Buying a home can be easier the second time around, as you’ll likely have a better idea of what to expect. However, if you’re selling your current home at the same time you’re buying your next one, there are a few extra steps you need to consider.
1. Reasons for buying
Consider the reasons you’re moving and the features you’re looking for in your next home. You may need more space for a growing family or want to downsize to better suit your lifestyle. Many people also buy a new home to move closer to their family, job or great schools.
If you’re happy with the location of your current home, you may like to consider renovating rather than moving.
2. Using the equity in your current home
Equity is the difference between the market value of your property and the amount you still owe on your home loan. If you’ve made extra mortgage repayments over the years or your property has increased in value, you may be able to access the equity in your current home and use it as a deposit for your next one. You may also be able to use this property as security for the home loan on your next property.
Our home buying guide (PDF) has more on using the equity in your home.
3. Understanding the costs
If you bought your first home a while ago, there may be additional costs that you haven’t considered, or selling costs that you haven’t had to deal with before. These may include bridging finance, stamp duty, real estate agent fees and moving costs. Understanding how much it will cost to buy your next home can help you stay on top of your finances every step of the way.
Our home loan calculators and tools can help you get your head around the costs of buying your next home.
4. Work out how much you can afford
Buying your next home should help you achieve your financial goals, as well as give you the lifestyle benefits you’re looking for. Once you know how much equity you have in your current home and the costs involved in buying a new home, use our calculators to work out how much you can borrow and what your repayments will be.
