Exit by sale: how lenders assess a property or business sale

Selling something is the most natural way to end a bridge. You borrow against the property you’re about to part with, and the sale pays the loan back. It’s the exit behind buying before you sell, releasing cash from a listed property and bridging to a business sale.

But “we’ll sell it” covers a very wide range of certainty. This page is about how a lender tells the difference.

How far along is the sale?

This is the single biggest factor. The further along, the firmer the exit.

Stage	What the lender sees	Strength
Not listed	An intention	Weak
Appraised, about to list	A value range and a plan	Fair
Listed, campaign running	Market testing under way	Moderate
Offer accepted, not exchanged	A likely price, not yet binding	Moderate to good
Exchanged, conditional	A binding price with conditions	Good
Unconditional, settlement booked	A date and a price	Strong

A bridge against an unlisted property is an open bridge: very doable, but it needs more headroom, a longer term and a plan B. A bridge against an unconditional contract is close to a timing exercise.

What value evidence will be needed?

• An agent’s appraisal from someone active in that property type and area.
• Comparable sales, ideally recent and similar.
• A formal valuation, often commissioned by the lender.
• Anything affecting value: leases and tenants, zoning, building condition, environmental issues.

Expect the lender to work from a conservative figure. That’s not pessimism; it’s the headroom that protects everyone if the sale price comes in lower.

What comes out of the proceeds?

The exit isn’t the sale price. It’s what’s left for the bridge after everything else is paid:

1. Any existing mortgage on the property being sold.
2. Agent’s commission and marketing costs.
3. Legal and conveyancing fees.
4. Settlement adjustments for rates, land tax and outgoings.
5. Tax effects: commercial property sales are generally subject to GST unless an exemption such as a going concern applies, and a capital gain may arise. The ATO’s page on selling commercial premises covers GST, the margin scheme and the small business CGT concessions.

Our bridging calculator takes the sale price and selling costs and shows net proceeds, end debt and exit cover.

Have an appraisal and a campaign plan? Get a view on your sale exit in about a minute.

What can delay a sale settlement?

Some of the most common hold-ups are avoidable:

• No ATO clearance certificate. Since 1 January 2025, foreign resident capital gains withholding applies to property of any value at a 15% rate. Australian resident vendors need a clearance certificate at or before settlement to avoid withholding. The ATO says certificates can take up to 28 days to issue and recommends lodging at least 28 days before settlement. Our clearance certificate guide explains how.
• Buyer’s finance. A contract “subject to finance” can stall or fail.
• Title or contract issues that need correcting.
• Tenancy matters where the property is leased.
• Discharge paperwork from existing lenders.

Each is a reason to take a term with buffer beyond your expected settlement date.

How can you make a sale exit stronger before you borrow?

• List before you borrow, or at least get an appraisal and campaign plan.
• Price to sell within the term, not to test the market.
• Apply for your clearance certificate as soon as you decide to sell.
• Line up your conveyancer early and deal with title issues now.
• Decide your walk-away price and check the numbers work at that figure.
• Write down plan B in case the sale doesn’t happen in time. See what happens if the property doesn’t sell.

An illustrative example

A builder’s yard is under contract for $1.35m, conditional on the buyer’s finance, with settlement in 60 days. There’s a $300k mortgage on it and selling costs of about $40k. Net proceeds for the bridge are around $1.01m. The builder needs $700k now for a development site deposit and costs.

The lender sizes the bridge against the net proceeds, takes the yard and the builder’s home as security, and sets a five-month term to allow for the buyer’s finance to fall through and the yard to be resold. The builder applies for a clearance certificate the same week. (Illustrative scenario.)

Does it matter who the buyer is?

It can. Lenders look at the buyer when the sale is conditional, because the buyer’s position decides whether the contract completes. A buyer with finance already approved, or buying with cash, makes a firmer exit than one who needs to sell their own property first. For commercial property, a buyer who is also a tenant or neighbour may be more motivated.

You don’t need to share private details about the buyer, but your conveyancer can usually confirm the contract conditions and their status. That, plus the deposit paid, gives a lender a reasonable view of how likely the sale is to complete.

Let the sale do the heavy lifting

If you’re selling, your exit is already half built. Tell us the property, the sale status, the expected price and what you need now. It takes about 60 seconds, there’s no credit check when you first enquire, and your details aren’t passed around to other lenders. A real bridging specialist calls you to work through timing and numbers.

Please describe exactly where the sale is up to, including conditions. It’s the detail that decides the structure.

Put your sale exit to work →