The family is getting bigger and you need a bigger home, a better school zone. Or perhaps you just need to be loved more.
Either way we can make things really simple, there are a few ways to go about this.
Open ended bridging
Imagine if you could settle on a new place and have around six months to sell the old home. This can be a great option and could be available at times. The advantage to this is that you move is smoother. Plus you have secured something you know you can enjoy living in before letting go of the last place. The downside is that the temporary large amount of loan is not gonna pay itself. Also you don’t have full certainty around the actual sale price before making a new commitment. What if you get way less? Suddenly the new pool might not look like a priority.
Selling with a late settlement
You could alternatively sell your home with a settlement date months away and try and find something quickly. This will give you certainty as you will know the budget you are working with. You will also have a good idea of the total end repayments on the new home. Assuming that you have been wise enough to talk to good mortgage adviser like us and have a pre approval in place.
If the settlement date for the new home does not match the old home, it is best to have a back up plan for short term accommodation and storage for furniture.
Buying with a late settlement
You could reverse the above and buy first. However this puts you under a lot of pressure to sell at any price to complete the transaction. Can be similar to the bridging finance option above as you will not have full certainty of the sale price, so only advisable if you have the means to handle additional repayments.
Top tips
- Study the current market, look at the prices of actual sales similar to your home and the one you want to buy. Do not rely on desktop algorithms or other opinions. Your best insight will be gained from the houses that have sold in the past few weeks.
- Get your approval from the bank before you sell or buy. Talking to a good mortgage adviser such as ourselves is important.
- Look at the possible home loan repayments at a range of interest rates, they can move before you are in a position to lock rates
