Kurzfristig flüssig werden: Überbrückungskredit – Vorteile, Risiken und wichtige Tipps

When someone wants to move to another city and look for a property there, they find a nice house quickly. The priority is to buy it swiftly before someone else does. However, if the proceeds from selling their previous home are needed to finance the purchase, and that money is not yet available, a bridging loan could be beneficial. There are seven important points to consider.

Firstly, a bridging loan is also known as interim financing. It is a short-term loan designed to close a temporary funding gap, according to Thomas Mai from the Verbraucherzentrale Bremen. It is typically used in property purchases when consumers want to buy a new property, but the proceeds from selling their existing home have not yet become available. The loan bridges the gap until the expected payment arrives, as Mai explains.

Secondly, the duration of bridging loans is usually a few months to a maximum of two years. The loan period must be foreseeable, says Jörg Buschan, a syndic and expert for credit law at the Federal Association of German Banks. Often, bridging loans have variable interest rates that fluctuate depending on market conditions. Occasionally, banks require borrowers to secure a long-term mortgage with them later, Mai states. In his opinion, the shorter the loan period, the easier it is to calculate the costs.

Thirdly, a bridging loan can be useful when temporary money is needed, but financial means will come in the foreseeable future. It helps smooth out a financial transition period. Mai emphasizes, however, that a bridging loan is not suitable for replacing missing equity or compensating for a fundamentally insufficient funding situation.

Fourthly, the advantages of a bridging loan include quick liquidity and short-term availability. When a borrower takes out such a loan, they can often repay the sum entirely before the agreed time. Some banks do not charge a prepayment penalty, Mai says. Unlike other loans where a fee is charged for early repayment, a bridging loan allows homeowners to sell their previous property without feeling pressured. This provides a degree of planning freedom and security.

The costs of a bridging loan depend on several factors, primarily the loan amount, duration, and creditworthiness, says Buschan. Creditworthiness also plays a significant role, influencing the interest rate a borrower pays. Higher rates may apply if the borrower's Schufa assessment or income is lower. Mai explains that the exact rate depends on each individual case, considering factors like the Schufa evaluation and income.

The downside of a bridging loan is higher interest rates compared to long-term loans, as it is a short-term financing solution. Some borrowers pay only interest initially, without repaying the principal. Mai highlights that a significant risk is overestimating the sale proceeds of the previous property. If the actual sale amount is lower than expected, a larger funding gap may occur.

Unexpected delays in the sale can also extend the loan period and increase interest costs. Another concern is that extra expenses may arise during the transition, such as paying off loans for both the old and new properties, as well as ongoing maintenance costs and insurance. Overestimating one's financial capacity can lead to significant financial strain.