The sale price is part of the repayment strategy
In a bridging structure, the existing property's sale proceeds are usually expected to repay a large part of the Peak Debt. The amount left after that repayment becomes the End Debt.
If the property sells for less than assumed — or selling costs are higher — the net amount available to reduce the bridging debt is lower. All else being equal, that difference flows directly into a higher End Debt.
Stress test more than the sale price
A robust bridging review should also consider:
Longer selling period
A delay can add more interest and potentially other costs.
Selling costs
Agent fees, marketing, legal costs and settlement adjustments reduce the net proceeds available.
Valuation versus sale price
A lender valuation is not a guarantee of what the property will sell for.
Required sale milestones
The lender may require marketing or auction action before the maximum loan term expires.
End-debt serviceability
A higher End Debt can affect whether the post-sale loan remains within the planned structure.