A bridging loan is a loan type wherein a special short-term loan is rendered for covering the price of the second property bought by a customer. It can be taken as an additional loan on the existing home loan. Bridging loans are considered to be more expensive due to the presence of additional risk, which also makes the interest rates higher. As the name suggests, the bridging loan helps in creating a bridging gap and gives time to the buyer for selling the existing property while purchasing a second property. During this time, the home buyer is charged the interest amount on both the properties.