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Funding

Home lending fintech moves in on $14.6 million Series A

- June 11, 2024 < 1 MIN READ
real estate
Photo: AdobeStock
Sydney fintech Bridgit has raised $14.2 million in a Series A as the non-bank lender looks to offer bridging loans to homeowners moving house.

The round was led by existing investor OIF.

Bridgit, founded in 2021 as TechLend, previously raised $7.5 million two years ago in a round co-led by OIF Ventures and Perennial Partners.

The property lender offers short-term bridging loans for up to 12 months for people looking to buy a new house before they sell their old one, hoping it will cash in on older generations looking to downsize.

Changes to the superannuation rules in recent years mean that people over 55 can sell their property and make a non-concessional contribution of up to $300,000 from the proceeds to their superannuation fund.

The fintech charges just under 10% interest on loans between $300,000 and $4 million, along with a 1% establishment fee, with loans approved with a day and often in less than an hour. It will lend up to 80% of the value of the current property and is currently writing around $600 million in lending annually.

A typical loan is for around $1 million and repaid within four months.

Another proptech with a similar focus, Downsizer, banked $3.75 million in Seed round last year to help Boomers move house.