What is a bridging loan?

A bridging loan is designed to bridge the gap between two financial events - most commonly buying a new home before selling your existing one, which often means holding two properties and two debts at once. Bridging loans are typically short term (12-24 months) and are used for property transactions with a clear timeline and a defined exit strategy, such as the sale of your existing property. They can be effective when repayment timing is certain, but they are designed as a short-term solution.

How is a Midkey loan different from a traditional home loan?

A Midkey loan has no monthly payments - principal and interest are deferred to the end of the loan. There is no requirement to prove your ability to make regular repayments, although your ability to pay priority debts is tested. It is available as a second mortgage, so you can keep your existing home loan. There is no fixed loan term - the loan is usually repaid following the sale of your property, subject to the repayment triggers in your contract. At the end of the loan a Midkey Deferral Fee applies: a set proportion of any increase in your home's value over the Agreed Initial Value, payable only if the agreed value increases.

Does a Midkey loan contain a no-negative equity guarantee?

Yes. With a Midkey loan you will never owe more than the value of your home, even if property prices fall. Your loan balance will not exceed your home's market value.

When Midkey may be a better fit?

A Midkey loan may be a better fit where flexibility matters more than timing: accessing equity without selling your home, reducing financial pressure while making decisions, funding renovations, investments or life events, supporting children financially, or consolidating and restructuring debt.

Unlock Equity
With A Smarter Bridging Loan

An Australian first, access your home equity on your terms with Midkey.

It takes less than three minutes to check your eligibility, with no impact on your credit score.

What is the current value of your home?

$1,000,000

$500,000

$10,000,000

How much do you owe on your mortgage?

$500,000

$800,000

How much would you like to borrow from Midkey?^*

^*Including the option to reduce your existing mortgage.

$200,000

$100,000

$300,000

Nearly there! Just enter your details below and submit to find out if you're eligible.

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Disclaimer: This content is provided for informational purposes only and without warranties of any kind. Use of the information is at your own risk.

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Meet Midkey
A modern alternative to bridging loans

For many Australians, the family home is their biggest asset. When plans change, opportunities arise, or financial pressure builds, accessing this equity may be the simplest way forward.

Bridging loans are commonly used when buying a new property before selling an existing one. They’re designed as short-term solutions, with a clear expectation that the loan will be repaid within a set timeframe.

That can work - but it can also create time pressure. It may also be the case that a second mortgage on your existing property could work better for you.

That’s where Midkey is different.

Midkey vs bridging loan

Discover the differences between a bridging loan and a Midkey loan:

Bridging loan

Loan term

No fixed loan term^{^}

Typically, short term (12 to 24 months)

Second mortgage option

Available as a second mortgage, ie, you can keep your existing bank loan

Typically only first mortgage options, ie it replaces your existing bank loan

Interest

Simple interest, and typically at a lower rate

Often charge higher interest that compounds

Deferral Fee

Includes a Deferral Fee, which is a share of any increase in your home’s Agreed Initial Value

No Deferral Fee

Financial flexibility

Access equity with no monthly payments and no fixed loan term.^{^}

Short-term by design. Often requires managing two debts and repaying within a set timeframe

The total LVR of your property, including the outstanding balance of any loan secured by a first ranking mortgage, cannot exceed 80% for owner occupied properties, or 75% for investment properties and apartments.

Information is provided for general comparison purposes only and does not take into account individual circumstances. Loan terms, interest rates, fees and eligibility criteria vary by lender and are subject to change. This information does not constitute financial advice. Before acting on this information, Midkey recommends that you seek independent professional advice.

^{^}Repayment triggers for your Midkey loan are included in your contract. The loan will need to be repaid if you default, if you increase your priority mortgage, if the LVR of your property exceeds 100%, if you move into an aged care, or if you die.

See if Midkey is right for you

Check Eligibility

Property Type

Owner-occupied house

Investment house

Apartments

Apartments/units must be in a complex of no greater than 20, be more than 12 months old, and have a minimum internal floor space of 50sqm.

Eligible Postcodes

Midkey is available in most Australian capital cities.

Check your eligibility

Sufficient Equity

You must have at least 20% usable equity in your owner-occupied house, or 25% for an investment house or apartment.

Usable equity is the portion of your property’s Agreed Initial Value that remains after subtracting any loan amount currently secured against your property.

Type of Home Loan

If you have an existing mortgage, it must be a standard ‘principal plus interest’ home loan.

Australian Citizenship

You are an Australian citizen over the age of 18.

Final Approval

Your application is subject to Midkey’s loan assessment and final approval.

What makes Midkey different?

Not all loans are created equal. Explore how Midkey offers a smarter, more flexible way to unlock your home’s value.

Bridging
Loans

Reverse Mortgage

Unregulated Loans

Traditional Home Mortgage

No monthly payments

Looks at more than just your income

Long/no loan term

Available in addition to an existing mortgage

Welcomes a broad range of borrowers (18+)

Simple* accruing interest

Cheaper loan option

*Click here to learn more about ‘simple vs compounding’ interest.

Availability depends on lender and loan terms.

Trusted by borrowers
across Australia

Hear from Australians who made the Midkey move. Check out our latest reviews.

“The birth of your product has, without debt, given me a new lease on life and opportunity for myself and my kids. I can pay the school fees, renovate the way I want to, and see the house to pay back the loan.”

Cheryl (52)

Coogee

“By using my Midkey to pay off some of my existing mortgage, I have reduced the monthly payments by more than 50% so now I feel less constrained, freer.”

Mark (37)

Kellyville

“My only other option was to sell and downsize, but I hadn’t planned to do that for another five to ten years. Without Midkey I would have lost my life as it was.”

Dianna (68)

Mittagong

“I admit I was sceptical at first, but then I looked online and did my research to understand the model, and it made sense.”

Glenn (48)

North Epping

“Our dream of giving our eldest daughter a lump sum towards her deposit has come true. Instead of buying a one-bedroom apartment, now she can buy a three-bedroom house in a better suburb.”

Elizabeth (60)

Brisbane

Frequently asked questions

Take a look at the most commonly asked questions.

Learn more in FAQs

It’s simple. We’re here to help, whenever you’re ready.

Take your time, we’ll be here with helpful tools whenever you’re ready to act.

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Unlock Equity
With A Smarter Bridging Loan

Meet Midkey
A modern alternative to bridging loans