Bridge loan for property: how bridging finance closes the gap
A buying opportunity in Germany doesn’t wait for the bank process. Interim finance bridges the time until end financing or the sale proceeds — short-term, against sound security and with a repayment route that is clear from the start. As a loan, under §34c GewO.
Bridging finance: which conditions must a bridge loan meet?
One condition always applies, and it decides the case: the repayment route has to be fixed before the money is drawn. Repayment comes from the sale proceeds or from the take-out financing, not from operating cash flow. Bridge capital costs more than end financing, so the extra cost must be smaller than the value of the opportunity it secures.
What is a bridge loan for, and what must be fixed from the start?
A bridge loan closes the gap between money needed now and a secured inflow later — with the repayment route fixed from the start.
How is a bridge loan structured? It closes a gap in time between a need for money now and a secured inflow of funds later — buying before the old property is sold, a liquidity squeeze in a project, or a fixed deadline. The term is short (months to at most a few years), security is usually a first-ranking land charge, the cost is higher than end financing, and a clear, demonstrable repayment route (exit) is mandatory.
How fast can bridge financing be arranged?
With clean documentation and sound security, commitments within a few days to weeks are realistic — a classic bank process often needs months for the same. Not brokered: purely speculative fix-and-flip models whose repayment rests solely on the future resale. The document checklist.
Interim finance: which situations is a bridge built for?
Typical triggers are buying before selling, a liquidity shortfall in an ongoing project and fixed deadlines such as a notary appointment or the expiry of an option. The repayment route must be fixed before the payout.
- How is a bridge structured? It closes a time gap between a need for money now and a secured inflow of funds later — buying before selling, a liquidity shortfall in the project or a fixed deadline. Short term (from a few months to around four years, depending on the case), security usually a first-ranking land charge, more expensive than the final financing. Brokered as a loan under §34c GewO.
- What is an essential requirement? A clear, verifiable repayment route (exit): a sale, confirmed final financing or an inflow of funds from another source. We do not broker purely speculative fix-and-flip models whose repayment depends solely on the future sale of the property just acquired — they lack the secured exit.
- Do I need a bank for interim finance? Not necessarily. Besides banks, debt funds and specialised lenders also provide short-term capital, often faster. With documents in order and collateral of sufficient value, commitments within a few days to weeks are realistic. Document checklist.
Property interim financing: When does interim or bridge financing make sense? Interim financing makes sense when there is a time gap between the need for money today and a secured inflow of funds later.
There are three typical triggers: buying before selling, a delay in an ongoing project and hard deadlines such as a notary appointment or the expiry of an option.
The condition is always the same, and it decides the commitment: the repayment route must be fixed before the payout.
Repayment comes from the sale proceeds or from the final financing, not from ongoing cash flow. The term is short, and the loan is secured against a property of sufficient value.
Without a sustainable exit, the bridge is the wrong instrument.
Typical triggers:
Buying before selling: You want to buy before the old property is sold or the final financing is in place — the bridge covers the period until the funds come in.
Liquidity shortfall in the project: A delay must not stop the project. Short-term capital secures completion and thus the sale proceeds.
Meeting deadlines: Notary appointment, expiry of an option, payment deadline: when a date is fixed, speed counts for more than the last interest point.
Bridging finance: Is there a fixed current interest rate?
No, there isn’t a fixed current interest rate.
It is determined on a case-by-case basis depending on the property, the term and the repayment method, and is higher than the interest rate on the final financing.
What does speed cost, and which rule makes it worthwhile?
Bridge capital is more expensive than end financing, because it is provided fast, short and at higher risk. That is no disadvantage as long as the maths works out: the extra cost of the bridge must be smaller than the value of the opportunity you secure with it.
- Term — Interim / bridge finance: short — months to at most a few years. Security — Interim / bridge finance: a sound property, usually a first-ranking land charge. Cost — Interim / bridge finance: higher than end financing, but available fast. Prerequisite — Interim / bridge finance: a clear, demonstrable repayment route (exit).
- The exit is mandatory, not optional. No reputable lender provides bridge capital without a plausible repayment route — sale, end financing, or an inflow of funds from another source. We always structure the bridge together with its ending.
- Brokered as a loan under §34c GewO.
Interest rate for bridging finance: How is it set, and why is it higher than the rate for the final loan?
The interest rate is determined on a case-by-case basis, depending on the property, the term and the repayment method. It is higher because bridge finance is provided quickly, for a short period and carries a higher level of risk. It pays off if the additional costs (Mehrkosten) are less than the value of the opportunity you are securing with it.
Alternatives to interim financing: besides banks, debt funds and specialist financiers also provide short-term capital, often more quickly. Without a sound exit, a bridge loan is the wrong instrument.
Property financing for commercial property: When is bridge financing used prior to final financing? If the final structure is not yet in place, bridge financing bridges the gap until then – for example, in the case of a ‘buy before sell’ transaction, a liquidity shortfall in the project, or a fixed deadline. It is repaid from the proceeds of the sale or from the final financing. We always structure the bridge finance together with its exit.
How fast is a bridge commitment compared with a traditional bank process?
With documents in order and collateral of sufficient value, commitments within a few days to a few weeks are realistic — a traditional bank process often takes months for this.
Preparation makes the difference: anyone who provides the right documents immediately and shows a clear exit gets speed. That is exactly where we guide you.
Frequently asked questions
Is bridge financing the same as a subordinated loan?
No. A bridge is usually a first-ranking secured, short-term loan — that we broker under §34c GewO. A subordinated loan is an equity-like, subordinated component; that runs via licensed partners, not via us.
Interim financing for a property: Which amounts and terms are possible?
That depends on the case. For time-limited financing in Germany and Austria, amounts of up to €4 million and terms of up to 4 years are possible, with special repayments of up to 100 % possible at any time, without notice periods. Requirements: assets that can be used as collateral at least equal to the loan, a verifiable repayment route and willingness to accept personal liability. As of 08.10.2026, no commitment, terms per individual case.
Which documents do I need for interim financing?
Four groups: the property (current land register extract, sales brochure or valuation), the repayment route (proof of the sale, of the committed final financing or of the inflow of funds), the schedule with buffer, and the person or company (self-disclosure, proof of income and assets). The more complete the file, the faster the answer. The general list is in the documents checklist.
Do I need a bank for this?
Not necessarily. Besides banks, debt funds and specialist financiers also provide short-term capital — often faster. We choose the source that fits the speed, term and security of your case.
What does your advice cost?
The first check is free for you; we are remunerated by the financing house. For very individual mandates a fee agreement can make sense — we discuss that transparently in advance.
Do you finance fix-and-flip, i.e. short-term buy-to-resell?
No. A bridge requires a demonstrable repayment route — the sale of an existing property or a take-out financing already in place. Purely speculative buy-renovate-resell models (fix-and-flip) whose repayment depends solely on the future sale of the just-acquired object are not something we broker — the secured exit is missing. Developer and project schemes with a sound structure run via developer & project finance.
What if my sale takes longer than planned?
That is exactly why we build in buffers and extension options from the outset. A realistic timeframe for the exit is part of every serious bridging structure — wishful thinking about the sale date is the most common mistake. How the repayment route is reviewed and secured is explained in the wiki: Bridging finance, exit and extension (DE).
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Perini Finance & Property — licensed under §34c GewO for commercial property loans, 650+ banks & capital providers, we know the houses whose lending rules cover interim and bridge finance as a loan, always structured together with its exit.
Related pages
Commercial mortgage in Germany: who finances purchase, holding and projects?
Commercial mortgage in Germany: acquisition, portfolio, development and bridge finance — brokered bank-independently across 650+ banks and capital providers.
Investment property loan in Germany: how do you finance buying and holding?
Investment property loan in Germany: loan-to-value for standing assets, debt service cover, portfolio finance and releasing capital. § 34c GewO.
Property development finance: what does a lender require from developers?
Property development finance in Germany: what lenders require on equity, pre-sales and structure — with examples, across 650+ banks and capital providers.
Commercial property finance: when should you prepare the follow-up loan?
Commercial property finance: prolongation, refinancing or top-up when the fixed-rate period ends — start 6 to 12 months ahead. Bank-independent, §34c.
Mezzanine finance for property projects: when does it pay off?
Mezzanine finance for property projects: subordinated capital as an equity substitute — cost, structure and when it pays off.
Editorially responsible: Olga Nikushkina — owner, §34i GewO (German mortgage brokerage), adviser register D-W-132-ZUCB-95. Specialised in German property financing with an international dimension: non-residents, foreign-currency income, cross-border workers, expats. Siegfried Perini is entered in the German intermediary register under this licence as a person directly involved in brokerage and advice (§ 11a GewO), active in real estate since 1992. Not legal or tax advice.
