Sell my home and buy another

Bridging finance – exploring the options

If you are thinking of upgrading or downsizing, planning is the key to a successful transition. This may be first selling your existing home before buying another home, or organising bridging finance so that you can purchase your new home first. Some loans are portable, which means you can switch the property you use to secure your loan – subject to the lender’s approval. This would still be a good time to review your current loan and examine the options available to you. Some questions to think of are:

Will I need to increase my loan?
If the cost of your new property including purchase costs is higher than your existing loan facility, you will need to consider paying the difference yourself or increasing your loan. I can help you work out how much you can borrow.

What are the costs?
The costs associated may include fees for discharging your current loan if not portable, break costs on the loan, establishment and valuation fees for the new purchase, government stamp duties on the new property, building inspections, moving costs and other fees or charges payable to your old or new lender. If you do decide to move, download a copy of my Moving Checklist.
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Can I get bridging finance?
Bridging finance allows you to buy your new property first before selling your existing home. It means you will keep your existing home loan as well as taking on the new home loan. During this time, the interest is paid on both loans so it is important to make sure that this is an affordable option before taking on this expense.
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Is my current loan portable?
Not all loan products or lenders will offer this feature. You will need to check your Loan Agreement to see if you can “substitute security”. I can make these enquiries on your behalf if you are uncertain or unable to find the answers.
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Should I move or renovate?
The two most important factors for most people are: cost to move to a better property and avoid the inconvenience of renovations and weighing up the advantages and disadvantages of moving to another suburb. Download a copy Renovate vs Move checklist to give you a handy reference.
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