Macquarie has increased its funding to Australian bridging lender Bridgit, The Australian Financial Review reported.

With Citi as its other backer, Bridgit now has A$1.7 billion in total funding.

The capital comes from Macquarie’s commodities and global markets arm.

Bridgit lets property owners tap up to A$10 million in home equity, often to buy a new home before selling the old one.

Alhad Bhalerao, a division director at Macquarie, said the bank was adding funds as Bridgit meets rising demand from Australian homeowners.

Since it began five years ago, the company says it has helped 10,000 borrowers and backed over A$8 billion in property deals. Around 80% of its loans come through mortgage brokers.

Co-founder and CEO Aaron Bassin said Australia’s big four banks are its main rivals.

In his view, their processes are not set up for short-term loans, which has helped Bridgit gain market share.

Macquarie is itself a rival, as its banking arm offers bridging loans.

Bridgit has spent over A$15 million on an AI system that checks borrower risk. It says some loans can be approved in two minutes.

According to the company, loan applications rose 28% last quarter and lending more than doubled last year.

In today’s buyer’s market, Bassin said more borrowers use the loans to move up to homes they once could not afford.

Bassin said the loan book has had no losses and keeps loan-to-value ratios below 60%.

This low-risk profile, spread across Australia, draws investors such as Macquarie and Citi, he added.

Featured image: Edited by Fintech News Australia, based on image by Macquarie via its website and Magnific.