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The bridging loan provider has seen its securitisation facility increase to $250 million, enabling it to support $1 billion in transactions a year.
Non-bank bridging finance lender Bridgit has said it will be able to write more business after its securitisation facility was increased to $250 million.
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The facility, arranged by Bridgit’s senior financier Citi, will allow Bridgit to write larger volumes, have greater credit policy flexibility and support its investment in further technology capabilities, including streamlining automation and integrating AI for credit decisioning and operational efficiencies.
In total, the facility will help Bridgit support $1 billion in annual property transactions.
The lender welcomed its expanded facility, saying that the upsized investment would enable it to help more Australians buy a property before they sell their existing one, by unlocking their property equity.
Aaron Bassin, co-founder and CEO of Bridgit, said: “The upsized funding reflects the growing market confidence in Bridgit’s innovative solutions, further accelerating our mission to empower Australians with access to bridging finance.
“We’re at a pivotal moment in fintech where non-bank lenders are stepping up to fill the gaps left by traditional institutions and the competitive landscape is intensifying across the financial services industry. With this additional lending capacity, Bridgit will not only expand our growth trajectory but also introduce greater credit policy flexibility, allowing us to diversify our offering and cater to a broader range of property transactions, including higher-value homes.”
The bridging finance lender has reportedly seen strong demand for its products in recent months, having seen a 375 per cent increase in broker applications (volume of broker applications in July and August 2024 versus July and August 2023).
It has grown its broker network by 93 per cent over the past year, expanded its broker support team, and launched several new broker partnerships in recent months.
Bassin said: “Our goal is to enable home owners to unlock the potential of their property equity, providing the flexibility to buy their next property before selling their current one. We’re providing a product to Australian home owners who need financial agility during significant life transitions.
“In today’s fast-moving real estate market, bridging finance is often the decisive factor between securing a dream home and missing out.
“As interest rates begin to ease and market competition increases, property will continue to be a cornerstone of wealth for Australians. Bridgit is here to ensure that home owners can leverage their property assets to make the most of these opportunities.”
You can find out more about the boom in bridging loan demand – and how brokers can harness it – in the November 2024 edition of The Adviser magazine, out now! Not yet a Premium Member? Subscribe here to never miss an issue.
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