Separation Finance Brokers Alexandra Headland

Setting Up a Bridging Finance Loan

Case Study: Bridging Finance Support for a Separating Couple in Alexandra Headland, Queensland
Brokered by Loanright Financial Services

Client Background

In mid-2025, Michael and Rachel*, a married couple in their early fifties, decided to separate after nearly 20 years of marriage. They had shared a beautiful four-bedroom home overlooking the ocean in Alexandra Headland on Queensland’s Sunshine Coast. The property had been their family base for more than a decade and was their most significant shared asset.

Although the decision to part ways was mutual and amicable, the couple faced a major financial challenge. Michael intended to purchase a townhouse nearby to stay close to their adult children, while Rachel planned to downsize and eventually buy a smaller unit after the family home was sold. The problem was timing: Michael found an ideal townhouse much sooner than expected, but the couple’s current property had not yet been listed for sale. Without access to the equity tied up in their shared home, Michael had no way to settle on the new property before the sale of the Alexandra Headland house.

The Challenge

The Alexandra Headland home was valued at approximately $1.4 million, with an outstanding mortgage of $480,000. Michael wanted to purchase a new townhouse priced at $850,000. He planned to use his share of the equity from the family home to fund the purchase and reduce long-term debt. However, the property market was competitive, and the townhouse required a quick settlement.

Traditional bank financing was not suitable. Applying for a standard home loan while still jointly owning a high-value property with significant debt presented hurdles. The banks required proof of sale or settlement of the existing property to release sufficient funds. Waiting for the home to sell risked losing the new townhouse.

Turning to Loanright Financial Services

At the recommendation of a family friend, Michael and Rachel contacted Loanright Financial Services, a Sunshine Coast-based mortgage brokerage with a reputation for handling complex financial situations. They scheduled a joint meeting at Loanright’s Birtinya office, where senior broker Karen Hughes listened carefully to their goals and the sensitive nature of their separation.

Karen explained that a bridging finance loan would allow Michael to purchase the new townhouse immediately, while giving both parties the time needed to prepare and sell their Alexandra Headland home. A bridging loan would “bridge the gap” between buying the new property and selling the existing one, with repayment coming from the eventual sale proceeds.

Financial Assessment and Strategy

Loanright carefully assessed both Michael and Rachel’s financial circumstances to ensure the loan would not place unnecessary strain on either party. Key details included:

• Current Property: Valued at $1.4 million with a $480,000 mortgage.
  
  
• New Property: Purchase price of $850,000.
  
  
• Estimated Costs: Stamp duty, legal fees, and moving expenses brought the total funding required to around $880,000.
  
  

The couple’s “peak debt”, the total amount owing during the bridging period, would be approximately $1.36 million (the existing mortgage plus the bridging loan). Loanright helped structure the loan so that only interest on the bridging portion needed to be paid during the transition period, easing cash flow concerns.

Because the Alexandra Headland home had not yet been sold, an open bridging loan was recommended. This type of loan provides up to 12 months to sell the existing property, giving Michael and Rachel the flexibility to market their home properly without feeling pressured to accept a low offer.

Execution

Karen worked with a trusted lender from Loanright’s network to secure competitive terms for the bridging loan. Within three weeks, Michael was approved for the loan and able to settle on his new townhouse on time. The arrangement allowed Rachel to remain in the family home while preparing it for sale, ensuring both parties felt secure and supported during the transition.

Loanright also coordinated with the couple’s conveyancer to make sure legal obligations were clearly defined. Michael was responsible for the new bridging loan, while Rachel remained on the existing mortgage until settlement of the family home. Clear documentation prevented confusion and maintained transparency.

Outcome

Within five months, the Alexandra Headland home sold for $1.45 million, slightly above the valuation. The proceeds from the sale allowed Michael to repay the bridging loan in full and left both parties with the agreed share of equity to begin their new lives. Rachel subsequently purchased a smaller beachfront unit using her share of the funds, also with Loanright’s assistance in arranging a standard home loan.

Client Reflection

Both Michael and Rachel expressed relief and gratitude for the guidance they received from Loanright Financial Services. Despite the emotional difficulty of separation, they were able to focus on their personal transitions without being overwhelmed by financial uncertainty.

“Loanright made what felt impossible, actually quite straightforward,” Michael said. “They explained everything in plain language and gave us options we didn’t know existed.” Rachel added, “It was reassuring to have a broker who treated us both fairly and helped us move forward with dignity.”

Conclusion

This case illustrates how Loanright Financial Services provides more than just lending solutions, they offer compassion, structure, and expertise during life’s most challenging moments. By brokering a bridging finance loan tailored to Michael and Rachel’s unique situation, Loanright enabled a smooth property transition and helped both parties secure stable new beginnings in Alexandra Headland.

*Names changed for privacy.