Less than a year after launch, the bridging loan specialists has passed $1 billion in loan applications as demand for a “buy first, sell later” model grows.
Non-bank lender Bridgit (formerly known as TechLend) has announced that it has surpassed $1 billion in loan applications, less than a year after being founded by mortgage broker Nick Jacobs and capital markets specialist Aaron Bassin.
The lender specialises in what it calls a “buy first, sell later” model; bridging loans that enable borrowers to secure their next home before selling their existing property.
Reportedly, 60 per cent of Bridgit applications were for downsizers and came mainly from Baby Boomers.
According to the non-bank lender, many older Australians have decided to capitalise on the rising property prices over the last 12 months (particularly around the capital cities), which have risen 11.2 per cent nationally.
The lender stated that Sydney, Melbourne and Brisbane buyers accounted for the majority of its clients, with Sydney accounting for 40 per cent, and Melbourne and Brisbane the remaining 60 per cent combined. Its average loan size is $1 million.
Chief executive and co-founder Mr Bassin said the lender was “extremely thrilled” to have reached $1 billion in loan applications, adding that it gives him confidence that their product is “helping Australians make the most of property opportunities”.
“Our mission has always been to challenge the traditional lending model and provide Australians with a new solution that actually helps them progress,” he said.
“Our customers have loved the flexibility of being able to use a fast-bridging loan solution — providing them with an option to buy first and offering many benefits, particularly for retirees or downsizers who want to buy on their terms without having to sell first.”
The bridging loan fintech has been on growth path recently, having raised $13.2 million in equity and securing $100 million in venture debt funding.
Bridgit also recently appointed Loan Market’s former director for growth, Stephen Doyle, as its new head of distribution.
Mr Doyle’s new role has him responsible for building Bridgit’s broker offering and business development team, using his previous experience to engage aggregators and strengthen the lender’s offering.
Mr Bassin said at the time: “Stephen’s previous extensive experience and his expertise in building relationships and teams will be a great asset to the next stage of growth for the company.”