MOVING ON UP
When you’re ready, so are we …
Congratulations, you’re ready to upgrade!
Have you outgrown your current property? Or perhaps you’re looking to move to a more prestigious address? We can help you with the upgrade process, from casual advice about selling your existing property – based on our real estate agency experience – to securing finance for your next home.
Key areas to think about
In all the excitement of buying a new home, be sure to give consideration to the following …
What’S YOUR
MAIN GOAL?
Are you upgrading, downgrading, needing another bathroom, more yard, more bedrooms/less bedrooms? How will this benefit you in the long haul, both with the new property and in terms of your overall finances/wealth?
LEVERAGING
EQUITY
Are you able to upgrade whilst retaining your existing property as an investment? This is a common way for people to start building their property portfolio, but could you fund both mortgages? Let’s discuss your options…
TiMING IS
EVERYTHING
Will you buy first or sell first? Or will you try to manage the tandem dance? Is your next property dependent on lining up the sale of your current property? We understand the process so can assist with lining up settlements.
How we can help
Just a few ways we can support you on your new property journey …
BRIDGING LOAN OPTIONS
A bridging loan provides the funds you need to buy your next home before you’ve sold your current one. This includes paying the deposit so you can secure the new property, as well as other buying costs such as Stamp Duty.
Once you settle on your old home, the proceeds of sale are paid as a lump sum to reduce your interest repayments on the bridging loan. The bridging loan then becomes your new home loan. Whilst there are costs associated with bridging – you’re essentially paying for two properties simultaneously for a period – it does enable you to secure a new property prior to selling your existing one. This can be particularly useful when extended settlement terms are not available on your new property. We can help you determine the costs and benefits of bridging for your situation, as well as exploring alternative options.
LOAN PORTABILITY REVIEW
Loan portability refers to transferring the loan on your current home across to your new property. Some home loans offer this as a feature, so you won’t need to refinance when you upgrade to your next home.
Bringing your old loan with you works if you’re selling and buying at the same time. This offers the convenience of staying with your current loan, and avoids you having to pay for bridging or refinancing. However, there are normally fees attached to using the loan portability feature.
If you’re certain the loan you already have is providing you the best possible deal, then loan portability may be worth exploring. If you’re unsure, then we can help you review your options so you can make an informed decision – and if that means staying with your current loan, that’s totally fine with us.
REFINANCING OPTIONS
Upgrading can be an opportunity to refinance your home loan. This means taking out a new loan to pay off your current mortgage, to get improved loan features, and/or a more competitive interest rate.
If you’re thinking of refinancing, remember it’s important to get good financial advice to be clear on all the costs and fees, and, of course, to make sure you’re genuinely getting a better deal. We’re always happy to have these conversations.
EXTENDING SETTLEMENT?
When you buy or sell a home, contracts are signed and exchanged, and a deposit is paid to the vendor. This is followed by a period of 4-6 weeks during which time enquiries are made and documents prepared by solicitors or conveyancers.
Settlement is when the full amount of the sale price is paid to the vendor, and you become the legal owner of the property. Although the standard settlement is 4-6 weeks you may be able to negotiate a longer period – known as a delayed settlement or extended settlement. This gives you, and the buyer/vendor party, more time to manage the gap between buying and selling, and potentially avoid the cost of bridging.
With our real estate background, we can help you understand the best way to approach discussions about extended settlements and potentially save you thousands.
We're here to help
And we're ready to talk as soon as you are.
Calculator
Honestly, we're mixed on loan calculators. Why? Because they're a great way to get a quick idea about loan affordability – but at the same time, there are a range of other costs associated with loans, and calculators don't take these into account.
So, feel free to have a play with the below. But for a true understanding of the best loan for you, let's have a chat.
WE’LL HELP YOU REALISE WHAT’S POSSIBLE.
