Hi Amie,

Great question!

As always, the best option for you will ultimately depend on your personal situation and your property goals.

And timelines can be tricky to line up, so working through your personal plan of attack with a home loan expert is the way to go.

But here are the most common scenarios:

👉Sell before you buy

You’ll know exactly how much money you have available to put towards your next purchase (and have that money on hand), plus you won’t feel rushed to sell your property or need to include a “Subject to Sale” clause in your offer.

However, you may end up paying more for your new home if property prices rise over time. And you might need to factor in costs for temporary accommodation while you’re in between homes and could end up moving twice in a short amount of time.

👉 Buy before you sell

You could land *that* dream property, you might get more for your property by selling later and you could avoid temporary accommodation costs AND the hassle of moving twice.

But... you may feel extra pressure to sell within a certain timeframe, you’ll need either equity or cash to front the deposit and fees and may end up paying two mortgages at the same time.

This can be seen as riskier but could be a good move if you have some equity to play with (or lots of cash). If you’re considering this option, you should definitely line up a chat with your broker beforehand.

👉 Get a “bridging loan”

If you don’t have the cash or equity available to buy before you sell, you can also consider a bridging loan (or bridging finance) - a short-term solution if you need to buy before you sell.

If approved, your lender will give you with an additional loan (often with a much lower rate) to fund up to 100% of your new purchase (plus fees and costs). This typically gives you up to 12 months to sell your existing home. Hello breathing room!

But... you’ll still need to consider the added costs of paying your current home loan with the added bridging loan in play.

While less common, other options include turning either your current or new property into a rental or trying to buy and sell at the same time using a “Subject to Sale” clause.

So many options!

Your best bet? Speaking with your broker first (here to help), having a plan in place so you have a good idea of approval timing, getting to know the market and avoiding the need to sell quickly if you can!

Good luck,

Catherine

Catherine Fury
Finspo Home Loan Expert