Ways to buy your next home
Timing your move can feel like balancing a few spinning plates.
Depending on your budget, your timeline and your appetite for risk, there are four common ways to approach your next purchase.
Next Home Loans
Whether you are upsizing, downsizing or relocating, having the right team in your corner makes every decision simpler.
Your next property move comes with exciting options that simply were not on the table the first time around. You are no longer saving from scratch. Instead, you have the equity built up in your current home to help fund your deposit.
The biggest challenge is usually working out the timing. You might be wondering whether to sell first so you know your exact budget, or buy first to secure the property you love and sort bridging finance later. You might even want to keep your existing home as an investment property and buy your next place alongside it.
Every path involves different moving parts, from bridging terms and portable loan structures through to bank stress testing and Reserve Bank debt to income limits. We sit down with you to crunch the numbers on your usable equity, map out the timeline and compare solutions across our panel of lenders so you can take your next step with clarity and total confidence.
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1. Selling before you buy
Selling your existing home first gives you complete certainty over your budget. You know down to the dollar how much equity you have to put towards your next purchase, so there is no guessing or stress about overlapping mortgages. If settlement dates do not line up perfectly, you can explore a longer settlement period with your buyer or organise short term accommodation while you house hunt with an unconditional budget in hand.
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2. Buying before you sell
If you spot your dream home before listing your current property, you can look at buying first. This gives you time to purchase without feeling rushed to accept whatever is on the market. To make this work, we look at bridging finance, which is temporary lending that covers the cost of your new home until your current one sells.
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3. Same day settlement
Also known as simultaneous settlement, this is where the sale of your current home and the purchase of your new property settle on the very same date. The funds from your sale flow directly across to complete your purchase, so you move out of one and straight into the other. Your solicitor and your mortgage adviser coordinate behind the scenes to make sure the sequence of funds and documents runs smoothly.
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4. Keeping your current home as a rental
If you prefer not to sell, you might choose to retain your current home as an investment property and purchase your new home alongside it. You can often use the equity in your existing home as the deposit for your new address. Because banks assess investment properties under different rules than owner occupier homes, we walk you through the rental income numbers and debt to income requirements to ensure your cash flow stays strong.
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