry research that “gave us a deeper picture of what brokers want”.
The refreshed terms follow a raft of policy changes for Bridgit, which, since launching in 2021, has emerged as a prominent player in the bridging finance space.
Late last year, Bridgit introduced 24-month bridging loan terms to accommodate longer sales cycles. It has also started accepting loan sizes up to $10 million.
Last month, Bridgit welcomed former Loan Market chief executive David McQueen as its new chief operating officer to help scale the business.
“As we enter our next phase of growth, having this level of operational leadership in place ensures we can continue to execute at pace while maintaining the innovation, quality, speed and customer focus that define Bridgit,” co-founder and chief executive Aaron Bassin said of McQueen’s appointment.
“This is the first in a series of enhancements we’ll be rolling out this year to further support our broker network,” Doyle said of the new loan terms.
Bassin added: “These updates reflect how Bridgit continues to lead by finding better ways to help people unlock the equity in their property.
“Bridgit continues to grow as an enabler, giving people the flexibility to move forward on their terms, and make the most of the equity in their home.”
