bridging finance on property sale

Did you know you can get an advance on the sale of your house?

The process of selling a property is complicated.

Delays often result in the sale proceeds not being paid out when you need them. When this happens, you can get bridging finance.

This cash advance on the sale of your property allows you to make a down payment on your new home, pay the removals company or cover the costs associated with the sale of your house.

Why delays might occur

Delays can happen for a number of reasons that are out of your control.

These commonly include delays at the transferring attorneys, the deeds office or because the new owner’s bond registration takes longer than expected.

What is a property bridging loan?

Bridging finance is a short-term advance of funds that’s paid to you while you wait for the transfer to be concluded.

If you have documentary proof that the sale has been finalised and you’ll be receiving the agreed purchase price of the property, the money is transferred into your bank account within 48 hours.

How much can you get as a cash advance against the sale of your property?

Usually, finance providers are willing to advance up to 75% of the net proceeds of the sale.

For example, if your house sold for R6.5 million and the costs and outstanding bond on the property are R3.5 million, you can apply for bridging finance of R2.25 million.

That’s 75% of R3 million.

Why is it useful to get a loan against the sale of your property in South Africa?

The delayed transfer of funds from the sale of your property can lead to numerous financial headaches.

You may miss out on your new dream home, be penalised for the non-payment of levies or taxes or be forced to delay renovations because you don’t have sufficient liquidity to cover the costs.

Bridging finance ensures you have access to the money you need to pay all the expenses associated with the sale. Examples are capital gains tax, municipal rates and taxes, compliance certificates and bond cancellation costs.

It also gives you more leeway when it comes to moving into and decorating your new home.

The importance of using an NCR-registered bridging finance company

Cash advances, including bridging finance, attract interest and fees.

In South Africa, the amount finance providers charge in respect of these extra costs is subject to the National Credit Act (NCA).

When the company you’re dealing with is registered with the National Credit Regulator (NCR), the rates charged are compliant with the Act.

When the fees and interest charged are higher than those defined in the Act, you’re entitled to lodge a complaint with the NCR.

What if a finance company is not registered with the NCR?

Finance providers that aren’t registered with the NCR – or refer to bridging finance as a discounting agreement rather than a credit agreement – are not recommended.

They’re known for charging exorbitantly high fees, levies and interest rates.

Importantly, there’s no regulating body to intervene on your behalf.

How to get a property bridging loan from lamna

At lamna, we offer bridging finance of up to 75% of the proceeds of the sale of your home as part of our asset-based loans portfolio.

All that’s required to secure the funding is a signed deed of sale, signed transfer documents and guarantees of the purchase price.

Once the paperwork has been processed, the funds are transferred into your bank account.

Why take bridging finance on property with lamna?

We are licensed by the Financial Services Board (FSB) and registered with the NCR.

The fees and interest charged on our products fall within the legal limits set by the NCA.

The terms of the finance agreement are discussed with you and clearly outlined in a signed contract.

If the sale of your home has been delayed and you’re struggling to meet your financial obligations, you can enjoy the benefits of getting an advance on the sale of your house.

Call lamna now on 086 111 2866 or apply online – the easy way of getting bridging finance on property.

Complete our Online Application Form

Illustrative example

Client borrows R10,000 for 90 days.

Loan Amount Repay Terms Monthly Repayment Total Repayment Initiation Fee Monthly Fee
(Interest + Service charge)
R10 000 3 months R568.40 R12 902.20 R1 197 R560 60%

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APR & Loan repayment period

Fixed rates range from 36% to 60% APR and payment options range from minimum 3 to maximum 24 months. Apart from the initiation and monthly fees shown below, the only additional fee is credit life insurance if the borrower does not have this already.


All accounts may be renewed if they are up to date.


All payments are made via EFT or direct deposits into Lamna’s bank account. There are no debit orders.


Non-payments may result in the matters being escalated.

Illustrative example

Client borrows R10,000 for 90 days.

Loan Amount Repayment Period Monthly Repayment Total Cost of Loan Initiation Fee Monthly Fee
(Interest + Service charge)
R10 000 3 months R568.40 R12 902.20 R1 197 R560 60%