Upsizing or Downsizing Your Home

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 Maybe the family has outgrown the current home. Maybe the kids have moved out and there’s suddenly a lot more house than you need.

Whatever the reason, buying your next home can look quite different from buying your first.

You may already have a home loan, equity in your current property and a decision to make about whether to buy first or sell first.

 That’s where a little planning can make things much clearer. 

 Before making the move, it helps to understand things like:

• How much equity you have in your current home
• How much you may be able to borrow
• Whether to sell your current home before buying
• What happens to your existing home loan
• The costs involved in buying and selling
• Whether bridging finance may be an option

If you’re downsizing, you may also be looking at whether the move could reduce your home loan or leave you with funds remaining after the sale.

 This is often the big question.

Sell first: You’ll generally have more certainty around how much money you have available for the next purchase, but you may need somewhere to live between properties.

Buy first: You can secure your next home before selling, but you need to understand how the purchase will be funded while you still own your existing property.

In some circumstances, bridging finance may help cover the gap between buying your new home and selling your old one.

There are pros, cons and lending requirements with each approach, so it helps to understand the numbers before making a decision.

Whether you’re looking for an extra bedroom, a bigger backyard or a home that’s a little easier to maintain, you can understand the lending side before the For Sale sign goes up.

The Home Loan Nerds can help you work through your equity, borrowing options and the different ways your next purchase may be structured — all explained in plain speak.

We know a lot about home loans so you don’t have to.