AFG Launches Bridging Finance Product With Bridgit: What Australia's Property Upgraders Need to Know in 2026

Key takeaway: Australia's largest mortgage aggregator AFG has launched a white-label bridging finance product with fintech lender Bridgit, designed for property upgraders and downsizers. The move signals that bridging loan demand is now mainstream enough to attract the country's biggest aggregator — and has direct implications for borrowers navigating a slower sales market in 2026.

What Is the AFG–Bridgit Bridging Finance Product?

AFG — Australia's largest mortgage aggregator — has expanded its white-label product lineup with a new bridging finance offering, built in partnership with Bridgit. The product is designed specifically for borrowers who need to purchase a new property before their existing home has sold.

Bridging finance has traditionally been the domain of a small number of specialist non-bank lenders. AFG's entry is a significant signal: demand for flexible, short-term property finance is now mainstream enough for the country's biggest aggregator to move into the space. For brokers and their clients, this means greater accessibility — but also more competition and variation in product terms.

Why Property Upgraders Are Turning to Bridging Finance in 2026

In a market where CoreLogic data shows the housing downturn is widening and days-on-market are extending across Sydney and Melbourne, the classic "sell first, then buy" approach carries real financial risk. A buyer who settles their new purchase before their current home sells faces a short-term funding gap — and bridging finance exists precisely to cover that gap.

With Australian average weekly earnings sitting at $2,083.70 (ABS May 2026) and living costs elevated by 3.8% annual CPI (ABS June 2026), most households cannot afford to accept below-market offers just to manufacture simultaneous settlements. Bridging finance removes that pressure — at the cost of carrying two loans simultaneously during the bridging period, usually on an interest-only basis.

"Bridging finance lets you move on your timeline, not the market's timeline — but the exit strategy has to be watertight from day one."

The key variables in any bridging loan are: the peak debt (combined loan balance during the bridging period), the interest rate structure (typically interest-only), and the exit strategy — usually the sale of the existing property or a refinance into a long-term facility.

Who Qualifies for Bridging Finance in Australia?

Bridging finance eligibility typically requires:

• Sufficient equity in the existing property (commonly 20–30%)
• A credible, documented exit strategy
• Demonstrated ability to service the peak debt during the bridging period (usually 6–12 months)
• A property actively listed or under contract (for "closed bridging")

For self-employed borrowers, proving serviceability is more complex — standard PAYG income documents do not apply. Non-bank lenders, including MPFG Capital, offer alt doc bridging solutions where bank statements, BAS statements, or accountant letters are accepted in lieu of tax returns.

What This Means for Borrowers — MPFG Perspective

AFG's entry into the white-label bridging space confirms what specialist non-bank lenders have observed for years: demand from property upgraders, downsizers, and small developers for short-term property finance is large and growing. The 2026 market — characterised by a widening CoreLogic downturn, cautious major bank lending behaviour, and ABS data showing slowing credit growth — has made timing a property transaction precisely more important than ever.

For borrowers who are self-employed, carry complex income structures, or have been declined by a major bank, MPFG Capital's Private Funding and Bridging Finance solutions offer a direct path to settlement — without waiting on a major bank's standard credit pipeline.

Key advantages of working with a specialist non-bank lender on bridging finance include faster approval timelines, flexible income verification, and loan structures tailored to your specific exit strategy.

FAQ

What is bridging finance and how does it work in Australia?

Bridging finance is a short-term loan — typically 6 to 12 months — that covers the funding gap between buying a new property and selling an existing one. The borrower carries both loans simultaneously, usually on an interest-only basis, until the existing property settles and the peak debt is reduced to a single ongoing mortgage.

Can self-employed borrowers access bridging finance in Australia?

Yes. While major banks often require full tax returns and PAYG income documentation, specialist non-bank lenders assess bridging applications using alternative documents such as BAS statements, bank statements, or accountant letters — making bridging loans accessible to business owners and self-employed applicants.

How quickly can bridging finance be approved in Australia?

With a specialist non-bank lender, bridging finance can be assessed and conditionally approved in 5–10 business days, compared to 4–6 weeks at a major bank. Speed is critical when a target property has a tight or short settlement timeline.

This article is general information only and does not constitute financial or credit advice. All applications are subject to credit assessment by MPFG Capital (ACL 553698).