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Bridging loans and interest rates: how do we calculate the risk?

Risk value
Bridging loans | Haley McPherson

Bridging finance is a form of short-term borrowing, designed to help property owners “bridge” a temporary finance gap in a wide range of situations. The interest rates that apply reflect the short-term nature of this type of arrangement. As such, depending on the agreement with the lender, borrowers can expect to be charged between 0.55% to 1% interest per month on the amount of capital borrowed.

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