Thinking about your next home?

What you can afford next depends on more than your current property value. Your available equity, income, expenses, existing debts, deposit and the costs of buying and selling can all affect your options.

An Aussie Broker can help you understand your current position, estimate your borrowing power and compare home loan options based on what you’re looking to do next.

There’s no single approach that suits everyone. Selling first can give you greater certainty around how much money you’ll have available for your next property, but you may need somewhere to live between transactions.

Buying first can make the move more convenient, but it may mean managing two properties or loans for a period. Your finances, the property market and the timing of each transaction can all influence which approach may suit you.

A bridging loan is a short-term finance option that may help you buy your next property before you’ve sold your current one.

Depending on the lender and loan structure, it can help cover the gap between buying and selling. Bridging loans have specific eligibility requirements, costs and timeframes, so it’s important to understand how the repayments and overall loan will work before proceeding.

It may. Buying another property will usually involve reviewing your home loan, and your new loan may have a different term depending on the lender, loan amount and your circumstances.

For example, taking out a longer loan term may reduce your regular repayments, but it can also increase the total interest paid over the life of the loan. An Aussie Broker can talk you through the available options and their potential impact.

There can be costs on both sides of the move. When selling, these may include agent fees, marketing, conveyancing and costs associated with paying out your existing loan.

When buying, you may need to allow for stamp duty, conveyancing or legal fees, inspections, lender fees and moving costs. The exact costs will depend on your property, location and circumstances, so factoring them into your budget early can help you understand what you may have available for your next purchase.

Downsizing generally means selling your current home and buying a less expensive or smaller property.

If your new property costs less, you may be able to use some of the proceeds from your sale to reduce the amount you need to borrow. What this means for your home loan will depend on your existing loan balance, sale proceeds, purchase price and other buying and selling costs.

That depends on your property goals, finances and what you want from your next home. Downsizing may help reduce the amount you need to borrow or free up some of the equity in your current property, but there are also selling, buying and moving costs to consider.

Before making a decision, it can help to understand what your current property and loan position may mean for your next purchase and speak with the appropriate financial, legal or taxation professionals where needed.