Upgrading or Downsizing Your Home

Sell first or buy first?

Selling first means you know exactly how much you have to spend. The downside is that you may need to rent or move twice if you don't find a home in time.

Buying first means you can secure the home you want. The downside is that you may carry two loans for a while if your sale takes longer than expected. Either way, getting pre-approval early helps you act with confidence.

Bridging finance

A bridging loan lets you buy before you sell. The lender looks at the combined debt on both properties for a set period (often six to twelve months), usually charging interest only while you sell. When your current home sells, the proceeds pay down the loan. Lenders assess whether you can manage the 'end debt' that remains after the sale. See bridging loans.

Upgrading: using your equity

Equity is the difference between what your home is worth and what you owe on it. It can go towards the deposit and costs on your next home, including stamp duty. Use our property buying cost calculator and property selling cost calculator to estimate the costs on both sides.

Downsizing: things to check

Keeping your current home as an investment

Some people keep their current home and rent it out. Lenders count part of the expected rent, but the existing loan stays in your name and your borrowing power needs to cover both loans. Speak to your accountant about the tax side before you decide. See investing in property.

We map out the timing and costs of selling and buying, compare bridging and other options across our panel and keep both transactions on track. In most cases there's no broker fee to pay.

Frequently asked questions