Selling first gives you clarity on your budget and avoids juggling two properties, but it might mean renting or moving twice.
You might feel rushed to buy, need short-term housing, or miss out if the market moves quickly. Planning ahead is key.
Having a cash buffer, or access to your equity, can make a huge difference in covering costs while you wait.
Upgrading isn’t just about finding more space or a better location, it’s about getting the timing right.
One of the biggest decisions you’ll face is whether to sell your current home before buying the next. For many Australians, that choice can impact everything from your loan options to your stress levels.
Let’s explore the pros and cons of selling before you buy, and how Aussie can help you make the move with confidence.
The case for selling first
Selling your current home before buying a new one comes with some clear advantages. If you're after certainty, financial control and lower stress levels, selling first may be the way to go.
1. Know exactly how much you can spend
Once your home is sold, there’s no guesswork. You’ll know exactly what funds you have to work with, including how much you can put towards your deposit and what size loan you’ll need.
This can boost your negotiating power when you do find the right home, particularly if you’ve already got loan pre-approval lined up.
2. Avoid holding two mortgages
If you buy first, you might need to carry two loans until your current home sells. This can be stressful, especially if the market slows, or your property takes longer to sell than expected. Selling first removes that pressure entirely.
3. Bypass bridging finance
Bridging loans can be useful, but they often come with higher interest rates, shorter terms, and more financial pressure.
Selling first lets you sidestep that stress and move forward with a standard loan that suits your timeline.
If you are considering buying first instead, Aussie Bridge can help. It’s our dedicated bridging loan solution that takes the guesswork out of buying before you sell, and expert guidance from an Aussie Broker who can align both sides of the move.
4. Reduce financial risk
Without the weight of two mortgages or a bridging loan, you're more financially secure during your transition. You also avoid the risk of selling under pressure, for example, being forced to accept a lower price just to meet a tight purchase deadline.
You might also be interested in: Bridging loans 101: Your guide to buying and selling property
The drawbacks of selling first
While selling first can give you financial clarity, it also creates a window of uncertainty, where you’ve sold your home but haven’t yet found the next one. That gap can be tricky to manage without careful planning.
1. You might need temporary accommodation
If you haven’t found your next home by the time your current one settles, you may need to rent or stay with family. That means moving twice and potentially paying for storage or short-term lease costs.
2. You could feel rushed to buy
Once your home is sold and the pressure is on, you may feel like you need to find the next property fast. This can lead to rushed decisions or even missing out on the home you really wanted.
3. You risk market movement
If property prices rise between the time you sell and the time you buy, you may end up paying more than you planned. That’s especially relevant in fast-moving markets where good homes are in short supply.
4. You may miss the right home
While you’re waiting for your sale to finalise, you might spot your dream property but be unable to make an offer without your finances in place. That can be frustrating if the timing doesn’t line up.
You might also be interested in: How to upsize to a bigger family home
How selling first affects your loan strategy
Selling first changes your borrowing picture, usually for the better. But it does come with some timing considerations you’ll want to plan for.
More borrowing power, less debt
Once you’ve sold, you’ll likely have a larger deposit and a smaller loan size, which can improve your borrowing power. You may also be eligible for better interest rates based on your lower loan-to-value ratio.
Delays in pre-approval
On the flip side, you may need to wait until your sale settles before you can finalise your new loan application. This can slow things down if you haven’t already worked with a broker to model your options in advance.
Aussie can help model the numbers
An Aussie Broker can map out both scenarios, buying before or after your sale, and help you plan your next move.
With access to over 25 lenders**, we can build a loan strategy that suits your timeline, your finances and your long-term goals.
You might also be interested in: Top mistakes to avoid when buying a bigger home
Smart ways to manage the gap
If you do decide to sell first, the next step is working out how to manage the time between properties. Fortunately, there are flexible solutions to bridge the gap.
Rent-back agreements
In some cases, you can negotiate to stay in your home after it sells, renting it back from the buyer for a short time. This gives you extra breathing room without needing to move out immediately.
Early settlement or long settlement
If you’ve already found your next property, you might be able to align the two transactions by negotiating an early or delayed settlement. This works most suitably when both parties are flexible and can help reduce overlap.
Short-term rentals or family support
If you need to move out before your new home is ready, a short-term rental or staying with family could be a practical (if temporary) option. Just factor in the costs of moving, storage, and rent to avoid budget surprises.
Use savings or equity to smooth the transition
Having a cash buffer, or access to your equity, can make a huge difference in covering costs while you wait. The Aussie App can help you track your home equity in real time and make informed decisions about when to access it.
How Aussie can help you navigate the process
Upgrading your home doesn’t have to be a guessing game. At Aussie, we’ve helped thousands of Australians plan their next move and get the timing right.
Here’s how we can support you:
Loan modelling tailored to your timeline whether you sell first or buy first, an Aussie Broker can help you see your numbers clearly and plan with confidence.
Borrowing Power Calculator can quickly estimate what you can afford based on your expected sale price.
Equity insights and app tools to track your property’s value, calculate your live equity, and explore your financial position in real time.
Conveyancing support to streamline your legal paperwork with Aussie Conveyancing and keep your timelines on track.
Seller support if you’re leaning towards selling first, we can connect you with trusted local agents and help you prepare your home for the market.
There’s no wrong answer, just the right one for you
Selling before buying might not be right for everyone, but it could be right for you. The key is planning, getting expert support, and understanding the financial implications before you take the leap.
Aussie is here to help you every step of the way. Whether you’re weighing up the options or ready to make a move, we’ve got the tools, the Brokers, and the experience to help you upgrade with clarity and confidence.
Chat with an Aussie Broker today. We’ll help you weigh up the options and model the numbers so you can upgrade with confidence.
Frequently Asked Questions
1. Is it better to sell before you buy?
It depends. Selling first gives you clarity on your budget and avoids juggling two properties, but it might mean renting or moving twice.
2. Will selling first boost my borrowing power?
Usually, yes. With a bigger deposit and less debt, lenders may offer you more, and better rates too.
3. What’s the downside of selling first?
You might feel rushed to buy, need short-term housing, or miss out if the market moves quickly. Planning ahead is key.
4. What if I find my next home before I’ve sold?
You could consider bridging finance or talking to an Aussie Broker about your options, but timing matters.
