Bridging loan calculator
What a bridge costs over its term, itemised. Interest, establishment, management and valuation, off our published schedule rather than a headline rate.
Indicative cost of the facility
$54,000
over 12 months on Alphacon Bridge, from 8.50% p.a.
- Interest, from 8.50% p.a.
- $42,500
- Establishment fee, from 1.65%
- $8,250
- Loan management fee, $250 per month
- $3,000
- Valuation, from $250
- $250
- Risk fee
- Nil
Alphacon Bridge carries no risk fee, so nothing is missing from the figure above. Rates are indicative “from” figures and every number is confirmed in the letter of offer before your client signs.
Compare the total, not the rate
A headline rate is the least useful number in short-term lending. On a six-month facility the establishment fee can cost more than the interest, and a monthly management fee charged as a percentage of the limit behaves very differently to a flat dollar figure. Two lenders quoting the same rate can be thousands apart by the time the facility repays.
So price the whole thing. Put the same amount and the same term through this, then ask the other lender for their total over the term with every fee named, including the risk fee. That is the comparison your client is actually making.
Frequently asked questions
What does a bridging loan actually cost?
Four things, and interest is only one of them: interest on the facility for the months it runs, an establishment fee as a percentage of the loan, a loan management fee charged monthly, and the valuation. A risk fee applies on every product except Alphacon Bridge, priced on the security, the LVR and the exit.
Why does this estimate exclude the risk fee?
Because it is quoted per deal rather than off a table, so any number here would be invented. Alphacon Bridge carries no risk fee at all, which is why an estimate on Bridge is complete and one on Fast is a floor.
Is interest paid monthly or at the end?
Either. Interest can be prepaid from the advance at settlement or serviced monthly, and prepaid interest counts toward peak debt for the LVR calculation. This estimator shows the total interest cost over the term either way.
Is there a fee for repaying early?
No discharge or exit fee on eligible products. Alphacon Bridge takes 14 days notice and Alphacon Fast takes 30, and you stop paying interest from the day it repays.
How accurate is this estimate?
It uses the published rate and fee schedule, so it is right for the inputs you give it. What moves it on a real file is the rate, which is a "from" figure priced on the deal, and the risk fee where one applies. Every number is confirmed in the letter of offer before your client signs.
Which product should I price it on?
Alphacon Bridge where the file is clean: credit above 600, an accountant's letter or prepaid interest, and a dated exit. It is the cheapest money we write and carries no risk fee. Alphacon Fast where the date or the file will not wait, on self-declared income with no credit score assessed.
General information only
This estimator applies our published rate and fee schedule to the figures you enter. Rates are indicative “from” figures and a risk fee applies on every product except Alphacon Bridge, quoted per deal and not included here. It is a general guide, not an offer of finance or credit advice, and it does not take your circumstances into account. Every facility is subject to credit assessment, valuation and satisfactory security, and every figure is confirmed in the letter of offer.