Move First Finance › What is peak debt in a bridging loan?

What is peak debt in a bridging loan?

Peak debt is the total you owe during the bridging period, combining the remaining loan on your current home and the full cost of the new one, including purchase costs. It is the maximum the lender is exposed to before your old home sells.

Written by Ross McFarlane, Licensed Mortgage Broker (Credit Representative 526725). About the author

Why this matters

Peak debt is the figure lenders assess most closely, because it is your largest exposure. They check that the eventual sale and your end debt are realistic against it. A high peak debt with an uncertain sale price is where bridging gets risky. Getting a realistic estimate of your current home value keeps peak debt sensible.

The key points

The total owed across both homes during the bridge.
It includes the new purchase and its costs.
It is the lender maximum exposure.
A realistic sale estimate keeps it sensible.

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Last reviewed: June 2026

General information only. This page provides general information about home loans and is not financial or credit advice, a quote, or a guarantee, and your personal circumstances have not been considered. Lending policies, interest rates, fees and eligibility vary by lender and change over time. Always confirm your own situation with a licensed mortgage broker or lender before acting. Ross McFarlane (Credit Representative 526725) is an authorised Credit Representative of Australian Associated Advisers Pty Ltd t/a Keylend, Australian Credit Licence 392169.